Immunogen (IMGN) 10-Q8 May 152015 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Mar. 31, 2015	Apr. 30, 2015
Document and Entity Information
Entity Registrant Name	IMMUNOGEN INC
Entity Central Index Key	855654
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-24
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		86,185,057
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Jun. 30, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
ASSETS
Cash and cash equivalents	$111,827	$142,261
Accounts receivable	754	1,896
Unbilled revenue	536	1,329
Inventory	2,702	2,950
Prepaid and other current assets	3,309	2,320
Total current assets	119,128	150,756
Property and equipment, net of accumulated depreciation	14,631	14,349
Other assets	43	213
Total assets	133,802	165,318
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	6,322	4,819
Accrued compensation	7,171	6,865
Other accrued liabilities	7,693	6,668
Current portion of deferred lease incentive	646	528
Current portion of deferred revenue	980	2,374
Total current liabilities	22,812	21,254
Deferred lease incentive, net of current portion	6,462	5,679
Deferred revenue, net of current portion	40,917	58,969
Other long-term liabilities	3,941	3,717
Total liabilities	74,132	89,619
Commitments and contingencies (Note E)
Shareholders' equity:
Preferred stock, $0.01 par value; authorized 5,000 shares; no shares issued and outstanding
Common stock, $0.01 par value; authorized 150,000 shares; issued and outstanding 86,134 and 85,903 shares as of March 31, 2015 and June 30, 2014, respectively	861	859
Additional paid-in capital	737,205	722,971
Accumulated deficit	-678,396	-648,131
Total shareholders' equity	59,670	75,699
Total liabilities and shareholders' equity	$133,802	$165,318

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Jun. 30, 2014
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, authorized shares	5,000	5,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, authorized shares	150,000	150,000
Common stock, issued shares	86,134	85,903
Common stock, outstanding shares	86,134	85,903

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Revenues:
License and milestone fees	$5,078	$305	$52,729	$39,150
Royalty revenue	5,099	2,558	13,890	6,946
Research and development support	532	1,948	2,140	5,860
Clinical materials revenue	718	2,064	4,171	2,197
Total revenues	11,427	6,875	72,930	54,153
Operating Expenses:
Research and development	25,666	38,280	81,331	81,171
General and administrative	7,000	6,040	20,967	18,013
Total operating expenses	32,666	44,320	102,298	99,184
Loss from operations	-21,239	-37,445	-29,368	-45,031
Other (expense) income, net	-379	-7	-897	166
Net loss	-21,618	-37,452	-30,265	-44,865
Basic and diluted net loss per common share (in dollars per share)	($0.25)	($0.44)	($0.35)	($0.53)
Basic and diluted weighted average common shares outstanding (in shares)	86,080	85,684	85,962	85,375
Total comprehensive loss	($21,618)	($37,452)	($30,265)	($44,865)

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($30,265)	($44,865)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	4,231	3,428
(Gain) loss on sale/disposal of fixed assets	-7	20
Gain on forward contracts		-2
Non-cash licensing fee		12,830
Stock and deferred share unit compensation	12,804	12,395
Deferred rent	161	92
Changes in operating assets and liabilities:
Accounts receivable	1,142	-36
Unbilled revenue	793	134
Inventory	248	-1,781
Prepaid and other current assets	-467	-613
Other assets	170	-113
Accounts payable	1,503	245
Accrued compensation	306	243
Other accrued liabilities	639	-84
Deferred revenue, net of non-cash upfront license payment	-19,446	-16,849
Proceeds from landlord for tenant improvements	1,350	227
Net cash used for operating activities	-26,838	-34,729
Cash flows from investing activities:
Purchases of property and equipment	-4,506	-4,711
Payments for transaction costs related to sale of future royalties	-522
Payments (proceeds) from settlement of forward contracts		-1
Net cash used for investing activities	-5,028	-4,712
Cash flows from financing activities:
Proceeds from stock options exercised	1,432	8,557
Net cash provided by financing activities	1,432	8,557
Net change in cash and cash equivalents	-30,434	-30,884
Cash and cash equivalents, beginning balance	142,261	194,960
Cash and cash equivalents, ending balance	$111,827	$164,076

Summary_of_Significant_Account

Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2015

Summary of Significant Accounting Policies

A.Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements at March 31, 2015 and June 30, 2014 and for the three and nine months ended March 31, 2015 and 2014 include the accounts of ImmunoGen, Inc., or the Company, and its wholly owned subsidiaries, ImmunoGen Securities Corp., ImmunoGen Europe Limited and Hurricane, LLC. The consolidated financial statements include all of the adjustments, consisting only of normal recurring adjustments, which management considers necessary for a fair presentation of the Company’s financial position in accordance with accounting principles generally accepted in the U.S. for interim financial information. Certain information and footnote disclosures normally included in the Company’s annual financial statements have been condensed or omitted. The preparation of interim financial statements requires the use of management’s estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements and the reported amounts of revenues and expenditures during the reported periods. The results of the interim periods are not necessarily indicative of the results for the entire year. Accordingly, the interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2014.

Subsequent Events

The Company has evaluated all events or transactions that occurred after March 31, 2015 up through the date the Company issued these financial statements. In March 2015, the Company entered into a royalty purchase agreement with Immunity Royalty Holdings, L.P., which closed on April 3, 2015, pursuant to which Immunity Royalty Holdings purchased the Company’s right to receive 100% of the royalty payments on commercial sales of Kadcyla® arising under our License Agreement with Genentech, Inc. dated as of May 2, 2000, as amended, until Immunity Royalty Holdings has received aggregate Kadcyla royalties equal to $235 million or $260 million, depending on when the aggregate Kadcyla royalties received by Immunity Royalty Holdings reach a specified milestone. Once the applicable threshold is met, if ever, the Company will thereafter receive 85% and Immunity Royalty Holdings will receive 15% of the Kadcyla royalties for the remaining royalty term. At consummation of the transaction in April 2015, the Company received cash proceeds of $200 million. The Company expects to record these cash proceeds as a deferred royalty obligation liability which will be amortized over the expected royalty recovery period. As part of this transaction, the Company incurred approximately $5.7 million in transaction costs. The Company did not have any other material recognizable or unrecognizable subsequent events during this period.

Revenue Recognition

The Company enters into licensing and development agreements with collaborative partners for the development of monoclonal antibody-based anticancer therapeutics. The terms of these agreements contain multiple deliverables which may include (i) licenses, or options to obtain licenses, to the Company’s antibody-drug conjugate, or ADC, technology, (ii) rights to future technological improvements, (iii) research activities to be performed on behalf of the collaborative partner, (iv) delivery of cytotoxic agents and (v) the manufacture of preclinical or clinical materials for the collaborative partner. Payments to the Company under these agreements may include upfront fees, option fees, exercise fees, payments for research activities, payments for the manufacture of preclinical or clinical materials, payments based upon the achievement of certain milestones and royalties on product sales. The Company follows the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 605-25, “Revenue Recognition—Multiple-Element Arrangements,” and ASC Topic 605-28, “Revenue Recognition—Milestone Method,” in accounting for these agreements. In order to account for these agreements, the Company must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has stand-alone value to the collaborator. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units.

At March 31, 2015, the Company had the following two types of agreements with the parties identified below:

Development and commercialization licenses, which provide the party with the right to use the Company’s ADC technology and/or certain other intellectual property to develop compounds to a specified antigen target:

Amgen (four exclusive single-target licenses(1))

Bayer HealthCare (one exclusive single-target license)

Biotest (one exclusive single-target license)

Lilly (three exclusive single-target licenses)

Novartis (five exclusive single-target licenses and one license to two related targets: one target on an exclusive basis and the second target on a non-exclusive basis)

Roche, through its Genentech unit (five exclusive single-target licenses)

Sanofi (one exclusive single-target license and one exclusive license to multiple individual targets)

-1

Amgen has sublicensed one of its exclusive single-target licenses to Oxford BioTherapeutics Ltd.

Research license/option agreement for a defined period of time to secure development and commercialization licenses to use the Company’s ADC technology to develop anticancer compounds to specified targets on established terms (referred to herein as right-to-test agreements):

Sanofi

CytomX

Takeda, through its wholly owned subsidiary, Millennium Pharmaceuticals, Inc.

There are no performance, cancellation, termination or refund provisions in any of the arrangements that contain material financial consequences to the Company.

Development and Commercialization Licenses

The deliverables under a development and commercialization license agreement generally include the license to the Company’s ADC technology with respect to a specified antigen target, and may also include deliverables related to rights to future technological improvements, research activities to be performed on behalf of the collaborative partner and the manufacture of preclinical or clinical materials for the collaborative partner.

Generally, development and commercialization licenses contain non-refundable terms for payments and, depending on the terms of the agreement, provide that the Company will (i) at the collaborator’s request, provide research services at negotiated prices which are generally consistent with what other third parties would charge, (ii) at the collaborator’s request, manufacture and provide to it preclinical and clinical materials or deliver cytotoxic agents at negotiated prices which are generally consistent with what other third parties would charge, (iii) earn payments upon the achievement of certain milestones and (iv) earn royalty payments, generally until the later of the last applicable patent expiration or 10 to 12 years after product launch. In the case of Kadcyla, however, the royalty term, on a country-by-country basis, is 10 years after product launch, which may be extended an additional two years, for a maximum royalty term of 12 years, depending on patent protection as of the end of the initial 10-year royalty term. Royalty rates may vary over the royalty term depending on the Company’s intellectual property rights and/or the presence of comparable competing products. The Company may provide technical assistance and share any technology improvements with its collaborators during the term of the collaboration agreements. The Company does not directly control when or whether any collaborator will request research or manufacturing services, achieve milestones or become liable for royalty payments. As a result, the Company cannot predict when or if it will recognize revenues in connection with any of the foregoing.

