ImmunoGen sucks up the cost of novelty value

The clinical disappointment for Hoffman-La Roche's Kadcyla (trastuzumab emtansine) in December 2014 has forced Boston-based ImmunoGen, which licenses the toxin and linker of Kadcyla to Roche, into an expensive $200m deal on its near-term royalties on Kadcyla for cash to maintain R&D spending. Under the deal, ImmunoGen will receive the cash in early April 2015 from TPG Special Situations Partners (TSSP), a specialist finance house, and then will see nothing of the Kadcyla royalty stream until TSSP has received at least $235m (if the royalties flow in) or $260m (if it's a trickle).