125 WEEKS
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`Rel. S&P 500
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`08OCT10 - 21FEB13
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`2010
`2011
`O N
`D J F M A M J
`J A S O N
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`2012
`D J F M A M J
`J A S O N
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`D J F
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`HI-06JUL12 211.75
`LO/HI DIFF 111.75%
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`CLOSE
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`156.20
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`LO-08OCT10 100.00
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`18.10
`HI-13JUL12
`LO/HI DIFF 194.31%
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`CLOSE
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`14.30
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`LO-08OCT10
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`6.15
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`PEAK VOL. 11345.5
`VOLUME
`1264.1
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`210.00
`180.00
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`150.00
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`120.00
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`18.00
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`16.00
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`14.00
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`12.00
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`10.00
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`8.00
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`10000
`8000
`6000
`4000
`2000
`
`RBC Capital Markets, LLC
`
`Adnan Butt (Analyst)
`(415) 633-8588; adnan.butt@rbccm.com
`
`Michael J. Yee (Analyst)
`(415) 633-8522; michael.yee@rbccm.com
`
`Charmaine Chan (Associate)
`(415) 633-8621; charmaine.chan@rbccm.com
`
`All values in USD unless otherwise noted.
`
`FIRST GLANCE | COMMENT
`FEBRUARY 22, 2013
`
`ImmunoGen, Inc. (NASDAQ: IMGN; 14.30)
`Kadcyla Approved; Good Pricing and Label; Focus on
`Launch and Pipeline
`
`Outperform
`Speculative Risk
`
`Impact
`IMGN announced that Kadcyla (T-DM1) was approved and gave label and
`pricing information.
`
`First Impression
`Expectations for T-DM1 in metastatic breast cancer remain high and approval
`and a strong launch are largely expected. With in-line to better label and pricing
`($9,800/month) the focus will now shift to launch dynamics and increasingly to
`the proprietary pipeline. While lorvotuzumab for SCLC is the most advanced,
`in our view, IMGN289, ‘529 and ‘853, could be as interesting as they all target
`high unmet needs. We expect first clinical data from these compounds starting
`around mid-2013 and into 1H:14 potentially culminating in ‘go/no-go’
`decisions on one or more pivotal programs.
`• US approval in line with expectations. The PDUFA date was Feb. 26, 2013
`and given the strong EMILIA data approval was widely anticipated. The key
`questions were around label and pricing, both of which are in-line to positive.
`• Pricing is better than forecast. Kadcyla is priced at ~$9,800 per month,
`which is above our $8,000 per month estimate. Although with gross-to-net
`adjustments, if any, the price could come in closer to our forecast.
`• Label seems permissive. Kadcyla can be given to patients with HER2+
`metastatic breast cancer who have previously been treated with Herceptin and
`a taxane. Patients should either have already been treated for metastatic
`cancer or had their early stage cancer come back during or within 6-months
`after they completed treatment following surgery. As IMGN previously
`stated, the label could allow flexibility of use.
`• Milestone and royalties to start. IMGN could start recognizing royalties as
`soon as calendar 2Q:13, which is in-line with our estimates. We forecast
`1Q:13 T-DM1 sales of ~$58M in the US and royalties to IMGN of ~$2M.
`IMGN will also receive a $10.5M approval milestone.
`• EU approval next. We currently forecast approval in 2H:13.
`• Catalysts to look out for.
`• Lorvotuzumab (IMGN901) pivotal ‘go/no-go’ decision likely by 2014.
`6-month PFS rate from the NORTH study will be available by YE:13 and
`IMGN could decide whether to investment more in activities or not.
`• IMGN853 for ovarian cancer, NSCLC, etc. Phase I data expected at
`ASCO. This is one program where IMGN could decide on a potentially
`pivotal path quickly.
`• IMGN289 for NSCLC, etc. Patient dosing will begin in 2H:13.
`Theoretically, IMGN289 could be active even in patients who have failed
`anti-EGFR drugs.
`• IMGN529 for NHL Phase I data likely at ASH.
`
`Priced as of prior trading day's market close, EST (unless otherwise noted).
`For Required Conflicts Disclosures, see Page 3.
`
`IMMUNOGEN 2269, pg. 1
`Phigenix v. Immunogen
`IPR2014-00676
`
`

`

`February 22, 2013
`
`ImmunoGen, Inc.
`
`Company Description
`ImmunoGen is a Cambridge, Massachusetts-based biopharmaceutical company that discovers and develops novel therapeutics for the
`treatment of cancer.
`
`2
`
`IMMUNOGEN 2269, pg. 2
`Phigenix v. Immunogen
`IPR2014-00676
`
`

