What Does IGM Biosciences’ Newly Added Risk Factor Tell Us?

IGM Biosciences (IGMS) is a California-based biotechnology company developing treatments for cancer and infectious diseases like COVID-19. It has multiple drug candidates at various stages of development.

Let’s take a look at the company’s latest financial performance and risk factors.

IGM Biosciences’ Q2 Financial Results and 2021 Guidance

The company did not generate any sales in the second quarter. It reported a loss of $38.7 million, compared to a loss of $18.8 million in the same quarter last year. IGM Biosciences ended Q2 with $301.8 million in cash. The company reported a loss per share of $1.16 compared to the consensus expectation of a loss per share of $1.17.

For the full year 2021, the company anticipates its operating expenses to be in the range of $175 million – $185 million. It expects to end the year with $200 million in cash & investments. (See IGM Biosciences stock charts on TipRanks)

IGM Biosciences’ Risk Factors

The new TipRanks Risk Factors tool shows 73 risk factors for IGM Biosciences. Since December 2020, the company has updated its risk profile to introduce one new risk factor under Tech and Innovation category.

IGM Biosciences tells investors that it has entered into various intellectual property agreements with third parties. It says those agreements are important to its drug development candidates and to protecting its products. The company warns that it could lose its intellectual property rights or have to pay damages if it fails to comply with the terms of the agreements.

Tech and Innovation is IGM Biosciences’ top risk category, accounting for 33% of the total risks. That is above the sector average at 25%. IGM Biosciences’ shares have declined about 17% since the beginning of 2021.

Analysts’ Take

Wedbush analyst Robert Driscoll recently reiterated a Hold rating on IGM Biosciences stock and raised the price target to $82 from $77. Driscoll’s new price target suggests 12.54% percent upside potential.

Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average IGM Biosciences price target of $101.60 implies 39.45% upside potential to current levels.