In determining the units of accounting, management evaluates whether the license has stand-alone value from the undelivered elements to the collaborative partner based on the consideration of the relevant facts and circumstances for each arrangement. Factors considered in this determination include the research capabilities of the partner and the availability of ADC technology research expertise in the general marketplace. If the Company concludes that the license has stand-alone value and therefore will be accounted for as a separate unit of accounting, the Company then determines the estimated selling prices of the license and all other units of accounting based on market conditions, similar arrangements entered into by third parties, and entity-specific factors such as the terms of the Company’s previous collaborative agreements, recent preclinical and clinical testing results of therapeutic products that use the Company’s ADC technology, the Company’s pricing practices and pricing objectives, the likelihood that technological improvements will be made, and, if made, will be used by the Company’s collaborators and the nature of the research services to be performed on behalf of its collaborators and market rates for similar services.

Upfront payments on development and commercialization licenses are deferred if facts and circumstances dictate that the license does not have stand-alone value. Prior to the adoption of Accounting Standards Update (ASU) No. 2009-13, “Revenue Arrangements with Multiple Deliverables” on July 1, 2010, the Company determined that its licenses lacked stand-alone value and were combined with other elements of the arrangement and any amounts associated with the license were deferred and amortized over a certain period, which the Company refers to as the Company’s period of substantial involvement. The determination of the length of the period over which to defer revenue is subject to judgment and estimation and can have an impact on the amount of revenue recognized in a given period. Historically the Company’s involvement with the development of a collaborator’s product candidate has been significant at the early stages of development, and lessens as it progresses into clinical trials. Also, as a drug candidate gets closer to commencing pivotal testing the Company’s collaborators have sought an alternative site to manufacture their products, as the Company’s facility does not produce pivotal or commercial drug product. Accordingly, the Company generally estimates this period of substantial involvement to begin at the inception of the collaboration agreement and conclude at the end of non-pivotal Phase II testing. The Company believes this period of substantial involvement is, depending on the nature of the license, on average six and one-half years. Quarterly, the Company reassesses its periods of substantial involvement over which the Company amortizes its upfront license fees and makes adjustments as appropriate. In the event a collaborator elects to discontinue development of a specific product candidate under a development and commercialization license, but retains its right to use the Company’s technology to develop an alternative product candidate to the same target or a target substitute, the Company would cease amortization of any remaining portion of the upfront fee until there is substantial preclinical activity on another product candidate and its remaining period of substantial involvement can be estimated. In the event that a development and commercialization license were to be terminated, the Company would recognize as revenue any portion of the upfront fee that had not previously been recorded as revenue, but was classified as deferred revenue, at the date of such termination.

Subsequent to the adoption of ASU No. 2009-13, the Company determined that its research licenses lack stand-alone value and are considered for aggregation with the other elements of the arrangement and accounted for as one unit of accounting.

Upfront payments on development and commercialization licenses may be recognized upon delivery of the license if facts and circumstances dictate that the license has stand-alone value from the undelivered elements, which generally include rights to future technological improvements, research services, delivery of cytotoxic agents and the manufacture of preclinical and clinical materials.

The Company recognizes revenue related to research services that represent separate units of accounting as they are performed, as long as there is persuasive evidence of an arrangement, the fee is fixed or determinable, and collection of the related receivable is probable. The Company recognizes revenue related to the rights to future technological improvements over the estimated term of the applicable license.

The Company may also provide cytotoxic agents to its collaborators or produce preclinical and clinical materials at negotiated prices which are generally consistent with what other third parties would charge. The Company recognizes revenue on cytotoxic agents and on preclinical and clinical materials when the materials have passed all quality testing required for collaborator acceptance and title and risk of loss have transferred to the collaborator. Arrangement consideration allocated to the manufacture of preclinical and clinical materials in a multiple-deliverable arrangement is below the Company’s full cost, and the Company’s full cost is not expected to ever be below its contract selling prices for its existing collaborations. During the nine months ended March 31, 2015 and 2014, the difference between the Company’s full cost to manufacture preclinical and clinical materials on behalf of its collaborators as compared to total amounts received from collaborators for the manufacture of preclinical and clinical materials was $8.7 million and $1.6 million, respectively. The majority of the Company’s costs to produce these preclinical and clinical materials are fixed and then allocated to each batch based on the number of batches produced during the period. Therefore, the Company’s costs to produce these materials are significantly impacted by the number of batches produced during the period. The volume of preclinical and clinical materials the Company produces is directly related to the number of clinical trials the Company and its collaborators are preparing for or currently have underway, the speed of enrollment in those trials, the dosage schedule of each clinical trial and the time period such trials last. Accordingly, the volume of preclinical and clinical materials produced, and therefore the Company’s per-batch costs to manufacture these preclinical and clinical materials, may vary significantly from period to period.

The Company may also produce research material for potential collaborators under material transfer agreements. Additionally, the Company performs research activities, including developing antibody specific conjugation processes, on behalf of its collaborators and potential collaborators during the early evaluation and preclinical testing stages of drug development. The Company records amounts received for research materials produced or services performed as a component of research and development support revenue. The Company also develops conjugation processes for materials for later-stage testing and commercialization for certain collaborators. The Company is compensated at negotiated rates and may receive milestone payments for developing these processes which are recorded as a component of research and development support revenue.

The Company’s development and commercialization license agreements have milestone payments which for reporting purposes are aggregated into three categories: (i) development milestones, (ii) regulatory milestones, and (iii) sales milestones. Development milestones are typically payable when a product candidate initiates or advances into different clinical trial phases. Regulatory milestones are typically payable upon submission for marketing approval with the U.S. Food and Drug Administration, or FDA, or other countries’ regulatory authorities or on receipt of actual marketing approvals for the compound or for additional indications. Sales milestones are typically payable when annual sales reach certain levels.

At the inception of each agreement that includes milestone payments, the Company evaluates whether each milestone is substantive and at risk to both parties on the basis of the contingent nature of the milestone. This evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the entity’s performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, (b) the consideration relates solely to past performance and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. The Company evaluates factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone, the level of effort and investment required to achieve the respective milestone and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement in making this assessment.

Non-refundable development and regulatory milestones that are expected to be achieved as a result of the Company’s efforts during the period of substantial involvement are considered substantive and are recognized as revenue upon the achievement of the milestone, assuming all other revenue recognition criteria are met. Milestones that are not considered substantive because we do not contribute effort to the achievement of such milestones are generally achieved after the period of substantial involvement and are recognized as revenue upon achievement of the milestone, as there are no undelivered elements remaining and no continuing performance obligations, assuming all other revenue recognition criteria are met.

Under the Company’s development and commercialization license agreements, the Company receives royalty payments based upon its licensees’ net sales of covered products. Generally, under these agreements the Company is to receive royalty reports and payments from its licensees approximately one quarter in arrears, that is, generally in the third month of the quarter after the licensee has sold the royalty-bearing product or products. The Company recognizes royalty revenues when it can reliably estimate such amounts and collectability is reasonably assured. As such, the Company generally recognizes royalty revenues in the quarter reported to the Company by its licensees, or one quarter following the quarter in which sales by the Company’s licensees occurred.

Right-to-Test Agreements

The Company’s right-to-test agreements provide collaborators the right to (a) test the Company’s ADC technology for a defined period of time through a research, or right-to-test, license, (b) take a defined number of options, for a defined period of time, to specified targets and (c) upon exercise an option, secure or “take” a license to develop and commercialize products for the specified targets on established terms. Under these agreements, fees may be due to the Company (i) at the inception of the arrangement (referred to as “upfront” fees or payments), (ii) upon taking an option with respect to a specific target (referred to as option fees or payments earned, if any, when the option is “taken”), (iii) upon the exercise of a previously taken option to acquire a development and commercialization license(s) (referred to as exercise fees or payments earned, if any, when the development and commercialization license is “taken”), or (iv) some combination of all of these fees.

The accounting for right-to-test agreements is dependent on the nature of the options granted to the collaborative partner. Options are considered substantive if, at the inception of a right-to-test agreement, the Company is at risk as to whether the collaborative partner will choose to exercise the options to secure development and commercialization licenses. Factors that are considered in evaluating whether options are substantive include the overall objective of the arrangement, the benefit the collaborator might obtain from the agreement without exercising the options, the cost to exercise the options relative to the total upfront consideration, and the additional financial commitments or economic penalties imposed on the collaborator as a result of exercising the options.

For right-to-test agreements where the options to secure development and commercialization licenses to the Company’s ADC technology are considered substantive, the Company does not consider the development and commercialization licenses to be a deliverable at the inception of the agreement. For those right-to-test agreements entered into prior to the adoption of ASU No. 2009-13 where the options to secure development and commercialization licenses are considered substantive, the Company has deferred the upfront payments received and recognizes this revenue over the period during which the collaborator could elect to take options for development and commercialization licenses. These periods are specific to each collaboration agreement. If a collaborator takes an option to acquire a development and commercialization license under these agreements, any substantive option fee is deferred and recognized over the life of the option, generally 12 to 18 months. If a collaborator exercises an option and takes a development and commercialization license to a specific target, the Company attributes the exercise fee to the development and commercialization license. Upon exercise of an option to acquire a development and commercialization license, the Company would also attribute any remaining deferred option fee to the development and commercialization license and apply the multiple-element revenue recognition criteria to the development and commercialization license and any other deliverables to determine the appropriate revenue recognition, which will be consistent with the Company’s accounting policy for upfront payments on single-target licenses. In the event a right-to-test agreement were to be terminated, the Company would recognize as revenue any portion of the upfront fee that had not previously been recorded as revenue, but was classified as deferred revenue, at the date of such termination. None of the Company’s right-to-test agreements entered into subsequent to the adoption of ASU No. 2009-13 has been determined to contain substantive options.

For right-to-test agreements where the options to secure development and commercialization licenses to the Company’s ADC technology are not considered substantive, the Company considers the development and commercialization licenses to be a deliverable at the inception of the agreement and applies the multiple-element revenue recognition criteria to determine the appropriate revenue recognition. None of the Company’s right-to-test agreements entered into prior to the adoption of ASU No. 2009-13 has been determined to contain non-substantive options.

The Company does not directly control when or if any collaborator will exercise its options for development and commercialization licenses. As a result, the Company cannot predict when or if it will recognize revenues in connection with any of the foregoing.

