IGM Bio hits record low after development of two autoimmune drugs halted

IGM Biosciences

10/01/2025 17:55

(Updates)
    ** Shares of biotech firm IGM Biosciences  IGMS.O  slump
68.5% to $1.95, hitting their lowest level since Nasdaq debut in
September 2019
        ** Stock on track for biggest one-day percentage fall
since debut, if losses hold
  
    ** IGMS said on Thursday it is halting further development
of two drugs, imvotamab and IGM-2644, which were being tested
for immunity-related diseases
    ** Early-stage trail data shows imvotamab is not effective
enough in depleting B cells, a type of white blood cells, for
rheumatoid arthritis and systemic lupus erythematosus, CEO Mary
Beth Harler says
    ** Co also plans to lay off about 73% of its employees 
        ** Co had 224 full-time employees as of Dec. 31, 2023 -
SEC filing
    ** RBC Capital Markets notes IGMS's preclinical
collaboration with Sanofi  SNY.O   SASY.PA  for undisclosed I&I
(immunology and inflammation) targets but does not expect it "to
drive near-term value"
        ** Brokerage downgrades stock to "sector perform" from
"outperform", cuts PT to $1.50 from $20
    ** At least three other brokerages also downgrade stock and
cut PT
    ** IGMS declined ~30% in 2024

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com))