Immunomedics tanks after CEO Michael Pehl’s exit and ‘transition period’ results

Immunomedics (IMMU) plunged about 10% in the extended trading hours after the company announced about CEO Michael Pehl’s exit from the role of President, CEO and member of the Board. The biopharmaceutical company also announced results for the six months ended December 31, 2018 (transition period).

Net loss attributable to stockholders was $157.7 million, or $0.84 per share, for the Transition Period, compared to $121.3 million, or $0.88 per share, for the six months ended December 31, 2017.

The company stated that Michael Pehl stepped out as CEO due to personal reasons. Immunomedics appointed interim Chief Financial Officer Usama Malik as CFO and named Dr. Charles Baum as one of the directors of the Board. In addition, the Board has appointed Dr. Behzad Aghazadeh to Executive Chairman, and Scott Canute, a current member of the Board, to Executive Director.

On December 14, 2018, the Board approved a change in the company’s fiscal year end from June 30 to December 31, effective immediately. The reporting period for the six months ended December 31, 2018, is referred to as the “Transition Period.”

The Morris Plains, New Jersey-based company had no revenues in the Transition Period due to the discontinued sale of LeukoScan diagnostic imaging product during the quarter ended March 31, 2018, to focus on its ADC business.

In January 2019, Immunomedics received a Complete Response Letter (CRL) from the FDA for Biologics License Application (BLA) for its breast cancer drug. “Our primary focus is to ensure a high-quality BLA resubmission and gain FDA approval of sacituzumab govitecan for patients with metastatic triple-negative breast cancer (mTNBC),” said Behzad Aghazadeh, Executive Chairman.

Immunomedics stock, which went up 1.95% to $15.18 at the end of today’s regular trading session, had appreciated 6% since the beginning of 2019 and depreciated about 16% in the three months period.

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