Why Is IGM Biosciences (IGMS) Stock Up Today?

Today, a whirlwind of news surrounds IGM Biosciences (NASDAQ:IGMS). It also happens to be very positive for IGMS stock; shares of the biotech company have more than doubled in rather impressive fashion.

A scientist holds a test tube while it is in a container
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As a biotech company focused on developing various antibody treatments for a number of diseases, many investors have their eye on IGM Biosciences. This isn’t some small company either. After today’s rise, its market capitalization is encroaching on $1 billion.

That said, the biotech space has been volatile, as has IGMS stock. Over the past year, shares have more than halved, including today’s impressive rally. Absent of key news, companies like IGM can be prone to significant selloffs depending on market conditions.

Still, the good news is the company now has a number of positive catalysts. So, let’s dive into what the market is pricing in with IGMS stock right now.

IGMS Stock Surges on a Number of Key Announcements

Today, IGM announced its fourth-quarter and full-year 2021 financial results. As with any earnings release, some degree of volatility can be expected. However, it’s not the numbers that drove IGMS stock higher today. Rather, some additional announcements drove shares.

Most notably, IGM announced a “worldwide collaboration agreement” with biotech giant Sanofi (NASDAQ:SNY). This agreement leverages IGM’s proprietary antibody technology platform for various oncological and autoimmune/inflammation targets. Further, the deal stipulates a “$150 million up-front payment” to IGM, as well as the potential for $6 billion in revenue via various milestones. The partnership will see a 50-50 split in profit sharing across specific markets. It may also boost the company’s global marketing potential.

This is certainly a big deal for IGM stock. The market also appears to like the additional details set out in this morning’s conference call on the matter.

If this news wasn’t enough, the company announced a proposed public offering of $200 million in common stock today as well. The details of this offering, including how the funds will be used, are expected to be released in a subsequent prospectus. For now, investors appear to be focused on the Sanofi news as a key long-term growth driver.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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