Fair Value of Financial Instruments

Fair value is defined under ASC Topic 820, “Fair Value Measurements and Disclosures,” as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy to measure fair value which is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

As of March 31, 2015, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015 (in thousands):

Fair Value Measurements at March 31, 2015 Using

Quoted Prices in

Significant Other

Significant

Active Markets for

Observable Inputs

Unobservable

Identical Assets

Inputs

Total

(Level 1)

(Level 2)

(Level 3)

Cash and cash equivalents

111,827

—

As of June 30, 2014, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2014 (in thousands):

Fair Value Measurements at June 30, 2014 Using

Quoted Prices in

Significant Other

Significant

Active Markets for

Observable Inputs

Unobservable

Identical Assets

Inputs

Total

(Level 1)

(Level 2)

(Level 3)

Cash, cash equivalents and restricted cash

142,261

—

The fair value of the Company’s cash equivalents is based primarily on quoted prices from active markets.

Unbilled Revenue

The majority of the Company’s unbilled revenue at March 31, 2015 and June 30, 2014 represents research funding earned prior to those dates based on actual resources utilized under the Company’s agreements with various collaborators.

Inventory

Inventory costs relate to clinical trial materials being manufactured for sale to the Company’s collaborators. Inventory is stated at the lower of cost or market as determined on a first-in, first-out (FIFO) basis.

Inventory at March 31, 2015 and June 30, 2014 is summarized below (in thousands):

March 31,

June 30,

2015

2014

Raw materials

353

437

Work in process

2,349

2,513

Total

2,702

2,950

Raw materials inventory consists entirely of DM1 and DM4, proprietary cell-killing agents the Company developed as part of its ADC technology. The Company considers more than a twelve month supply of raw materials that is not supported by firm, fixed orders and/or projections from its collaborators to be excess and establishes a reserve to reduce to zero the value of any such excess raw material inventory with a corresponding charge to research and development expense. In accordance with this policy, the Company recorded $434,000 and $236,000 of expense related to excess inventory during the nine-month periods ended March 31, 2015 and 2014, respectively. The Company recorded $42,000 and $32,000 of expense related to excess inventory during the three-month periods ended March 31, 2015 and 2014, respectively.

Work in process inventory consists of conjugate manufactured for sale to the Company’s collaborators to be used in preclinical and clinical studies. All conjugate is made to order at the request of the collaborators and subject to the terms and conditions of respective supply agreements. As such, no reserve for work in process inventory is required.

Computation of Net Loss per Common Share

Basic and diluted net loss per share is calculated based upon the weighted average number of common shares outstanding during the period. During periods of income, participating securities are allocated a proportional share of income determined by dividing total weighted average participating securities by the sum of the total weighted average common shares and participating securities (the “two-class method”). Shares of the Company’s restricted stock participate in any dividends declared by the Company and are therefore considered to be participating securities. Participating securities have the effect of diluting both basic and diluted earnings per share during periods of income. During periods of loss, no loss is allocated to participating securities since they have no contractual obligation to share in the losses of the Company. The impact of applying the two-class method was not material. Diluted (loss) income per share is computed after giving consideration to the dilutive effect of stock options that are outstanding during the period, except where such non-participating securities would be anti-dilutive. Securities which were considered anti-dilutive and which could potentially dilute basic earnings per share in the future were as follows:

March 31,

2015

2014

Options outstanding to purchase common stock and unvested restricted stock

10,158

8,605

Stock-Based Compensation

As of March 31, 2015, the Company is authorized to grant future awards under one employee share-based compensation plan, which is the ImmunoGen, Inc. 2006 Employee, Director and Consultant Equity Incentive Plan, or the 2006 Plan. At the annual meeting of shareholders on November 11, 2014, an amendment to the 2006 Plan was approved and an additional 5,500,000 shares were authorized for issuance under this plan. As amended, the 2006 Plan provides for the issuance of Stock Grants, the grant of Options and the grant of Stock-Based Awards for up to 17,500,000 shares of the Company’s common stock, as well as 1,676,599 shares of common stock which represent awards granted under the previous stock option plan, the ImmunoGen, Inc. Restated Stock Option Plan, or the Former Plan, that were forfeited, expired or were cancelled without delivery of shares of common stock or which resulted in the forfeiture of shares of common stock back to the Company between November 11, 2006 and June 30, 2014. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant. Options vest at various periods of up to four years and may be exercised within ten years of the date of grant.

The stock-based awards are accounted for under ASC Topic 718, “Compensation—Stock Compensation.” Pursuant to Topic 718, the estimated grant date fair value of awards is charged to the statement of operations and comprehensive loss over the requisite service period, which is the vesting period. Such amounts have been reduced by an estimate of forfeitures of all unvested awards. The fair value of each stock option is estimated on the date of grant using the Black-Scholes option-pricing model with the assumptions noted in the following table. As the Company has not paid dividends since inception, nor does it expect to pay any dividends for the foreseeable future, the expected dividend yield assumption is zero. Expected volatility is based exclusively on historical volatility data of the Company’s stock. The expected term of stock options granted is based exclusively on historical data and represents the period of time that stock options granted are expected to be outstanding. The expected term is calculated for and applied to one group of stock options as the Company does not expect substantially different exercise or post-vesting termination behavior among its option recipients. The risk-free rate of the stock options is based on the U.S. Treasury rate in effect at the time of grant for the expected term of the stock options.

Three Months Ended

Nine Months Ended

March 31,

2015

2014

2015

2014

Dividend

None

Volatility

60.76

60.44

60.46

60.44

Risk-free interest rate

1.67

1.94

1.86

1.74

Expected life (years)

6.3

Using the Black-Scholes option-pricing model, the weighted average grant date fair values of options granted during the three months ended March 31, 2015 and 2014 were $3.83 and $9.52 per share, respectively, and $6.06 and $10.54 per share for options granted during the nine months ended March 31, 2015 and 2014, respectively.

Stock compensation expense related to stock options and restricted stock awards granted under the 2006 Plan was $3.6 million and $12.5 million during the three and nine months ended March 31, 2015, respectively, compared to stock compensation expense of $3.7 million and $12.1 million for the three and nine months ended March 31, 2014, respectively. As of March 31, 2015, the estimated fair value of unvested employee awards was $22.3 million, net of estimated forfeitures. The weighted-average remaining vesting period for these awards is approximately two years.

During the nine months ended March 31, 2015, holders of options issued under the Company’s equity plans exercised their rights to acquire an aggregate of approximately 205,000 shares of common stock at prices ranging from $3.19 to $9.88 per share. The total proceeds to the Company from these option exercises were approximately $1.4 million.

Financial Instruments and Concentration of Credit Risk

The Company’s cash equivalents consist of money market funds with underlying investments primarily being U.S. Government-issued securities and high quality, short-term commercial paper. All of the Company’s cash and cash equivalents are maintained with three financial institutions in the U.S. The Company uses a Euro-denominated bank account to manage the foreign currency exposures that exist as part of our ongoing business operations. Our foreign currency risk management strategy is principally designed to mitigate the future potential financial impact of changes in the value of transactions, anticipated transactions and balances denominated in foreign currency, resulting from changes in foreign currency exchange rates.

Segment Information

During the nine months ended March 31, 2015, the Company continued to operate in one operating segment which is the business of discovery of monoclonal antibody-based anticancer therapeutics.

The percentages of revenues recognized from significant customers of the Company in the three and nine months ended March 31, 2015 and 2014 are included in the following table:

Three Months Ended

Nine Months Ended

March 31,

Collaborative Partner:

2015

2014

2015

2014

Biotest

Lilly

Novartis

Roche

There were no other customers of the Company with significant revenues in the three and nine months ended March 31, 2015 and 2014.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update 2014-9, Revenue from Contracts with Customers (Topic 606), to clarify the principles for recognizing revenue. This update provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance is effective for annual reporting beginning after December 15, 2016, including interim periods within the year of adoption, and allows for either full retrospective or modified retrospective application, with early adoption not permitted. Accordingly, the standard is effective for the Company on July 1, 2017. The Company is currently evaluating the adoption method it will apply and the impact that this guidance will have on its consolidated financial statements and related disclosures.

In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This new standard gives a company’s management the final responsibilities to decide whether there’s substantial doubt about the company’s ability to continue as a going concern and to provide related footnote disclosures. The standard provides guidance to management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that companies commonly provide in their footnotes. Under the new standard, management must decide whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued, or within one year after the date that the financial statements are available to be issued when applicable. This guidance is effective for annual reporting beginning after December 15, 2016, including interim periods within the year of adoption, with early application permitted. Accordingly, the standard is effective for the Company on July 1, 2017. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In April 2015, the FASB issued Accounting Standards Update 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. To simplify presentation of debt issuance costs, this new standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. This guidance is effective for annual reporting beginning after December 15, 2015, including interim periods within the year of adoption, and calls for retrospective application, with early application permitted. Accordingly, the standard is effective for the Company on July 1, 2016. The Company is currently evaluating the impact that this guidance will have on the Company’s consolidated financial statements.

Collaborative_Agreements

Collaborative Agreements	9 Months Ended
Collaborative Agreements	Mar. 31, 2015
Collaborative Agreements
Collaborative Agreements
	B.Collaborative Agreements

	Roche

	In May 2000, the Company granted Genentech, now a unit of Roche, an exclusive license to use the Company’s maytansinoid ADC technology with antibodies, such as trastuzumab, or other proteins that target HER2. Under the terms of this agreement, Roche has exclusive worldwide rights to develop and commercialize maytansinoid ADC compounds targeting HER2. The ADC marketed by Roche as Kadcyla was developed under this agreement. Roche is responsible for the manufacturing, product development and marketing of Kadcyla and any other products resulting from the agreement. The Company received a $2 million non-refundable upfront payment from Roche upon execution of the agreement. The Company is also entitled to receive up to a total of $44 million in milestone payments, plus royalties on the commercial sales of Kadcyla or any other resulting products. Total milestones are categorized as follows: development milestones—$13.5 million; and regulatory milestones—$30.5 million. Through March 31, 2015, the Company has received and recognized $13.5 million and $20.5 million in development and regulatory milestone payments, respectively, related to Kadcyla, including two $5 million regulatory milestone payments in connection with marketing approval of Kadcyla in Japan and in the EU. Based on an evaluation of the effort contributed to the achievement of these milestones, the Company determined these milestones were not substantive. In consideration that there were no undelivered elements remaining, no continuing performance obligations and all other revenue recognition criteria had been met, the Company recognized the $10 million non-refundable payments as revenue upon achievement of the milestones, which is included in license and milestone fees for the nine months ended March 31, 2014. The next potential milestone the Company will be entitled to receive will be a $5 million regulatory milestone for marketing approval of Kadcyla for a first extended indication as defined in the agreement. Based on an evaluation of the effort contributed towards the achievement of this future milestone, the Company determined this milestone is not substantive.

