Roland Rick Perry
November 26, 2016
Roland Rick Perry @ Institutional Analyst Inc.
Roland Rick Perry is the Managing Director of Institutional Analyst Inc. (IA).

Thanksgiving Food Fight at Immunomedics (IMMU).

We added Immunomedics (NASDAQ: IMMU ) $3.40  to the watch list  on September 15th @ $3.00 for reasons unrelated (but not totally unexpected) to today's news, that the venerable venBio  has launched a nasty food fight against husband and wife management team David Goldenberg  and Cynthia Sullivan  (the CSO and CEO) who are also holders of nearly half the board seats.

As for a mini-background on venBio , they noted in a press release related to closing of a $315 million round for Fund II  (whose investors included Amgen, Baxalta and Merck) that the two venBio strategic funds have invested in 14 companies to date, including: Cytos (now KURN), Aragon ( acquired  by J&J), Solstice, Labrys ( acquired  by Teva), Seragon ( acquired  by Roche/Genentech), Aurinia (NASDAQ: AUPH ), Heart Metabolics, Metacrine, Alexo, Precision Biosciences, Checkmate, Adheren, Apellis, and Nabriva (NASDAQ: NBRV )...these guys are good. Really good.

venBio, which owns 9.5 million shares  of Immunomedics or 9%, stated in a press release today  that missteps by the couple has torpedoed the Company's valuation and left them with no choice, but to take action  - in order to protect the best long-term interests of both stockholders (including their $30 million stake) and patients in desperate need of IMMU-132 treatment and of course, their track own record.

Our original thesis - as simply as we can put it and recall - was that:

A) the shares were down due to non-fundamental reason (see original write-up), as

B) it continues to release encouraging news with regards to unlocking the potential of IMMU-132 (which we call SacGovite), the Company's drug candidate for deadly and near impossible to treat triple negative breast cancer  and

C) a potential short-squeeze from a large short position of 19,372,632 shares, down from 22,840,120 shares short the day we added it to the watch list.

When we combined those three factors, put them in a Martini shaker and shook real hard, what poured out was a $12 price target. While we are not raising the price target, we now think this Martini will go down much faster than we originally anticipated.

Read about the food-fight here:  https://www.dropbox.com/s/s3o6s43ze20igo8/Report%20IMMU%202.pdf?dl=0 


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