WALTHAM,
Mass. (AP) — Cancer drug
developer ImmunoGen Inc. said Tuesday that it has earned a $2 million milestone
payment after its partner in a licensing agreement, Bayer HealthCare Pharmaceuticals,
submitted an investigational new drug application.

The application was submitted for a compound, called BAY
94-9343, which is in development by Bayer HealthCare under an agreement with
ImmunoGen.

The agreement grants Bayer HealthCare exclusive rights to
use ImmunoGen’s maytansinoid TAP technology to develop anticancer treatments
that target mesothelin.

Under this agreement, ImmunoGen is entitled to receive
milestone payments potentially totaling up to $170.5 million for each resulting
product, plus royalties on sales

ImmunoGen President and CEO Daniel Junius said his company
expects five other TAP compounds to advance into clinical testing over the next
12 months, in addition to BAY 94-9343. Two of those five compounds are wholly
owned by ImmunoGen, while three others grew out of collaborations with other
companies.

ImmunoGen made the announcement after its shares fell 37
cents, or about 3.3 percent, to close at $10.89.