ImmunoGen Jumps 30% on Aventis Deal - TheStreet

ImmunoGen Jumps 30% on Aventis Deal

The two companies will work together in developing antibody-based anticancer products.
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Shares of

ImmunoGen

(IMGN) - Get Report

jumped on Thursday after the company announced an agreement with

Aventis

to develop antibody-based anticancer products.

In the deal, ImmunoGen will receive $12 million up front and at least $50 million in research funding over a three-year period. France-based Aventis can extend the partnership for one to two years, which could bring the total funding up to $99 million.

Shares of ImmunoGen were up about 30% at $4.86 in afternoon trading.

ImmunoGen said Aventis will retain the commercialization rights to any products created, as well as the rights to three early-stage product candidates ImmunoGen has lined up. They include a potential blood cancer drug, a possible new treatment for solid tumors and a potential new treatment for certain B-cell blood cancers.

Aventis will be responsible for product development, manufacturing and commercialization, and will cover all associated costs, but ImmunoGen said it has the option of co-promotion rights in the U.S. on a product-by-product basis.

Separately, ImmunoGen, based in Cambridge, Mass., was upgraded Thursday by First Albany to buy from neutral.