Monday, March 7, 1994
In November, ImmunoGen Inc. decided to do a secondary instead
a PIPE because it thought it would do better with the former, raising more money
and taking less of a discount.
"How wrong we were," said Mitchel Sayare, IMGN's chairman and
CEO. "At the end of December we were told too many deals were trying to close
in the market overall and on the bankers' advice we delayed. It was during that
period that the market began to turn."
The company also ran into investors cautious about monoclonal
antibodies and cancer. "Both are areas in which there have been substantial
disappointments - and we combine them," he said. "Though we've hit our milestones,
people were more reserved."
The deal had a weak book, with a dominant institution that
set the price, leaving the bankers very little leverage, said Sayare. IMGN took
a 33 percent discount and raised $12.3 million.