`

`February 22, 2013
`
`Required Disclosures
`
`ImmunoGen, Inc.
`
`Conflicts Disclosures
`The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total
`revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated by
`investment banking activities of the member companies of RBC Capital Markets and its affiliates.
`
`A member company of RBC Capital Markets or one of its affiliates managed or co-managed a public offering of securities for
`ImmunoGen, Inc. in the past 12 months.
`
`A member company of RBC Capital Markets or one of its affiliates received compensation for investment banking services from
`ImmunoGen, Inc. in the past 12 months.
`
`RBC Capital Markets, LLC makes a market in the securities of ImmunoGen, Inc. and may act as principal with regard to sales or
`purchases of this security.
`
`RBC Capital Markets has provided ImmunoGen, Inc. with investment banking services in the past 12 months.
`
`The author is employed by RBC Capital Markets, LLC, a securities broker-dealer with principal offices located in New York, USA.
`
`Explanation of RBC Capital Markets Equity Rating System
`An analyst's 'sector' is the universe of companies for which the analyst provides research coverage. Accordingly, the rating assigned to
`a particular stock represents solely the analyst's view of how that stock will perform over the next 12 months relative to the analyst's
`sector average.
`Ratings
`Top Pick (TP): Represents analyst's best idea in the sector; expected to provide significant absolute total return over 12 months with a
`favorable risk-reward ratio.
`Outperform (O): Expected to materially outperform sector average over 12 months.
`Sector Perform (SP): Returns expected to be in line with sector average over 12 months.
`Underperform (U): Returns expected to be materially below sector average over 12 months.
`Risk Qualifiers (any of the following criteria may be present):
`Average Risk (Avg): Volatility and risk expected to be comparable to sector; average revenue and earnings predictability; no
`significant cash flow/financing concerns over coming 12-24 months; fairly liquid.
`Above Average Risk (AA): Volatility and risk expected to be above sector; below average revenue and earnings predictability; may
`not be suitable for a significant class of individual equity investors; may have negative cash flow; low market cap or float.
`Speculative (Spec): Risk consistent with venture capital; low public float; potential balance sheet concerns; risk of being delisted.
`
`Distribution of Ratings
`For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories - Buy,
`Hold/Neutral, or Sell - regardless of a firm's own rating categories. Although RBC Capital Markets' ratings of Top Pick/Outperform,
`Sector Perform and Underperform most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same
`because our ratings are determined on a relative basis (as described above).
`
`Distribution of Ratings
`RBC Capital Markets, Equity Research
`
`Count
`
`Percent
`
`788
`703
`69
`
`50.51
`45.06
`4.42
`
`Investment Banking
`Serv./Past 12 Mos.
`Count
`
`Percent
`
`282
`185
`9
`
`35.79
`26.32
`13.04
`
`Rating
`
`BUY[TP/O]
`HOLD[SP]
`SELL[U]
`
`3
`
`IMMUNOGEN 2269, pg. 3
`Phigenix v. Immunogen
`IPR2014-00676
`
`

`

`February 22, 2013
`
`ImmunoGen, Inc.
`
`Rating and Price Target History for: ImmunoGen, Inc. as of 02-21-2013 (in USD)
`
`08/27/10
`SP:7
`
`04/08/11
`OP:16
`
`10/26/12
`OP:15
`
`01/25/13
`OP:17
`
`20
`
`16
`
`12
`
`8
`
`4
`
`Q1
`
`Q2
`
`Q3
`
`Q1
`
`Q2
`
`Q3
`
`Q1
`
`Q2
`
`Q3
`
`2010
`
`2011
`
`2012
`
`0
`Q1
`
`2013
`
`Legend:
`TP: Top Pick; O: Outperform; SP: Sector Perform; U: Underperform; I: Initiation of Research Coverage; D: Discontinuation of Research Coverage; NR: Not Rated; NA: Not Available;
`RL: Recommended List - RL: On: Refers to date a security was placed on a recommended list, while RL Off: Refers to date a security was removed from a recommended list.
`
`Created by BlueMatrix
`
`References to a Recommended List in the recommendation history chart may include one or more recommended lists or model
`portfolios maintained by a business unit of the Wealth Management Division of RBC Capital Markets, LLC. These Recommended
`Lists include a former list called the Prime Opportunity List (RL 3), the Guided Portfolio: Prime Income (RL 6), the Guided Portfolio:
`Large Cap (RL 7), Guided Portfolio: Dividend Growth (RL 8), the Guided Portfolio: Midcap 111 (RL9), and the Guided Portfolio:
`ADR (RL 10). The abbreviation 'RL On' means the date a security was placed on a Recommended List. The abbreviation 'RL Off'
`means the date a security was removed from a Recommended List.
`
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`RBC Capital Markets Policy for Managing Conflicts of Interest in Relation to Investment Research is available from us on request. To
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`
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`Analyst Certification
`All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the
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`
`4
`
`IMMUNOGEN 2269, pg. 4
`Phigenix v. Immunogen
`IPR2014-00676
`
`

`

`February 22, 2013
`
`ImmunoGen, Inc.
`
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`
`5
`
`IMMUNOGEN 2269, pg. 5
`Phigenix v. Immunogen
`IPR2014-00676
`
`