IGM Biosciences, Inc. (IGMS) saw its stock plummet by 66.29% on January 10, 2025, closing at $2.09, a significant drop from the previous day's close of $6.20. The stock opened at $1.97 and fluctuated between a low of $1.87 and a high of $2.19, with an extraordinary trading volume of 5,706,826 shares, far exceeding the average daily volume of 232,700. This dramatic decline followed the company's announcement of halting the development of its Imvotamab and IGM-2644 treatments due to unsatisfactory interim data from Phase 1b studies. The decision to discontinue these programs, aimed at treating autoimmune diseases, was accompanied by a 73% workforce reduction as part of a strategic restructuring to conserve cash.
The market reacted sharply to the news, with multiple analysts downgrading the stock. Stifel, BMO Capital, and others slashed their price targets significantly, reflecting the uncertainty surrounding IGM's future prospects. The company's strategic pivot, which leaves it with no active pipeline candidates, has raised concerns about its viability despite its collaboration with Sanofi and substantial liquid assets. The abrupt halt in development and the lack of a clear path forward have led to a consensus of caution among analysts, with many maintaining a "hold" or "sell" rating on the stock.