VenBio Comments On Its Recent Nomination Of Four Highly-Qualified Candidates For Board Of Immunomedics, Inc.

venBio Select Advisor LLC ("venBio"), venBio's New York-based investment manager focused principally on publicly traded biotechnology companies, and the largest beneficial owner of Immunomedics, Inc. (NASDAQ: IMMU) ("Immunomedics" or the "Company") with approximately 9.5 million shares, or 9.0%, announced that it has nominated four highly-qualified candidates - Scott Canute, Peter Barton Hutt, Dr. Khalid Islam, and Dr. Behzad Aghazadeh - for election to the Company's Board of Directors at the upcoming 2016 Annual Meeting of stockholders, to be held on December 14, 2016.

Behzad Aghazadeh, Ph.D., Managing Partner at venBio, issued the following statement:

"Over the past year, we have engaged on numerous occasions with the Immunomedics management team and have offered constructive suggestions to increase the transparency into the Company's development programs and overall business strategy. During this period however, the Board of Directors and management of Immunomedics, in our view, have made a series of missteps contributing to a significant decrease in stockholder value. Most notably, they have failed to unlock the potential of IMMU-132, the Company's drug candidate for treating triple negative breast cancer (a deadly disease for which no targeted therapies currently exist). This has positioned the Company poorly moving forward, and left us no choice but to take action in order to protect the best long-term interests of both stockholders and patients in desperate need of IMMU-132 treatment.

Further, we believe that Chief Scientific Officer David Goldenberg ("Dr. Goldenberg") and his wife, Chief Executive Officer Cynthia Sullivan ("Ms. Sullivan") bear significant responsibility for the ills that have plagued the Company. We find it especially troubling that the Company's husband-wife CEO-CSO team occupies almost half of its Board seats, severely limiting independent oversight of management.

The strategic failures and missteps that we believe are holding Immunomedics back include the following:
  • The Company's breach of American Society of Clinical Oncology's (ASCO) data embargo leading to their ejection from this prestigious conference.
  • The Company's failure to deliver on its promise of signing a partnership or licensing agreement to move its drug candidate, IMMU-132, through clinical development. Immunomedics' continued failure to enter a partnership has stymied efforts to complete the clinical trials necessary to deliver this promising therapy to patients with no other treatment options.
  • What we view as the Company management team's self-enrichment at the expense of stockholders, and the issuance of a dilutive financing at a punitive discount.
  • The Company's inability to retain independent Board members and senior management, most notably the recent resignation of Board member Arthur Kirsch and special advisor Sol Barer, as well as the Company's Chief Medical Officer and Chief Financial Officer. The remaining Board has become stagnant, with each director having served for more than a decade.

We believe the Company's failures have eroded the investment community's confidence in the Board's ability to oversee the advancement of this important medicine. That is why we are nominating four director candidates (three of whom are wholly-independent of venBio) who we believe have the strong pharmaceutical development background, commercial manufacturing expertise, and pharmaceutical partnering/deal making experience that the Company sorely and urgently needs. We believe these candidates will bring a diligent and analytical approach to the Board and build a culture of strong oversight and effective management to drive sustained value at the Company and rapidly deliver IMMU-132 to patients in need."

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