Immunomedics Sets 5-year High On Lupus Drug Data

NEW YORK (AP) — Shares of Immunomedics Inc. rocketed to a five-year high Thursday following successful clinical trial results for epratuzumab, a drug Immunomedics developed and licensed to UCB Pharma.

Immunomedics and UCB said the drug candidate met its goal in a mid stage clinical trial, as it was significantly more effective than placebo at treating the symptoms of systematic lupus. Immunomedics stock jumped $2.20, or 51.6 percent, to $6.47 in afternoon trading. Earlier it rose to $7.16, the highest price for Immunomedics shares since November 2003.

The Morris Plains, N.J.-based company struck a partnership with UCB in 2006. The deal gave UCB the rights to develop and sell epratuzumab for use against autoimmune disorders in return for money upfront, payments as the drug moved through clinical development and regulatory review, and royalties on sales.

Lazard Capital Markets analyst Terence Flynn said that Immunomedics could get as much as $135 million in sales milestones if the drug reaches the market, and estimated it would get an 18 percent royalty on sales.

Flynn wrote that UCB is planning to meet with the Food and Drug Administration by March 2010 to start discussions about a late stage study. He said the companies did not include a lot of data from the trial in their announcement, but may provide more information at a medical conference in October.