	The Company receives royalty reports and payments related to sales of Kadcyla from Roche one quarter in arrears. In accordance with the Company’s revenue recognition policy, $5.1 million of royalties on net sales of Kadcyla for the three-month period ended December 31, 2014 were recorded and included in royalty revenue for the three months ended March 31, 2015 and $13.9 million of royalties on net sales of Kadcyla for the nine-month period ended December 31, 2014 were included in royalty revenue for the nine months ended March 31, 2015 compared to $2.6 million of royalties on net sales of Kadcyla for the three-month period ended December 31, 2013 which is included in royalty revenue for the three months ended March 31, 2014 and $6.9 million of royalties on net sales of Kadcyla for the nine-month period ended December 31, 2013 which is included in royalty revenue for the nine months ended March 31, 2014.

	Amgen

	Under a now-expired right-to-test agreement, in September 2009, November 2009 and December 2012, Amgen took three exclusive development and commercialization licenses, for which the Company received an exercise fee of $1 million for each license taken. In May 2013, Amgen took one non-exclusive development and commercialization license, for which the Company received an exercise fee of $500,000. In October 2013, the non-exclusive license was amended and converted to an exclusive license, for which Amgen paid an additional $500,000 fee to the Company. Amgen has sublicensed its rights under this license to Oxford BioTherapeutics Ltd. For each development and commercialization license taken, the Company is entitled to receive up to a total of $34 million in milestone payments, plus royalties on the commercial sales of any resulting products. The total milestones per license are categorized as follows: development milestones—$9 million; regulatory milestones—$20 million; and sales milestones—$5 million. Amgen (or its sublicensee(s)) is responsible for the manufacturing, product development and marketing of any products resulting from these development and commercialization licenses.

	Since a deliverable to the original right-to-test agreement was determined to be materially modified at the time the non-exclusive license was converted to exclusive in October 2013, the Company accounted for the multiple-element agreement in accordance with ACS 605-25 (as amended by ASU No. 2009-13). As a result, all of the deferred revenue recorded on the date of the modification and the new consideration received as part of the modification was allocated to all of the remaining deliverables at the time of amendment of the right-to-test agreement based on the estimated selling price of each element. The remaining amount represents consideration for previously delivered elements and was recognized upon the execution of the modification.

	The outstanding licenses, including the exclusive license delivered upon the signing of the amendment, contain the rights to future technological improvements as well as options to purchase materials and research and development services. The Company concluded that additional materials and research and development services would be paid at a contractual price equal to the estimated selling price based estimated prices that would be charged by third parties for similar services. The estimated selling price of the right to technological improvements is the Company’s best estimate of selling price and was determined by estimating the probability that technological improvements will be made and the probability that such technological improvements made will be used by Amgen. In estimating these probabilities, we considered factors such as the technology that is the subject of the development and commercialization licenses, our history of making technological improvements, and when such improvements, if any, were likely to occur relative to the stage of development of any product candidates pursuant to the development and commercialization licenses. The Company’s estimate of probability considered the likely period of time that any improvements would be utilized, which was estimated to be ten years following delivery of a commercialization and development license. The value of any technological improvements made available after this ten year period was considered to be de minimis due to the significant additional costs that would be incurred to incorporate such technology into any existing product candidates. The estimate of probability was multiplied by the estimated selling price of the development and commercialization licenses and the resulting cash flow was discounted at a rate of 13%, representing the Company’s estimate of its cost of capital at the time of amendment of the right-to-test agreement.

	The $430,000 determined to be the estimated selling price of the future technological improvements is being recognized as revenue ratably over the period the Company is obligated to make available any technological improvements, which is equivalent to the estimated term of the agreement. The Company estimates the term of a development and commercialization license to be approximately 25 years, which reflects management’s estimate of the time necessary to develop and commercialize products pursuant to the license plus the estimated royalty term. The Company reassesses the estimated term at the end of each reporting period.

	After accounting for the undelivered elements at the estimated selling price, the Company had $2.2 million of remaining allocable consideration which was determined to represent consideration for the previously delivered elements, including the exclusive license that was delivered upon the execution of the modification. This amount was recorded as revenue and is included in license and milestone fees for the nine months ended March 31, 2014.

	In November 2011, the IND applications to the FDA for two compounds, AMG 595 and AMG 172, developed under the 2009 development and commercialization licenses became effective, which triggered two $1 million milestone payments to the Company. The next potential milestone the Company will be entitled to receive for each of these compounds under the 2009 development and commercialization licenses will be a development milestone for the first dosing of a patient in a Phase II clinical trial, which will result in a $3 million payment being due. The next potential milestones the Company will be entitled to receive under the December 2012 and May 2013 development and commercialization licenses will be a $1 million development milestone for an IND becoming effective. At the time of execution of each of these development and commercialization licenses, there was significant uncertainty as to whether these milestones would be achieved. In consideration of this, as well as the Company’s past involvement in the research and manufacturing of these product candidates, these milestones were deemed substantive.

	Sanofi

	In July 2003, the Company entered into a broad collaboration agreement with Sanofi (formerly Aventis) to discover, develop and commercialize antibody-based products. The collaboration agreement provides Sanofi with worldwide development and commercialization rights to new antibody-based products directed to targets that are included in the collaboration, including the exclusive right to use the Company’s maytansinoid ADC technology in the creation of products developed to these targets. The product candidates (targets) as of March 31, 2015 in the collaboration include SAR650984 (CD38), SAR566658 (CA6), SAR408701 (CEACAM5) and one earlier-stage compound.

	The Company is entitled to receive milestone payments potentially totaling $21.5 million, per target, plus royalties on the commercial sales of any resulting products. The total milestones are categorized as follows: development milestones—$7.5 million; and regulatory milestones—$14 million. Through March 31, 2015, the Company has received and recognized an aggregate of $20.5 million in milestone payments for compounds covered under this agreement now or in the past, including a $3 million development milestone related to initiation of a Phase IIb clinical trial (as defined in the agreement) for SAR650984 and a $1 million development milestone related to initiation of a Phase I clinical trial for SAR408701which are included in license and milestone fee revenue for the nine months ended March 31, 2015. The next potential milestone the Company will be entitled to receive for each of SAR566658 and SAR408701 will be a development milestone for initiation of a Phase IIb clinical trial (as defined in the agreement), which will result in each case in a $3 million payment being due. The next potential milestone the Company will be entitled to receive with respect to SAR650984 will be a development milestone for initiation of a Phase III clinical trial, which will result in a $3 million payment being due. The next potential milestone the Company will be entitled to receive for the unidentified target will be a development milestone for commencement of a Phase I clinical trial, which will result in a $1 million payment being due. At the time of execution of this agreement, there was significant uncertainty as to whether these milestones would be achieved. In consideration of this, as well as the Company’s past involvement in the research and manufacturing of these product candidates, these milestones were deemed substantive.

	In December 2006, the Company entered into a right-to-test agreement with Sanofi. The agreement provides Sanofi with the right to (a) test the Company’s maytansinoid ADC technology with Sanofi’s antibodies to targets under a right-to-test, or research, license, (b) take exclusive options, with certain restrictions, to specified targets for specified option periods and (c) upon exercise of those options, take exclusive licenses to use the Company’s maytansinoid ADC technology to develop and commercialize products directed to the specified targets on terms agreed upon at the inception of the right-to-test agreement. Sanofi no longer has the right to take additional options under the agreement, although multiple outstanding options remain in effect for the remainder of their respective option periods. For each development and commercialization license taken, the Company is entitled to receive an exercise fee of $2 million and up to a total of $30 million in milestone payments, plus royalties on the commercial sales of any resulting products. The total milestones are categorized as follows: development milestones—$10 million; and regulatory milestones—$20 million. Sanofi is responsible for the manufacturing, product development and marketing of any products resulting from the agreement.

	In December 2013, Sanofi took its first exclusive development and commercialization license under the right-to-test agreement, for which the Company received an exercise fee of $2 million and was recognizing this amount as revenue ratably over the Company’s estimated period of its substantial involvement. The Company had previously estimated this development period would conclude at the end of non-pivotal Phase II testing. During the current period, the Company determined it will not be substantially involved in the development and commercialization of the product based on Sanofi’s current plans to develop and manufacture the product without the assistance of the Company. As a result of this determination, the Company recognized the balance of the upfront exercise fee during the first quarter of fiscal 2015. This change in estimate results in an increase to license and milestone fees of $1.6 million for the nine months ended March 31, 2015 compared to amounts that would have been recognized pursuant to the Company’s previous estimate. The next payment the Company could receive would either be a $2 million development milestone payment with the initiation of a Phase I clinical trial under the first development and commercialization license taken, or a $2 million exercise fee for the execution of a second license. At the time of execution of this agreement, there was significant uncertainty as to whether the milestone related to initiation of a Phase I clinical trial under the first development and commercialization license would be achieved. In consideration of this, as well as the Company’s expected involvement in the research and manufacturing of these product candidates, this milestone was deemed substantive.

	Novartis

	Novartis had the right to take six exclusive development and commercialization licenses under a right-to-test agreement established in October 2010, and took these licenses prior to the expiration of the agreement in October 2014. The Company received a $45 million upfront payment in connection with the execution of the right-to-test agreement in 2010, and for each development and commercialization license taken for a specific target, the Company received an exercise fee of $1 million and is entitled to receive up to a total of $199.5 million in milestone payments, plus royalties on the commercial sales of any resulting products. The total milestones are categorized as follows: development milestones—$22.5 million; regulatory milestones—$77 million; and sales milestones—$100 million. The initial three-year term of the right-to-test agreement was extended by Novartis in October 2013 for an additional one-year period by payment of a $5 million fee to the Company. The Company also is entitled to receive payments for research and development activities performed on behalf of Novartis. Novartis is responsible for the manufacturing, product development and marketing of any products resulting from this agreement.

