Immunogen's (NASDAQ:IMGN) Expectations Too High, as is Valuation

Immunogen's (NASDAQ:IMGN) valuation is too high, according to Needham, which is the result of expectations concerning late-stage T-DM1.

Needham says, "We believe the current valuation is built on high expectations for the late-stage T-DM1 along with the brand-name Roche (OTC:RHHBY) (N/R) partnership, but the value creation for ImmunoGen is modest, due to the mid-single digit royalty. Despite the best efforts of the management team, the remainder of the pipeline remains in a early stage and/or in the hands of the outside partners. We see few value-creating events in 2011 to support the current ~$470MM technology value. Accelerated progress in the earlystage internal pipeline or sizeable collaborations around the unpartnered pipeline products may provide an upside to our current valuation."

Needham & Company reiterates an "Underperform" rating on Immunogen Inc. (IMGN), which was trading at $8.17, down $0.62, or 6.95 percent, as of 2:33 PM EST.