Abbvie has agreed to buy Immunogen at à price of $31.26 per share. Right now as of close the share price fromc IMGN is sitting at 29.29, a full $2/share off of the deal price. I think after all the failure from FTC trying to block the MSFT ATVI merger, they're not going to take a risk and try to block a merger unless it's very, very sure that they're going to be successful.
They're buying ImmunoGen to get their hands on a promising cancer treatment called Elahere. Elahere belongs to a new class of treatments called antibody-drug conjugates (ADC) that precisely targets cancer cells, potentially reducing toxicity for other cells.
Lina Khan NEEDS her next case to be a win.
The merger will close mid June 2024.
Guggenheim, BMO Capital, Deutsche Bank, Jeffries alll took a good look at this deal and raised their price target to $31. That alone shows me that they think this deal is solid and will go through.
This is how I'll play it. I'll be closely looking at IMGN's price and buying shares by small 3k-5k chunks if it somehow dips.
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