	In March 2013, the Company and Novartis amended the right-to-test agreement so that Novartis could take a license to develop and commercialize products directed at two undisclosed, related targets, one target licensed on an exclusive basis and the other target initially licensed on a non-exclusive basis. The target licensed on a non-exclusive basis may no longer be converted to an exclusive target due to the expiration of the right-to-test agreement. The Company received a $3.5 million fee in connection with the execution of the amendment to the agreement. The Company may be required to credit this fee against future milestone payments if Novartis discontinues the development of a specified product under certain circumstances.

	In connection with the amendment, in March 2013, Novartis took the license referenced above under the right-to-test agreement, as amended, enabling it to develop and commercialize products directed at the two targets. The Company received a $1 million upfront fee with the execution of this license. Additionally, the execution of this license provides the Company the opportunity to receive milestone payments totaling $199.5 million (development milestones—$22.5 million; regulatory milestones—$77 million; and sales milestones—$100 million) or $238 million (development milestones—$22.5 million; regulatory milestones—$115.5 million; and sales milestones—$100 million), depending on the composition of any resulting products.

	In October 2013 and November 2013, Novartis took its second and third exclusive licenses to single targets, and in October 2014, took three remaining exclusive licenses, each triggering a $1 million payment to the Company and the opportunity to receive milestone payments totaling $199.5 million, as outlined above, plus royalties on the commercial sales of any resulting products. In January 2015, Novartis initiated Phase I, first-in-human clinical testing of its cKit-targeting ADC product candidate, LOP628, triggering a $5 million development milestone payment to the Company. The next payment the Company could receive would be either a $7.5 million development milestone for commencement of a Phase II clinical trial under this license or a $5 million development milestone for commencement of a Phase I clinical trial under any of its other five licenses. At the time of execution of these agreements, there was significant uncertainty as to whether these milestones would be achieved. In consideration of this, as well as the Company’s past involvement in the research and manufacturing of these product candidates, these milestones were deemed substantive. Additionally, the Company is entitled to receive royalties on product sales, if any.

	In accordance with ACS 605-25 (as amended by ASU No. 2009-13), the Company identified all of the deliverables at the inception of the right-to-test agreement and subsequently when amended. The significant deliverables were determined to be the right-to-test, or research, license, the development and commercialization licenses, rights to future technological improvements, and the research services. The options to obtain development and commercialization licenses in the right-to-test agreement were determined not to be substantive and, as a result, the exclusive development and commercialization licenses were considered deliverables at the inception of the right-to-test agreement. Factors that were considered in determining the options were not substantive included (i) the overall objective of the agreement was for Novartis to obtain development and commercialization licenses, (ii) the size of the exercise fee of $1 million for each development and commercialization license obtained is not significant relative to the $45 million upfront payment that was due at the inception of the right-to-test agreement, (iii) the limited economic benefit that Novartis could obtain from the right-to-test agreement unless it exercised its options to obtain development and commercialization licenses, and (iv) the lack of economic penalties as a result of exercising the options.

	The Company has determined that the research license together with the development and commercialization licenses represent one unit of accounting as the research license does not have stand-alone value from the development and commercialization licenses due to the lack of transferability of the research license and the limited economic benefit Novartis would derive if they did not obtain any development and commercialization licenses. The Company has also determined that this unit of accounting does have stand-alone value from the rights to future technological improvements and the research services. The rights to future technological improvements and the research services are considered separate units of accounting as each of these was determined to have stand-alone value. The rights to future technological improvements have stand-alone value as Novartis would be able to use those items for their intended purpose without the undelivered elements. The research services have stand-alone value as similar services are sold separately by other vendors.

	The estimated selling prices for the development and commercialization licenses are the Company’s best estimate of selling price and were determined based on market conditions, similar arrangements entered into by third parties, including the Company’s understanding of pricing terms offered by its competitors for single-target development and commercialization licenses that utilize ADC technology, and entity-specific factors such as the pricing terms of the Company’s previous single-target development and commercialization licenses, recent preclinical and clinical testing results of therapeutic products that use the Company’s ADC technology, and the Company’s pricing practices and pricing objectives. The estimated selling price of the right to technological improvements is the Company’s best estimate of selling price and was determined by estimating the probability that technological improvements will be made and the probability that such technological improvements made will be used by Novartis. In estimating these probabilities, we considered factors such as the technology that is the subject of the development and commercialization licenses, our history of making technological improvements, and when such improvements, if any, were likely to occur relative to the stage of development of any product candidates pursuant to the development and commercialization licenses. The Company’s estimate of probability considered the likely period of time that any improvements would be utilized, which was estimated to be ten years following delivery of a commercialization and development license. The value of any technological improvements made available after this ten year period was considered to be de minimis due to the significant additional costs that would be incurred to incorporate such technology into any existing product candidates. The estimate of probability was multiplied by the estimated selling price of the development and commercialization licenses and the resulting cash flow was discounted at a rate of 16%, representing the Company’s estimate of its cost of capital at the time. The estimated selling price of the research services was based on third-party evidence given the nature of the research services to be performed for Novartis and market rates for similar services.

	Upon payment of the extension fee in October 2013, the total arrangement consideration of $60.2 million (which comprises the $45 million upfront payment, the amendment fee of $3.5 million, the $5 million extension fee, the exercise fee for each license, and the expected fees for the research services to be provided under the remainder of the arrangement) was reallocated to the deliverables based on the relative selling price method as follows: $55 million to the delivered and undelivered development and commercialization licenses; $4.5 million to the rights to future technological improvements; and $710,000 to the research services. The Company recorded $17.2 million of the $55 million of the arrangement consideration outlined above for the two development and commercialization licenses taken by Novartis in October 2013 and November 2013, which is included in license and milestone fee revenue for the nine months ended March 31, 2014, and $25.7 million for the three development and commercialization licenses taken in October 2014, which is included in license and milestone fee revenue for the nine months ended March 31, 2015. The Company also recorded a cumulative catch-up of $1 million for the license delivered in March 2013 and the delivered portion of the license covering future technological improvements, which is included in license and milestone fee revenue for the nine months ended March 31, 2014.

	Since execution of the first development and commercialization license taken in March 2013, the amount of the total arrangement consideration allocated to future technological improvements is being recognized as revenue ratably over the period the Company is obligated to make available any technological improvements, which is equivalent to the estimated term of the agreement. The Company estimates the term of a development and commercialization license to be approximately 25 years, which reflects management’s estimate of the time necessary to develop and commercialize products pursuant to the license plus the estimated royalty term. The Company reassesses the estimated term at the end of each reporting period. The Company will recognize research services revenue as the related services are delivered.

	Lilly

	Eli Lilly and Company (Lilly) had the right to take three exclusive development and commercialization licenses under a right-to-test agreement established in December 2011, and took these licenses prior to the expiration of the agreement in December 2014. The Company received a $20 million upfront payment in connection with the execution of the right-to-test agreement in 2011. Under the terms of this right-to-test agreement, the first license had no associated exercise fee, and the second and third licenses each had a $2 million exercise fee. The first development and commercialization license was taken in August 2013 and the agreement was amended in December 2013 to provide Lilly with an extension provision and retrospectively include a $2 million exercise fee for the first license in lieu of the fee due for either the second or third license. The second and third licenses were taken in December 2014, with one including the $2 million exercise fee and the other not. Under the two licenses with the $2 million exercise fee, the Company is entitled to receive up to a total of $199 million in milestone payments, plus royalties on the commercial sales of any resulting products. Under the license taken in December 2014 without the exercise fee, the Company is entitled to receive up to a total of $200.5 million in milestone payments, plus royalties on the commercial sales of any resulting products. The total milestones are categorized as follows: development milestones—$29 million for the two development and commercialization licenses with the $2 million exercise fee, and $30.5 million for the one development and commercialization license with no exercise fee; regulatory milestones—$70 million in all cases; and sales milestones—$100 million in all cases. The next payment the Company could receive would be a $5 million development milestone payment with the initiation of a Phase I clinical trial under any of these three development and commercialization licenses taken. At the time of execution of this agreement, there was significant uncertainty as to whether these milestones related to initiation of a Phase I clinical trial under the development and commercialization licenses would be achieved. In consideration of this, as well as the Company’s expected involvement in the research and manufacturing of these product candidates, these milestones were deemed substantive. The Company also is entitled to receive payments for delivery of cytotoxic agents to Lilly and research and development activities performed on behalf of Lilly. Lilly is responsible for the manufacturing, product development and marketing of any products resulting from this collaboration.

	In accordance with ASC 605-25 (as amended by ASU No. 2009-13), the Company identified all of the deliverables at the inception of the right-to-test agreement. The significant deliverables were determined to be the right-to-test, or research, license, the exclusive development and commercialization licenses, rights to future technological improvements, delivery of cytotoxic agents and the research services. The options to obtain development and commercialization licenses in the right-to-test agreement were determined not to be substantive and, as a result, the exclusive development and commercialization licenses were considered deliverables at the inception of the right-to-test agreement. Factors that were considered in determining the options were not substantive included (i) the overall objective of the agreement was for Lilly to obtain development and commercialization licenses, (ii) the size of the exercise fees of $2 million for each development and commercialization license taken beyond the first license is not significant relative to the $20 million upfront payment that was due at the inception of the right-to-test agreement, (iii) the limited economic benefit that Lilly could obtain from the right-to-test agreement unless it exercised its options to obtain development and commercialization licenses, and (iv) the lack of economic penalties as a result of exercising the options.

	The Company has determined that the research license together with the development and commercialization licenses represent one unit of accounting as the research license does not have stand-alone value from the development and commercialization licenses due to the lack of transferability of the research license and the limited economic benefit Lilly would derive if they did not obtain any development and commercialization licenses. The Company has also determined that this unit of accounting has stand-alone value from the rights to future technological improvements, the delivery of cytotoxic agents and the research services. The rights to future technological improvements, delivery of cytotoxic agents and the research services are considered separate units of accounting as each of these was determined to have stand-alone value. The rights to future technological improvements have stand-alone value as Lilly would be able to use those items for their intended purpose without the undelivered elements. The research services and cytotoxic agents have stand-alone value as similar services and products are sold separately by other vendors.

