August 17, 2000
ImmunoGen, Inc. Reports Year-End Financial Results

CAMBRIDGE, Mass., Aug. 17 /PRNewswire/ -- ImmunoGen, Inc. (Nasdaq: IMGN) today announced financial results for the year ended June 30, 2000. The net loss for the year ended June 30, 2000 was $237,000, or $0.01 per share, compared to a net loss of $4,994,000, or $0.20 per share, for the year ended June 30, 1999. Revenues for the years ended June 30, 2000 and 1999 were $11,559,000 and $3,652,000 respectively. Total cash payments from collaborations for the years ended June 30, 2000 and 1999 were $13,000,000 and $3,000,000 respectively. These payments resulted in positive cash flow. The Company had $17,330,000 in cash and marketable securities as of June 30, 2000.

"The past twelve months comprise a period of enormous change for ImmunoGen. First, we were cash flow positive for the year. This is in part due to our excellent relationship with SmithKline Beecham (SB). HuC242-DM1/SB- 408075, our Tumor Activated Prodrug for the treatment of colorectal, pancreatic and certain non-small-cell lung cancers licensed to SB, is progressing nicely through Phase I/II clinical trials," said Mitchel Sayare, Ph.D., Chairman and CEO of ImmunoGen, Inc. "Second, we have made considerable progress in the preclinical development of our small-cell lung cancer product candidate, huN901-DM1, and anticipate that our development partner, British Biotech, will file an IND in 2000."

Dr. Sayare continued, "Third, a major highlight for the fourth quarter as well as the year were our two collaborations with Genentech for the use of ImmunoGen's Tumor-Activated Prodrug (TAP) technology. These partnerships, potentially worth in excess of $40 million plus royalties for each product developed, resulted in $5 million in up-front payments for ImmunoGen this quarter. Moving forward, ImmunoGen plans to leverage these endorsements of our TAP technology to actively seek additional partnerships."

Total operating expenses for the year ended June 30, 2000 increased 52% to $11,941,000 as compared to $7,884,000 for 1999. Research and development expenses increased by 46%, $2,780,000, during 2000 due to higher research and development costs associated with advancing huC242-DM1/SB-408075 through clinical trials.

ImmunoGen, Inc. develops innovative biopharmaceuticals, primarily for cancer treatment. The Company has created potent tumor-activated prodrugs, consisting of drugs coupled to monoclonal antibodies, for delivery to and destruction of cancer cells.

This press release includes forward-looking statements based on management's current expectations. Factors that could cause future results to differ materially from such expectations include, but are not limited to: the ability to secure future funding; the success of the Company's research strategy; the applicability of the discoveries made therein; the difficulties inherent in the development of pharmaceuticals, including uncertainties as to the timing and results of preclinical studies; uncertainty as to whether the Company's potential products will succeed in human clinical trials and uncertainty as to the results of such trials; uncertainty as to whether adequate reimbursement for these products will exist from government, private healthcare insurers and third-party payors; and the uncertainties as to the extent of future government regulation of the pharmaceutical business.

Mitchel Sayare, Ph.D.
Chairman and CEO
ImmunoGen, Inc.
(617) 995-2500

Gretchen L. P. Schweitzer
Wendy Soutsos
Feinstein Kean Healthcare
(617) 577-8110



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