ImmunoGen Receives Orphan Drug Status For Lung Cancer Drug

ImmunoGen Inc.'s (IMGN) lorvotuzumab mertasine received orphan-drug status as a treatment for small-cell lung cancer from the Food and Drug Administration.

Shares climbed on the news and were recently up 2.7% at $9.28.

The FDA designation provides an applicant seven years of market exclusivity and if a drug is approved. It also provides financial incentives to support development of the treatment. The European status, which the company is still awaiting from the European Commission, would give it 10 years of market exclusivity. Such programs create incentives for drugmakers to create treatments for rare ailments.

The announcement comes as company reported this month its latest-quarter loss widened as higher research expenses outpaced 2.8% revenue growth. Like many health companies, it sought to raise new funds this year, selling equity to do so.

Lorvotuzumab mertasine, one of several cancer medications the company has in the works, already has orphan drug status in the U.S. and European Union as a treatment for Merkel cell carcinoma, a rare skin cell cancer.

-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; [e-mail]