IGM Biosciences Inc. (IGMS) announced a major shift in its strategy, pivoting its focus towards developing T cell-engaging IgM antibodies specifically for autoimmune diseases. This strategic transformation involves a significant reduction in spending on the company’s oncology programs, including aplitabart, and a corresponding workforce reduction.
The company’s decision to prioritize autoimmune diseases stems from its belief in the substantial opportunity within this therapeutic area. IGM’s lead candidates in this domain include imvotamab, which is currently being developed for rheumatoid arthritis, systemic lupus erythematosus, and myositis. Another promising candidate, IGM-2644, is expected to enter clinical trials for generalized myasthenia gravis by the end of 2024.
This strategic pivot comes on the heels of emerging data from the ongoing randomized clinical trial of aplitabart in second-line metastatic colorectal cancer. While the company awaits top-line progression-free survival results from this trial (anticipated by the end of the first quarter of 2025), the decision to minimize future spending on aplitabart and other oncology candidates highlights the company’s commitment to its new focus.
The company’s leadership team is also undergoing a significant change. Fred Schwarzer, CEO, President, and Director, and Bruce Keyt, chief scientific officer, will step down from their current roles. Mary Beth Harler, a seasoned executive from Bristol Myers Squibb & Co., has been appointed as the new CEO. Chris Takimoto, Chief Medical Officer, has also announced his departure.
These changes are expected to extend IGM’s cash runway into 2027, providing the company with the financial resources to aggressively pursue its new autoimmune disease-focused strategy.
In the stock market, IGMS shares experienced a downturn of 13.20% on Tuesday, closing at $14.36.
