Immunogen (NASDAQ: IMGN) Surge on News of Takeover by AbbVieAbbVie (NYSE:ABBV) announced Thursday that it will acquire Immunogen (IMGN) and its flagship cancer therapy, Elahere, in a deal worth $31.26 per share.
The transaction values ImmunoGen (NASDAQ:IMGN) at a total equity value of approximately $10.1 billion and is expected to close in the middle of 2024.
Elahere is considered a "first-in-class antibody-drug conjugate (ADC) approved for platinum-resistant ovarian cancer (PROC)." ABBV believes the deal accelerates its commercial and clinical presence in the solid tumor space.
"The acquisition of ImmunoGen demonstrates our commitment to deliver on our long-term growth strategy and enables AbbVie to further diversify our oncology pipeline across solid tumors and hematologic malignancies," said Richard Gonzalez, chairman and chief executive officer of AbbVie. "Together, AbbVie and ImmunoGen have the potential to transform the standard of care for people living with cancer."
ImmunoGen shares have rocketed 83% to over $29 per share on the news.
"We see the deal as a positive for biotech as it reflects our view that quality oncology assets are of high interest to large pharma and merit a premium".
Price Momentum
IMGN is trading near the top of its 52-week range and above its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price higher, and the stock still appears to have upward momentum. This is a positive sign for the stock's future value.
Immunogen
ImmunoGen Inc. (IMGN) double-top indicates a short opportunityI was scanning stocks for chart patterns and came across Immunogen Inc. (IMGN) with a double-top already formed.
IMGN has been trading in a downward channel since February 2021 and shows no sign of stopping yet.
The price has reached a major support level of about 4.97, with only one major breach back in May. On three occasions it has dipped below slightly to reach 4.48 - 4.26.
Due to the major double-top chart pattern, I expect the 4.97 support level to be breached again and the price will likely reach 4.48 in the next several days, and possibly 3.48 sometime in January.
Of course, the price could bounce and follow the support line for a bit longer, or even continue higher. I'm betting on a move lower as the pattern completes its symmetrical shape.
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
Buying IMGN : Daily Model Show Momentum Turn Up Soon - brschultzThe daily model for IMGN shows major move about to take place causing price to rise dramitically over next 12 months (if i am correct)
