NEW YORK (TheStreet) -- Immunogen (IMGN) - Get Report shares are climbing higher by 8.69% to $9.26 in afternoon trading on Tuesday, after the biotechnology company announced that it raised $200 million through a non-dilutive royalty transaction with TPG Special Situations Partners for the company's breast cancer treatment Kadcyla.

TPG will receive 100% of the royalty revenue from the drug's sales as part of the deal which was lauded by analysts at J.P. Morgan (JPM) - Get Report yesterday for allowing the company to fund the research for its more lucrative treatments.

"IMGN will receive $200mm upfront in exchange for royalty revenue on Kadcyla sales until royalties either total $235mm or $260mm depending on timing. Thereafter, ImmunoGen will receive 85% of Kadcyla royalties with TSSP receiving 15% until the end of the royalty stream. We view today's news as a positive as it removes a near-term financing overhang on the stock and provides runway for the company to further advance its wholly owned assets, most importantly IMGN853 (ovarian and endometrial cancer), which we expect will have phase I data at ASCO," said analysts.

The company said that it had about $107 million in cash and cash equivalents at the end of last year.

"With these funds, we are well positioned to implement strong clinical development programs for our promising product candidates, including initiation of potential registration trials as appropriate," said CFO David Johnston.

Separately, TheStreet Ratings team rates IMMUNOGEN INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate IMMUNOGEN INC (IMGN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• You can view the full analysis from the report here: IMGN Ratings Report

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