IGM Biosciences has announced a strategic shift, halting the development of its Imvotamab and IGM-2644 treatments for autoimmune diseases. This decision follows interim data from Phase 1b studies that revealed insufficient B cell depletion in patients with rheumatoid arthritis and systemic lupus erythematosus. "Due to these findings, we have decided to discontinue further development of imvotamab," stated Mary Beth Harler, M.D., CEO of IGM Biosciences. The company is also reducing its workforce by 73% as part of its restructuring efforts to preserve cash, with cash and investments reported at $183.8 million as of December 31, 2024.
The abrupt discontinuation of these programs has led to multiple analyst downgrades. Stifel downgraded IGM Biosciences to Hold from Buy, slashing its price target to $2.50 from $27, citing the unexpected nature of the strategic pivot. Similarly, BMO Capital downgraded the stock to Market Perform from Outperform, reducing its price target to $2 from $21, highlighting the unpredictability of T cell-mediated approaches in autoimmune diseases.
IGM Biosciences (IGMS) shares have plummeted 68.71% to $1.94 as of 6:10 am on January 10th, down from its previous close of $6.20 on January 9th.