ImmunoGen is scheduled to report first-quarter earnings results before the opening bell on Friday, May 3. Analysts have projected a loss of 31 cents per share, wider than the loss it reported last year by cent. Revenues are expected to decline by 50% to $10 million.
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It’s worth noting that the biotech firm doesn’t have any product revenue, which means one can expect it to report operating loss in the near future. The company has been able to conduct research without revenues mainly by inking partnerships with its peers and receiving royalty and milestone payments. In addition, it has funded the losses through debt financing.
Thanks to the sell-off, the stock is currently pretty cheap, with most of the bad news embedded in the price. As a result, short interest in the stock has also seen a decrease recently.
Analysts are somewhat bullish on the stock, which has a 12-month average price target of $4.79. This is almost double the current trading price. While more downside is improbable, it is not impossible.
The company is rapidly burning cash for its research activities, so if it doesn’t show results soon, it could spell doom.