Key points:
- IGM Biosciences’ stock price soared by 37.9% on a deal with Sanofi.
- The two firms inked a deal that could be worth billions to IGM over time.
- Investors hope that the news will lead to a sustained rally in the future.
The IGM Biosciences Inc (NASDAQ: IGMS) stock price rallied by 37.9% after inking a collaboration agreement with Sanofi to leverage IGM’s proprietary IgM antibody technology platform to discover agonists focused on three oncology diseases and three immunology/ inflammation diseases.
Also read: The Best Biotech Penny Stocks Under $5 To Buy Right Now.
Investors cheered the news that IGM would receive a hefty upfront payment of $150 million from Sanofi, with future milestone payments adding up to almost $6 billion.
The two companies will collaborate to create, develop, manufacture and commercialise a new class of potential therapeutics using the superior features of multi-valent IgM antibodies over conventional IgG antibodies used for stimulating cell surface receptors.
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The engineered IgM antibodies represent a new class of potential therapeutics that combine the multi-valency of IgM antibodies with 10 binding sites compared to conventional IgG antibodies with only 2 target binding sites.
Investors cheered the collaboration agreement with Sanofi that could unlock a revolutionary class of medicines that could change how the entire pharmaceutical industry operates.
Fred Schwazer, IGM Biosciences CEO, said: “Sanofi is a global leader in the development and commercialisation of innovative therapies, and we welcome the addition of their extensive expertise and resources in expanding and accelerating the development of our IgM antibody platform across multiple areas of high unmet need. This partnership builds on an existing research collaboration with Sanofi and is a key step towards our goal of unlocking the full breadth of potential for this important new class of therapeutics. We are pleased to share this vision with Sanofi and look forward to working together on these six potentially first- and best-in-class programs.”
John Reed, M.D., PhD, Sanofi’s Global Head of Research and Development, said: “We look forward to this collaboration with IGM Biosciences, a pioneer in a new class of antibody medicines for the treatment of cancer, immunology, and inflammatory diseases. The IGM Biosciences technology platform offers an exciting approach to developing high-avidity IgM antibodies that can efficiently bind and stimulate the activity of cell surface receptors. This unique platform has the potential to overcome historical limitations of conventional IgG antibodies when seeking agonists of some classes of receptors.”
IGM Biosciences’ stock price has fallen by 48.89% in 2022, and investors are hoping that today’s announcement will lead to a sustained rally in future.
*This is not investment advice. Always do your due diligence before making investment decisions.
IGM Biosciences stock price.
IGM Biosciences’ stock price rallied 37.96% to trade at $20.68, falling from Monday’s closing price of $14.99.