	The estimated selling prices for the development and commercialization licenses are the Company’s best estimate of selling price and were determined based on market conditions, similar arrangements entered into by third parties, including pricing terms offered by our competitors for single-target development and commercialization licenses that utilize antibody-drug conjugate technology, and entity-specific factors such as the pricing terms of the Company’s previous single-target development and commercialization licenses, recent preclinical and clinical testing results of therapeutic products that use the Company’s ADC technology, and the Company’s pricing practices and pricing objectives. The estimated selling price of the rights to technological improvements is the Company’s best estimate of selling price and was determined by estimating the probability that technological improvements will be made, and the probability that technological improvements made will be used by Lilly. In estimating these probabilities, we considered factors such as the technology that is the subject of the development and commercialization licenses, our history of making technological improvements, and when such improvements, if any, were likely to occur relative to the stage of development of any product candidates pursuant to the development and commercialization licenses. The company’s estimate of probability considered the likely period of time that any improvements would be utilized, which was estimated to be ten years following delivery of a commercialization and development license. The value of any technological improvements made available after this ten year period was considered to be de minimis due to the significant additional costs that would be incurred to incorporate such technology into any existing product candidates. The estimate of probability was multiplied by the estimated selling price of the development and commercialization licenses and the resulting cash flow was discounted at a rate of 16%, representing the Company’s estimate of its cost of capital at the time. The estimated selling price of the cytotoxic agent was based on third-party evidence given market rates for the manufacture of such cytotoxic agents. The estimated selling price of the research services was based on third-party evidence given the nature of the research services to be performed for Lilly and market rates for similar services.

	The total arrangement consideration of $28.2 million (which comprises the $20 million upfront payment, the exercise fee, if any, for each license, the expected fees for the research services to be provided and the cytotoxic agent to be delivered under the arrangement) was allocated to the deliverables based on the relative selling price method as follows: $23.5 million to the development and commercialization licenses; $0.6 million to the rights to future technological improvements, $0.8 million to the sale of cytotoxic agent; and $3.3 million to the research services. Upon execution of the development and commercialization license taken by Lilly in August 2013, the Company recorded $7.8 million of the $23.5 million of the arrangement consideration outlined above, which is included in license and milestone fee revenue for the nine-month period ended March 31, 2014. With this first development and commercialization license taken, the amount of the total arrangement consideration allocated to future technological improvements will commence to be recognized as revenue ratably over the period the Company is obligated to make available any technological improvements, which is the equivalent to the estimated term of the license. The Company estimates the term of a development and commercialization license to be approximately 25 years, which reflects management’s estimate of the time necessary to develop and commercialize therapeutic products pursuant to the license plus the estimated royalty term. The Company will reassess the estimated term at each subsequent reporting period. Upon execution of two development and commercialization licenses taken by Lilly in December 2014, the Company recognized as license revenue the remaining $15.6 million of arrangement consideration allocated to the development and commercialization licenses, which is included in license and milestone fee revenue for the nine-month period ended March 31, 2015. The Company will recognize research services revenue and revenue from the delivery of cytotoxic agents as the related services and cytotoxic agents are delivered.

CytomX

In January 2014, the Company entered into a reciprocal right-to-test agreement with CytomX Therapeutics, Inc. (CytomX). The agreement provides CytomX with the right to test the Company’s ADC technology with CytomX Probodies™ to create Probody-drug conjugates (PDCs) directed to a specified number of targets under a right-to-test, or research, license, and to subsequently take an exclusive, worldwide license to use the Company’s ADC technology to develop and commercialize PDCs directed to the specified targets on terms agreed upon at the inception of the right-to- test agreement. The Company received no upfront cash payment in connection with the execution of the right-to-test agreement. Instead, the Company received reciprocal rights to CytomX’s Probody technology whereby the Company was provided the right to test CytomX’s Probody technology to create PDCs directed to a specified number of targets and to subsequently take exclusive, worldwide licenses to develop and commercialize PDCs directed to the specified targets on terms agreed upon at the inception of the right-to-test agreement. The terms of the right-to-test agreement require the Company and CytomX to each take its respective development and commercialization licenses by the end of the term of the research licenses. In addition, both the Company and CytomX are required to perform specific research activities under the right-to-test agreement on behalf of the other party for no monetary consideration.

With respect to the development and commercialization license that may be taken by CytomX, the Company is entitled to receive up to a total of $160 million in milestone payments plus royalties on the commercial sales of any resulting product. The total milestones are categorized as follows: development milestones—$10 million; regulatory milestones—$50 million; and sales milestones—$100 million. Assuming no annual maintenance fee is payable as described below, the next payment the Company could receive would be a $1 million development milestone payment with commencement of a Phase I clinical trial. At the time of execution of the right-to-test agreement, there was significant uncertainty as to whether the milestone related to the Phase I clinical trial would be achieved. In consideration of this, as well as the Company’s expected involvement in the research and manufacturing of any product candidate, this milestone was deemed substantive. CytomX is responsible for the manufacturing, product development and marketing of any PDC resulting from the development and commercialization license taken by CytomX under this collaboration.

With respect to any development and commercialization license that may be taken by the Company, the Company will potentially be required to pay up to a total of $80 million in milestone payments per license, plus royalties on the commercial sales of any resulting product. The total milestones per license are categorized as follows: development milestones—$7 million; regulatory milestones—$23 million; and sales milestones—$50 million. Assuming no annual maintenance fee is payable as described below, the next payment the Company could be required to make is a $1 million development milestone payment with commencement of a Phase I clinical trial. The Company is responsible for the manufacturing, product development and marketing of any PDC resulting from any development and commercialization license taken by the Company under this collaboration.

In addition, each party may be liable to pay annual maintenance fees to the other party if the licensed PDC product candidate covered under each development and commercialization license has not progressed to a specified stage of development within a specified time frame.

The arrangement was accounted for based on the fair value of the items exchanged. The items to be delivered to CytomX under the arrangement are accounted for under the Company’s revenue recognition policy. The items to be received from CytomX are recorded as research and development expenses as incurred.

In accordance with ASC 605-25 (as amended by ASU No. 2009-13), the Company identified all of the deliverables at the inception of the right- to-test agreement. The significant deliverables were determined to be the right-to-test, or research, license, the exclusive development and commercialization license, rights to future technological improvements, and the research services. The research license in the right-to-test agreement was determined not to be substantive and, as a result, the exclusive development and commercialization license was considered a deliverable at the inception of the right-to-test agreement. Factors that were considered in determining the research license was not substantive included (i) the overall objective of the agreement is for CytomX to obtain a development and commercialization license, (ii) there are no exercise fees payable upon taking the development and commercialization license, (iii) the limited economic benefit that CytomX could obtain from the right-to-test agreement unless CytomX was able to take the development and commercialization license, and (iv) the lack of economic penalties as a result of taking the license.

The Company has determined that the research license from the Company to CytomX together with the development and commercialization license from the Company to CytomX represent one unit of accounting as the research license does not have stand-alone value from the development and commercialization license due to the lack of transferability of the research license and the limited economic benefit CytomX would derive if they did not obtain any development and commercialization license. The Company has also determined that this unit of accounting has stand-alone value from the rights to future technological improvements and the research services. The rights to future technological improvements and the research services are considered separate units of accounting as each of these was determined to have stand-alone value. The rights to future technological improvements have stand-alone value as CytomX would be able to use those items for their intended purpose without the undelivered elements. The research services have stand-alone value as similar services are sold separately by other vendors.

The estimated selling price for the development and commercialization license is the Company’s best estimate of selling price and was determined based on market conditions, similar arrangements entered into by third parties, including pricing terms offered by the Company’s competitors for single-target development and commercialization licenses that utilize antibody-drug conjugate technology, and entity-specific factors such as the pricing terms of the Company’s previous single-target development and commercialization licenses, recent preclinical and clinical testing results of therapeutic products that use the Company’s ADC technology, and the Company’s pricing practices and pricing objectives. In order to determine the best estimate of selling price, the Company determined the overall value of a license by calculating a risk- adjusted net present value of a recent, comparable transaction the Company entered into with another collaborator. This overall value was then decreased by risk-adjusting the net present value of the contingent consideration (the milestones and royalties) payable by CytomX under the development and commercialization license. This amount represents the value that a third party would be willing to pay as an upfront payment for this license to the Company’s technology.

The estimated selling price of the rights to technological improvements is the Company’s best estimate of selling price and was determined by estimating the probability that technological improvements will be made, and the probability that technological improvements made will be used by CytomX. In estimating these probabilities, the Company considered factors such as the technology that is the subject of the development and commercialization license, the Company’s history of making technological improvements, and when such improvements, if any, were likely to occur relative to the stage of development of the product candidate pursuant to the development and commercialization license. The Company’s estimate of probability considered the likely period of time that any improvements would be utilized, which was estimated to be ten years following delivery of the commercialization and development license. The value of any technological improvements made available after this ten year period was considered to be de minimis due to the significant additional costs that would be incurred to incorporate such technology into any existing product candidate. The estimate of probability was multiplied by the estimated selling price of the development and commercialization license and the resulting cash flow was discounted at a rate of 13%, representing the Company’s estimate of its cost of capital at the time.

The estimated selling price of the research services was based on third-party evidence given the nature of the research services to be performed for CytomX and market rates for similar services.

The total allocable consideration of $13.1 million (which comprises the $13.0 million that a third party would be willing to pay as an upfront payment for this license to the Company’s technology plus $140,000 for the fair value of fees for the research services to be provided) was allocated to the deliverables based on the relative selling price method as follows: $12.7 million to the development and commercialization license; $350,000 to the rights to future technological improvements and $140,000 to the research services. The Company will recognize as license revenue the amount of the total allocable consideration allocated to the development and commercialization license when the development and commercialization license is delivered to CytomX. At the time the license is taken, the amount of the total allocable consideration allocated to future technological improvements will commence to be recognized as revenue ratably over the period the Company is obligated to make available any technological improvements, which is the equivalent to the estimated term of the license. The Company estimates the term of a development and commercialization license to be approximately 25 years, which reflects management’s estimate of the time necessary to develop and commercialize therapeutic products pursuant to the license plus the estimated royalty term. The Company will be required to reassess the estimated term at each subsequent reporting period. The Company does not control when CytomX will take the development and commercialization license. As a result, the Company cannot predict when it will recognize the related license revenue except that it will be within the term of the research license. The Company will recognize research services revenue as the related services are delivered.

