IGM Biosciences Undergoes Strategic Pivot to Autoimmune Diseases, Overhauls Leadership and Reduces Workforce

Strategic Pivot:
IGM Biosciences has shifted its focus from cancer to autoimmune diseases, prioritizing its T cell-engaging IgM antibodies for conditions like rheumatoid arthritis, systemic lupus erythematosus, and generalized myasthenia gravis.

Leadership Changes:
The company has appointed Mary Beth Harler, M.D., as the new CEO and a member of the Board of Directors, replacing Fred Schwarzer. Bruce Keyt, Ph.D., and Chris Takimoto, M.D., Ph.D., are stepping down from their roles as Chief Scientific Officer and Chief Medical Officer, respectively.

Workforce Reduction:
IGM is reducing its workforce and minimizing future spending on oncology-related projects, including aplitabart, to extend its cash runway into 2027.

Clinical Trials:
The company plans to initiate clinical trials for IGM-2644 in generalized myasthenia gravis by late 2024 and will share final data from the randomized clinical trial of aplitabart in second-line metastatic colorectal cancer in the future.

Financial Impact:
IGM's stock price dropped by 13.20% to $14.36 following the announcement of the strategic pivot.

Extended Cash Runway:
The company expects to extend its cash runway into 2027 as a result of the strategic changes.