Immunomedics, Inc. (NASDAQ: IMMU) is having an overwhelmingly strong day in the market, and for good reason. The company made a key business update that led to excitement among investors. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:59), IMMU is trading at $6.79 per share after a gain of $1.38 per share or 25.51% thus far today.
IMMU Offers Key Business Update
As mentioned above, Immunomedics is having a strong day in the market today after announcing key business updates. The updates included both leadership changes and a new strategic plan. Also, the company has raised quite a bit of money.
The company said that it has terminated the Exclusive Global Licensing Agreement with Seattle Genetics (SGEN). As a result, full rights of Sacituzumab Govitecan have been returned to IMMU. Sacituzumab Govitecan is a breakthrough therapy the company created as a treatment for triple-negative breast cancer.
Also, IMMU informed its investors that it has raised $125 million in gross proceeds. The money has been raised through a private placement of Series A-1 Convertible Preferred Stock. The private placement was held with institutional investors. In a statement, Behzad Aghazadeh, Chairman of the Board at IMMU, had the following to offer…
“We are pleased to announce these significant developments and to provide this new level of clarity regarding the progress that has been made at Immunomedics and the future direction of the company. After conducting a full multi-faceted review of the organizational, operational, and clinical and regulatory capabilities, we are confident that Immunomedics can full execute on a strategic plan over the next several years to become a recognized leader in the field of antibody-drug conjugates. We now have the financial ability to fully focus on taking the steps to ensure the Company has the right leadership, organization structure and resources necessary to bring IMMU-132 to market and achieve our long-term objectives. The enthusiastic reception from institutional investors to invest in Immunomedics and IMMU-132 reflects the value the Company is poised to deliver to patients, employees and stockholders.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on IMMU. In particular, we’re interested in following the company through the process of making IMMU-132 accessible to the medical community and are excited about what this could mean for the company moving forward. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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