October 26, 2000
ImmunoGen, Inc. Reports First Quarter Financial Results

CAMBRIDGE, Mass., Oct. 26 /PRNewswire/ -- ImmunoGen, Inc. (Nasdaq: IMGN) today announced financial results for the first quarter ended September 30, 2000. For the three-month period, the Company reported a net loss to common stockholders of $2,434,000, or $0.07 per basic and diluted share, compared to a net profit to common stockholders of $1,750,000, or $0.05 per diluted share, in the same quarter last year.

Despite this loss, cash increased substantially, largely as a result of financing activity. The Company recorded revenues of $1,759,000 for the quarter ended September 30, 2000. This was comprised principally of revenue recognized under the collaboration agreement with SmithKline Beecham plc. Revenues were $4,005,000 for the three months ended September 30, 1999. Research and Development expenses for the three months ended September 30, 2000 increased 95% to $3,569,000, from $1,831,000 for the same period last year. The change from 1999 to 2000 was due in part to increased costs associated with supporting the Company's ongoing Phase I/II clinical trials of its colorectal cancer product, huC242-DM1/SB-408075. Additional R&D expenses were a direct result of Company efforts to develop new products for its internal pipeline. General and Administrative expenses increased 68% to $854,000 for the three months ended September 30, 2000 from $508,000 for the three months ended September 30, 1999, the difference largely due to increased business development and investor relations efforts.

"We continue to be very pleased by the progress we are making in our clinical trials, in our business development efforts and in creating new products to fill our pipeline. Though these investments in our future have had a modest effect on the bottom-line, we were cash-flow positive for the quarter and continue to build a solid cash position on our balance sheet," stated Mitchel Sayare, Ph.D., Chairman and CEO of ImmunoGen, Inc. "Business development activity, though adding cost to our expense line, has yielded important new sources of cash-flow for the Company, and is expected to yield even more value as we proceed with our business plan."

ImmunoGen, Inc. develops innovative biopharmaceuticals, primarily for cancer treatment. The Company creates potent tumor-activated prodrugs, or TAPs, consisting of highly potent, cell-killing drugs coupled to monoclonal antibodies, for delivery to and destruction of cancer cells. One of our TAP candidates is currently in Phase I/II clinical trials.

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 ImmunoGen's research strategy and 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; delayed achievements of milestones; reliance on collaborators; uncertainty as to whether ImmunoGen's potential products will succeed in entering human clinical trials and uncertainty as to the results of such trials; uncertainty as to whether adequate reimbursement for these products will exist from the 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) 995-2501



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