Jefferies Cuts Price Target on Immunomedics (IMMU) as Clivatuzumab Program is Discontinued

Jefferies maintained a Hold rating on Immunomedics (NASDAQ: IMMU), and cut the price target to $1.50 (from $2.00), after the company decided to discontinue the ph 3 PANCRIT-1 trial testing clivatuzumab. The decision comes as a result of interim futility analysis by the independent Data and Safety Monitoring Board. The analysis compared the effect of clivatuzumab, plus low-dose gemcitabine, and best supportive care to the corresponding placebo arm after 50% of the required 371 deaths had occurred.

Analyst Chris Howerton commented, "As a result of an interim futility analysis by the DSMB, IMMU has discontinued the ph 3 PANCRIT-1 trial testing clivatuzumab in metastatic pancreatic cancer (mPC). As a result, we have removed clivatuzumab related revs. (~$77M at peak), lowered both R&D and SG&A expenses, and reduced our PT to $1.50 (vs $2 prev). Upcoming catalysts for IMMU include incremental data updates at AACR (Apr 16-20) and pot'l partnership announcement for '132."

For an analyst ratings summary and ratings history on Immunomedics click here. For more ratings news on Immunomedics click here.

Shares of Immunomedics closed at $2.65 yesterday.

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