ImmunoGen Inc.'s (IMGN) lorvotuzumab mertasine received
orphan-drug status as a treatment for small-cell lung cancer from
the Food and Drug Administration.
Shares climbed on the news and were recently up 2.7% at
$9.28.
The FDA designation provides an applicant seven years of market
exclusivity and if a drug is approved. It also provides financial
incentives to support development of the treatment. The European
status, which the company is still awaiting from the European
Commission, would give it 10 years of market exclusivity. Such
programs create incentives for drugmakers to create treatments for
rare ailments.
The announcement comes as company reported this month its
latest-quarter loss widened as higher research expenses outpaced
2.8% revenue growth. Like many health companies, it sought to raise
new funds this year, selling equity to do so.
Lorvotuzumab mertasine, one of several cancer medications the
company has in the works, already has orphan drug status in the
U.S. and European Union as a treatment for Merkel cell carcinoma, a
rare skin cell cancer.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com