No license fee revenue has been recognized related to this agreement through March 31, 2015 as the research license was not considered to be substantive and the development and commercialization license had not been delivered at this time. Accordingly, $13.0 million of allocated arrangement consideration is included in long-term deferred revenue at March 31, 2015.

The $13.1 million of total allocable consideration to be accounted for as revenue described above is also the amount that was used to account for the expense of the licenses and research services the Company received or will receive from CytomX. Based on an estimate of the research services that CytomX will be providing to the Company for no monetary consideration, $310,000 was allocated to such services and will be expensed over the period the services are provided. The balance of $12.8 million pertains to technology rights received which was recorded as research and development expense for the three and nine months ended March 31, 2014 upon execution of the research agreement.

Takeda

In March 2015, the Company entered into a right-to-test agreement with Takeda Pharmaceutical Company Limited (Takeda) through its wholly owned subsidiary, Millennium Pharmaceuticals, Inc. The agreement provides Takeda with the right to (a) take exclusive options, with certain restrictions, to individual targets selected by Takeda for specified option periods, (b) test the Company’s antibody-drug conjugate (ADC) technology with Takeda’s antibodies directed to the targets optioned under a right-to-test, or research, license, and (c) take exclusive licenses to use the Company’s ADC technology to develop and commercialize products to targets optioned for up to two individual targets on terms specified in the right-to-test agreement. Takeda must exercise its options for the development and commercialization licenses by the end of the three-year term of the right-to-test agreement, after which any then outstanding options will lapse. Takeda has the right to extend the three-year right-to-test period for one additional year by payment to the Company of $4 million. Alternatively, Takeda has the right to expand the scope of the right-to-test agreement by payment to the Company of $8 million. If Takeda opts to expand the scope of the right-to-test agreement, it will be entitled to take additional exclusive options, one of which may be exercised for an additional development and commercialization license, and the right-to test period will be extended until the fifth anniversary of the effective date of the right-to-test agreement. Takeda is responsible for the manufacturing, product development and marketing of any products resulting from this collaboration.

The Company received a $20 million upfront payment in connection with the execution of the right-to-test agreement and, for each development and commercialization license taken, is entitled to receive up to a total of $210 million in milestone payments, plus royalties on the commercial sales of any resulting products. The total milestones are categorized as follows: development milestones—$30 million; regulatory milestones—$85 million; and sales milestones—$95 million. The first potential milestone the Company will be entitled to receive will be a $5 million development milestone payment with the initiation of a Phase I clinical trial under the first development and commercialization license taken. At the time of execution of this agreement, there was significant uncertainty as to whether the milestone related to initiation of a Phase I clinical trial under the first development and commercialization license would be achieved. In consideration of this, as well as the Company’s expected involvement in the research and manufacturing of these product candidates, this milestone was deemed substantive. The Company also is entitled to receive payments for delivery of cytotoxic agents to Takeda and research and development activities performed on behalf of Takeda.

In accordance with ASC 605-25 (as amended by ASU No. 2009-13), the Company identified all of the deliverables at the inception of the right- to-test agreement. The significant deliverables were determined to be the right-to-test, or research, license, the two exclusive development and commercialization licenses, rights to future technological improvements, the development and commercialization license contained in the option to expand the agreement and the research services. The options to obtain two development and commercialization licenses in the right-to-test agreement were determined not to be substantive and, as a result, the exclusive development and commercialization licenses were considered deliverables at the inception of the right-to-test agreement. Factors that were considered in determining the options were not substantive included (i) the overall objective of the agreement was for Takeda to obtain development and commercialization licenses, (ii) no additional consideration required for each development and commercialization license taken beyond the $20 million upfront payment that was due at the inception of the right-to-test agreement, (iii) the limited economic benefit that Takeda could obtain from the right-to-test agreement unless it exercised its options to obtain development and commercialization licenses, and (iv) the lack of economic penalties as a result of exercising the options.

The option to expand the scope of the right-to-test agreement and obtain, among other deliverables, a third development and commercialization license was not determined to be substantive and, as a result, the third development and commercialization license was considered a deliverable at the inception of the right-to-test agreement. Factors that were considered in determining this option was not substantive included (i) the overall objective of the agreement was for Takeda to obtain development and commercialization licenses and (ii) the relative size of the $8 million option payment in exchange for this third development and commercialization license and two year extension of the right-to-test period when compared to the $20 million upfront payment in exchange for, among other deliverables, two development and commercialization licenses and the separate ability to extend the right-to-test period for one year in exchange for a $4 million payment.

The Company has determined that the research license together with the development and commercialization licenses represent one unit of accounting as the research license does not have stand-alone value from the development and commercialization licenses due to the lack of transferability of the research license and the limited economic benefit Takeda would derive if they did not obtain any development and commercialization licenses. The Company has also determined that this unit of accounting has stand-alone value from the rights to future technological improvements, the license contained in the option to expand the agreement and the research services. The license contained in the option to expand the agreement has stand-alone value as it would result in an additional license with which Takeda would derive economic benefit. The rights to future technological improvements have stand-alone value as Takeda would be able to use those items for their intended purpose without the undelivered elements. The research services have stand-alone value as similar services are sold separately by other vendors.

The estimated selling prices for the development and commercialization licenses are the Company’s best estimate of selling price and were determined based on market conditions, similar arrangements entered into by third parties, including pricing terms offered by our competitors for single-target development and commercialization licenses that utilize antibody-drug conjugate technology, and entity-specific factors such as the pricing terms of the Company’s previous single-target development and commercialization licenses, recent preclinical and clinical testing results of therapeutic products that use the Company’s ADC technology, and the Company’s pricing practices and pricing objectives. The estimated selling price of the rights to technological improvements is the Company’s best estimate of selling price and was determined by estimating the probability that technological improvements will be made, and the probability that technological improvements made will be used by Takeda. In estimating these probabilities, we considered factors such as the technology that is the subject of the development and commercialization licenses, our history of making technological improvements, and when such improvements, if any, were likely to occur relative to the stage of development of any product candidates pursuant to the development and commercialization licenses. The Company’s estimate of probability considered the likely period of time that any improvements would be utilized, which was estimated to be ten years following delivery of a commercialization and development license. The value of any technological improvements made available after this ten year period was considered to be de minimis due to the significant additional costs that would be incurred to incorporate such technology into any existing product candidates. The estimate of probability was multiplied by the estimated selling price of the development and commercialization licenses and the resulting cash flow was discounted at a rate of 13%, representing the Company’s estimate of its cost of capital at the time. The estimated selling price of the research services was based on third-party evidence given the nature of the research services to be performed for Takeda and market rates for similar services.

The total arrangement consideration of $31.4 million (which comprises the $20 million upfront payment, the $8 million payment to expand the agreement and the expected fees for the research services to be provided) was allocated to the deliverables based on the relative selling price method. The Company will recognize as license revenue an equal amount of the total arrangement consideration allocated to the development and commercialization licenses as each individual license is delivered to Takeda upon Takeda’s exercise of its options to such licenses. At the time the first development and commercialization license is taken, the amount of the total arrangement consideration allocated to future technological improvements will commence to be recognized as revenue ratably over the period the Company is obligated to make available any technological improvements, which is the equivalent to the estimated term of the license. The Company estimates the term of a development and commercialization license to be approximately 25 years, which reflects management’s estimate of the time necessary to develop and commercialize therapeutic products pursuant to the license plus the estimated royalty term. The Company will reassess the estimated term at each subsequent reporting period. The Company does not control when Takeda will exercise its options for development and commercialization licenses. As a result, the Company cannot predict when it will recognize the related license revenue except that it will be within the term of the research license. The Company will recognize research services revenue as the related services are delivered.

For additional information related to these agreements, as well as the Company’s other significant collaborative agreements, please read Note C, Agreements to our consolidated financial statements included within the Company’s 2014 Form 10-K.

Capital_Stock

Capital Stock	9 Months Ended
Capital Stock	Mar. 31, 2015
Capital Stock
Capital Stock
	C.Capital Stock

	2001 Non-Employee Director Stock Plan

	During the three and nine months ended March 31, 2015, the Company recorded approximately $18,000 and $(19,000) in expense and expense reduction, respectively, related to stock units outstanding under the Company’s 2001 Non-Employee Director Stock Plan, or the 2001 Plan, compared to $2,000 and $(11,000) in expense and expense reduction recorded during the three and nine months ended March 31, 2014. The value of the stock units are classified as a liability and adjusted to market value at each reporting period as the redemption amount of stock units for this plan will be paid in cash. No stock units have been issued under the 2001 Plan subsequent to June 30, 2004.

	Compensation Policy for Non-Employee Directors

	On November 12, 2013, the Board amended the Compensation Policy for Non-Employee Directors to make certain changes to the compensation of its non-employee directors, including an increase in the fees paid in cash to the non-employee directors. Under the terms of the amended policy, the redemption amount of deferred share units issued will continue to be paid in shares of common stock of the Company on the date a director ceases to be a member of the Board. Annual retainers vest quarterly over approximately one year from the date of grant, contingent upon the individual remaining a director of ImmunoGen as of each vesting date. The number of deferred share units awarded is now fixed per the plan on the date of the award and is no longer based on the market price of the Company’s common stock on the date of the award. All unvested deferred stock awards will automatically vest immediately prior to the occurrence of a change of control.

	In addition to the deferred share units, the Non-Employee Directors are now also entitled to receive a fixed number of stock options instead of a fixed grant date fair value of options, determined using the Black-Scholes option pricing model measured on the date of grant, which would be the date of the annual meeting of shareholders. These options vest quarterly over approximately one year from the date of grant. Any new directors will receive a pro-rated award, depending on their date of election to the Board. The directors received a total of 80,000, 80,000 and 41,805 stock options for the nine-month period ended March 31, 2015, and fiscal years 2014 and 2013, respectively, and the related compensation expense for the three and nine months ended March 31, 2015 and 2014 is included in the amounts discussed in the “Stock-Based Compensation” section of footnote A above.

