Biogen acquisition has positive read for IGM Biosciences, says RBC Capital

After Biogen (BIIB) announced the acquisition of HI-Bio, whose lead asset felzartamab is a CD38 targeting antibody, RBC Capital said this provides additional support for a CD38-targeting approach for inflammatory disorders, which the firm calls “a positive” for IGM Biosciences (IGMS), which recently pivoted both imvotamab and ‘2664 into the immunology and inflammation, or I&I, space. The firm, which argues that Biogen’s acquisition of HI-Bio and its CD38 antibody for I&I “provides another vote of confidence in non-CAR-T cell B-cell depleting approaches,” believes IGM’s I&I potential is “widely underappreciated” and it keeps an Outperform rating and $20 price target on the shares.