February 08, 2001
ImmunoGen, Inc. Reports Second Quarter Results

CAMBRIDGE, Mass., Feb. 8 /PRNewswire/ -- ImmunoGen, Inc. (Nasdaq: IMGN) today announced financial results for the second quarter ended December 31, 2000. For the three-month period, the Company reported a net loss to common stockholders of $2,604,000 or $0.07 per basic and diluted share, compared to a net profit to common stockholders of $105,000 or less than $0.01 per diluted share in the same quarter last year. For the six-month period ended December 31, 2000, the Company reported a net loss to common stockholders of $5,037,000 or $0.14 per basic and diluted share compared to net earnings of $1,855,000 or $0.06 per diluted share, for the same period last year.

Despite these losses, for both the three-month and six-month periods in the current fiscal year, the Company was cash-flow positive on an operating basis. The Company generated $2,870,000 of cash from operations in the three months ended December 31, 2000 and $20,000 of cash for the six months then ended. ImmunoGen's November 2000 public offering, a collaborator investment of $15,000,000 and receipt of $7,000,000 in collaborator payments substantially improved the balance sheet of the Company during the quarter ended December 31, 2000, yielding in excess of $158 million in cash and marketable securities.

Revenues for the quarters ended December 31, 2000 and 1999, respectively, were $626,000 and $2,500,000. For the six months ended December 31, 2000 and 1999, revenues were $2,385,000 and $6,505,000, respectively. Included in revenues for the three- and six-month periods ended December 31, 2000 were $341,000 and $2,100,000, respectively, of the $7,000,000 of milestone payments received during the quarter. The balance of the milestone payments has been recorded as deferred revenue on the balance sheet and will be recognized as earned.

R&D expense increased 91% and 93% for the three- and six-month periods ended December 31, 2000. The increase in R&D expenses in the quarter ending December 31, 2000 primarily relates to Company efforts to develop new products for its internal pipeline and includes payments made in connection with the MorphoSys and Genzyme Transgenics agreements. In addition to these payments, R&D expense for the six months ended December 31, 2000 also includes expenses related to the initiation and support of the Company's second Phase I/II clinical trial coupled with ongoing support of its first Phase I/II clinical trial of its colorectal cancer product, huC242-DM1/SB-40875. G&A expenses increased 62% and 64% for the three- and six-month periods ended December 31, 2000 largely due to increased business development and investor relations efforts. Interest income for the quarter and six months ended December 31, 2000 was $1,243,000 and $1,456,000, respectively, compared to $75,000 and $134,000 for the comparable periods in the prior year. The increase is attributable to higher cash and investment balances resulting from the November 2000 offering and collaborator investments and payments discussed above.

"We are very pleased with these numbers. Once again, ImmunoGen has managed its expenses and revenues in such a way that we are cash-flow positive from an operations perspective. With our fund-raising activities during the period, we have put our balance sheet in better shape than ever in our history. And our incremental expenses over last year are directly attributable to advances in the development of our existing products and future pipeline," said Mitchel Sayare, Chairman and CEO.

ImmunoGen will hold a conference call at 4:30 PM EDT on February 8, 2001 to discuss these financial results. Interested parties may access the webcast at the Company's home page, under the heading "News and Events" and subheading "Conferences," or may access the call, listen-only, by dialing 800-288-8968 for domestic calls and 612-332-0345 for international calls and mentioning the "ImmunoGen Conference Call." A replay of the webcast will be available starting on February 9, 2001 through February 18, 2001 at under the heading "News and Events" and subheading "Conferences." Minimum Requirements to listen to broadcast: RealPlayer software, downloadable free from under the subheading "Help" located in the upper right corner of the home page, and at least a 14.4Kbps connection to the Internet.

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. Its lead product, huC242-DM1/SB-408075 is in two Phase I/II human clinical trials for colorectal, pancreatic and certain non- small-cell lung cancers. The Company has collaborative arrangements with GlaxoSmithKline, Genentech, Abgenix, British Biotech, MorphoSys and Avalon.

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; delayed achievements of milestones; reliance on collaborators; uncertainty as to whether the Company'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) 995-2500



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