ImmunoGen, Inc. (NASDAQ:IMGN) closed its latest trading session on Friday at $2.60 after gaining following the announcement that its pipeline ovarian cancer treatment mirvetuximab soravtansine failed to achieve expected results in the late-stage study.

The drug developer revealed that it compared mirvetuximab soravtansine’s performance with chemotherapy. However, the pipeline treatment did not yield significant results and was unable to prevent disease progression. The condition of the patients in the clinical study continued to worsen while they were treated using the developmental drug.

ImmunoGen evaluated mirvetuximab soravtansine as a standalone drug in the late-stage study that yielded unsatisfactory results. The treatment did not, however, demonstrate significant differences with chemotherapy as far as overall survival is concerned. However, the company is also testing the company as a compound treatment combined with other therapies.

The news about the developmental treatment’s poor performance appears to have resulted in poor investor sentiments, leading to a sharp decline in the value of the stock. For example, the stock tumbled from $4.72 on Thursday to $2.40. ImmunoGen Chief Medical Officer Anna Berkenblit stated that the company would work on further analysis based on the positive efficacy signals that the researchers observed from the study.

“ImmunoGen will further assess the data from Forward I to determine potential next steps with a monotherapy approach,” stated Immunogen CEO Mark Enyedy.

ImmunoGen reveals that the negative late-stage study is not the end of the road for the drug

The CEO statement highlights the company’s plan to continue evaluating the treatment although there has been no confirmation whether it will be evaluated as a single treatment or as a combination treatment. The biopharma is also developing treatments for other types of cancer which will it hopes will help work towards strengthening its financial position.

ImmunoGen has three antibody-drug conjugates that are currently in the development phase. The company also has roughly $295 million that it plans to use to fund operations especially those meant to advance its pipeline. As far as the stock performance is concerned, biopharma stock prices are usually affected by such announcements, so positive news also tends to precede a bullish performance.

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