NEW YORK (AP) — Shares of ImmunoGen jumped 13 percent Monday after the Swiss drugmaker Novartis licensed another of its potential drugs.
Novartis will use ImmunoGen's antibody-drug conjugate technology to develop new treatments for cancer. ImmunoGen said the terms are similar to a licensing deal the companies announced in October. That means ImmunoGen will get an upfront payment and up to $200 million in milestone payments, as well as royalties on sales of any approved drugs.
ImmunoGen Inc. said it has reached five licensing agreements in 2013, including two other deals with Novartis.
The Waltham, Mass., company announced a major agreement with Novartis in 2010. As part of that deal, ImmunoGen received a $45 million payment.
ImmunoGen's technology is also used in Roche's breast cancer drug Kadcyla, which was approved early this year. It has partnerships with a spate of other companies.
Last week, ImmunoGen said it stopped a trial of an experimental cancer drug because it was not working. It was evaluating IMGN901 as a treatment for small-cell lung cancer.
Shares of ImmunoGen climbed $1.74 to $15.38 in afternoon trading. The stock is down 17.6 percent since ImmunoGen announced the failure of the IMGN901 study.