IGM Biosciences downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded IGM Biosciences (IGMS) to Market Perform from Outperform with a price target of $2, down from $21, following the company’s strategic update, which included discontinuation of imvotamab and IGM-2644 in autoimmune diseases. Management noted data from Phase 1b studies evaluating imvotamab in patients with rheumatoid arthritis and systemic lupus erythematosus showed insufficient B cell depletion, the analyst tells investors in a research note. BMO says the update was surprising based on the mechanistic rationale of the TCE-CD20 approach “but speaks to the unpredictability” of T cell mediated approaches in cancer and autoimmune disease. It sees the stock trading at IGM’s cash following the update.