Immunomedics Inc. ($IMMU) is reported to have halted its deal with Seattle Genetics, which was announced on February 10th earlier this year. However, the collaboration was criticized by the activist firm venBio for providing little value to the Immunomedics shareholders. VenBio is the largest shareholder Immunomedics with 9.9 percent stake. Four of its nominees were inducted to the Board of Directors during 2016 Annual Meeting of Stockholders last Friday.
Under the terms of the agreement, Seattle Genetics had agreed to pay $250 million in cash for the rights to IMMU-132, a cancer treatment drug. The company had also agreed to royalties on IMMU-132 sales and an additional $1.7 billion in back-end milestone payments to Immunomedics.
The company stock jumped significantly by over 16 percent in its Thursday trading session. However, the stock is a little subdued today. The price for Immunomedics stock has increased 61 percent this year so far while its 12 months gain stands at 140 percent.
Immunomedics also recently announced its second quarter results. The company’s revenue stood at $0.4 million, down from $0.7 million revenue it had earned for the corresponding quarter of the previous year. Net loss attributable to stockholders was reported at $24.4 million, or $0.23 per basic and diluted share, for the second quarter of fiscal year 2017.