IGM Bio tumbles as co halts development of 2 autoimmune drugs

IGM Biosciences

10/01/2025 12:24

** Shares of biotech firm IGM Biosciences  IGMS.O  slump
~69% to $1.92 premarket
    ** On Thursday, IGMS said it is halting further development
of 2 drugs, imvotamab and IGM-2644, that 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
    ** Co also plans to lay off about 73% of its employees 
        ** As of Dec. 31, 2023, co had 224 full-time employees -
SEC filing
  
    ** Brokerage 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"
        ** RBC downgrades stock to "sector perform" from
"outperform" and 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))