	During the three and nine months ended March 31, 2015, the Company recorded approximately $93,000 and $329,000 in compensation expense, respectively, related to deferred share units issued and outstanding under the Company’s Compensation Policy for Non-Employee Directors, compared to $118,000 and $315,000 in compensation expense recorded during the three and nine months ended March 31, 2014.

Cash_and_Cash_Equivalents

Cash and Cash Equivalents	9 Months Ended
Cash and Cash Equivalents	Mar. 31, 2015
Cash and Cash Equivalents
Cash and Cash Equivalents
	D.Cash and Cash Equivalents

	As of March 31, 2015 and June 30, 2014, the Company held $111.8 million and $142.3 million, respectively, in cash and money market funds consisting principally of U.S. Government-issued securities and high quality, short-term commercial paper which were classified as cash and cash equivalents.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2015
Commitments and Contingencies
Commitments and Contingencies
	E.Commitments and Contingencies

	Leases

	Effective July 27, 2007, the Company entered into a lease agreement with Intercontinental Fund III for the rental of approximately 89,000 square feet of laboratory and office space at 830 Winter Street, Waltham, MA through March 2020. The Company uses this space for its corporate headquarters and other operations. In December 2013, the Company modified its lease agreement at 830 Winter Street, Waltham, MA to include approximately 19,000 square feet of additional office space through 2020, concurrent with the remainder of the original lease term. As part of the lease amendment, the Company received a construction allowance of approximately $746,000 to build out office space to the Company’s specifications. The Company obtained physical control of the additional space to begin construction in January 2014. In April, 2014, the Company again modified its lease agreement at this site to extend the lease to 2026. The Company may extend the lease for two additional terms of five years. As part of this lease amendment, the Company received a construction allowance of approximately $1.1 million to build out office space to the Company’s specifications. The Company is required to pay certain operating expenses for the leased premises subject to escalation charges for certain expense increases over a base amount. The Company entered into a sublease in December 2009 for 14,100 square feet of this space in Waltham through January 2015; however, the Company and the sublessee agreed to end the lease term effective December 31, 2014.

	Effective April 2012, the Company entered into a sublease agreement for the rental of 7,310 square feet of laboratory and office space at 830 Winter Street, Waltham, MA from Histogenics Corporation, the term of which expires in May 2015. The Company is required to pay certain operating expenses for the leased premises subject to escalation charges for certain expense increases over a base amount.

	The Company also leases manufacturing and office space at 333 Providence Highway, Norwood, MA under an agreement through 2018 with an option to extend the lease for an additional term of five years. The Company is required to pay certain operating expenses for the leased premises subject to escalation charges for certain expense increases over a base amount.

	Effective April 2013, the Company entered into a lease agreement with River Ridge Limited Partnership for the rental of 7,507 square feet of additional office space at 100 River Ridge Drive, Norwood, MA. The initial term of the lease is for five years and two months commencing in July 2013 with an option for the Company to extend the lease for an additional term of five years. The Company is required to pay certain operating expenses for the leased premises subject to escalation charges for certain expense increases over a base amount. The Company entered into a sublease in December 2014 for this space, effective January 2015 through July 2018.

	The minimum rental commitments for the Company’s facilities, including real estate taxes and other expenses, for the next five fiscal years and thereafter under the non-cancelable operating lease agreements discussed above are as follows (in thousands):

	2015 (three months remaining)	$	1,781
	2016	6,926
	2017	6,942
	2018	7,048
	2019	6,237
	Thereafter	43,900
	Total minimum lease payments	$	72,834
	Total minimum rental payments from sublease	(395		)
	Total minimum lease payments, net	$	72,439

	There are no obligations under capital leases as of March 31, 2015, as all of the capital leases were single payment obligations which have all been made.

	Collaborations

	The Company is contractually obligated to make potential future success-based development, regulatory or sales milestone payments in conjunction with certain collaborative agreements. These payments are contingent upon the occurrence of certain future events and, given the nature of these events, it is unclear when, if ever, the Company may be required to pay such amounts. Further, the timing of any future payment is not reasonably estimable. As of March 31, 2015, the maximum amount that may be payable in the future under the Company’s current collaborative agreements is $162 million, $1.4 million of which is reimbursable by a third party under a separate agreement.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2015

Summary of Significant Accounting Policies

Basis of Presentation

Subsequent Events

Revenue Recognition

At March 31, 2015, the Company had the following two types of agreements with the parties identified below:

Amgen (four exclusive single-target licenses(1))

Bayer HealthCare (one exclusive single-target license)

Biotest (one exclusive single-target license)

Lilly (three exclusive single-target licenses)

Novartis (five exclusive single-target licenses and one license to two related targets: one target on an exclusive basis and the second target on a non-exclusive basis)

Roche, through its Genentech unit (five exclusive single-target licenses)

Sanofi (one exclusive single-target license and one exclusive license to multiple individual targets)

-1

Amgen has sublicensed one of its exclusive single-target licenses to Oxford BioTherapeutics Ltd.

Sanofi

CytomX

Takeda, through its wholly owned subsidiary, Millennium Pharmaceuticals, Inc.

There are no performance, cancellation, termination or refund provisions in any of the arrangements that contain material financial consequences to the Company.

Development and Commercialization Licenses

Right-to-Test Agreements

Fair Value of Financial Instruments

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Fair Value Measurements at March 31, 2015 Using

Quoted Prices in

Significant Other

Significant

Active Markets for

Observable Inputs

Unobservable

Identical Assets

Inputs

Total

(Level 1)

(Level 2)

(Level 3)

Cash and cash equivalents

111,827

—

Fair Value Measurements at June 30, 2014 Using

Quoted Prices in

Significant Other

Significant

Active Markets for

Observable Inputs

Unobservable

Identical Assets

Inputs

Total

(Level 1)

(Level 2)

(Level 3)

Cash, cash equivalents and restricted cash

142,261

—

The fair value of the Company’s cash equivalents is based primarily on quoted prices from active markets.

Unbilled Revenue

Inventory

Inventory at March 31, 2015 and June 30, 2014 is summarized below (in thousands):

March 31,

June 30,

2015

2014

Raw materials

353

437

Work in process

2,349

2,513

Total

2,702

2,950

Computation of Net Loss per Common Share

March 31,

2015

2014

Options outstanding to purchase common stock and unvested restricted stock

10,158

8,605

Stock-Based Compensation

Three Months Ended

Nine Months Ended

March 31,

2015

2014

2015

2014

Dividend

None

Volatility

60.76

60.44

60.46

60.44

Risk-free interest rate

1.67

1.94

1.86

1.74

Expected life (years)

6.3

Financial Instruments and Concentration of Credit Risk

Segment Information

During the nine months ended March 31, 2015, the Company continued to operate in one operating segment which is the business of discovery of monoclonal antibody-based anticancer therapeutics.

The percentages of revenues recognized from significant customers of the Company in the three and nine months ended March 31, 2015 and 2014 are included in the following table:

Three Months Ended

Nine Months Ended

March 31,

Collaborative Partner:

2015

2014

2015

2014

Biotest

Lilly

Novartis

Roche

There were no other customers of the Company with significant revenues in the three and nine months ended March 31, 2015 and 2014.

Recent Accounting Pronouncements

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
Summary of Significant Accounting Policies (Tables)	Mar. 31, 2015
Summary of Significant Accounting Policies
Schedule of assets that are required to be measured at fair value on a recurring basis
	As of March 31, 2015, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of March 31, 2015 (in thousands):

		Fair Value Measurements at March 31, 2015 Using
					Quoted Prices in			Significant Other		Significant
					Active Markets for			Observable Inputs		Unobservable
					Identical Assets					Inputs
		Total			(Level 1)			(Level 2)		(Level 3)
	Cash and cash equivalents	$	111,827		$	111,827		$	—	$	—

	As of June 30, 2014, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2014 (in thousands):

		Fair Value Measurements at June 30, 2014 Using
					Quoted Prices in			Significant Other		Significant
					Active Markets for			Observable Inputs		Unobservable
					Identical Assets					Inputs
		Total			(Level 1)			(Level 2)		(Level 3)
	Cash, cash equivalents and restricted cash	$	142,261		$	142,261		$	—	$	—


Schedule of inventory
	Inventory at March 31, 2015 and June 30, 2014 is summarized below (in thousands):

		March 31,			June 30,
		2015			2014

	Raw materials	$	353		$	437
	Work in process	2,349			2,513

	Total	$	2,702		$	2,950



Schedule of common stock equivalents, as calculated in accordance with the treasury-stock method

		March 31,
		2015		2014
	Options outstanding to purchase common stock and unvested restricted stock	10,158		8,605


Schedule of weighted-average assumptions used to estimate the fair value of each stock option

		Three Months Ended				Nine Months Ended
		March 31,				March 31,
		2015		2014		2015		2014
	Dividend	None		None		None		None
	Volatility	60.76	%	60.44	%	60.46	%	60.44	%
	Risk-free interest rate	1.67	%	1.94	%	1.86	%	1.74	%
	Expected life (years)	6.3		6.3		6.3		6.3


Schedule of percentage of revenues recognized from significant customers
		Three Months Ended				Nine Months Ended
		March 31,				March 31,
	Collaborative Partner:	2015		2014		2015		2014
	Biotest	9	%	13	%	4	%	3	%
	Lilly	1	%	15	%	24	%	18	%
	Novartis	44	%	22	%	44	%	40	%
	Roche	45	%	37	%	19	%	31	%

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	9 Months Ended
	Mar. 31, 2015
Commitments and Contingencies
Minimum rental commitments for the next five fiscal years and thereafter under the non-cancelable operating lease agreements
	The minimum rental commitments for the Company’s facilities, including real estate taxes and other expenses, for the next five fiscal years and thereafter under the non-cancelable operating lease agreements discussed above are as follows (in thousands):

	2015 (three months remaining)	$	1,781
	2016	6,926
	2017	6,942
	2018	7,048
	2019	6,237
	Thereafter	43,900
	Total minimum lease payments	$	72,834
	Total minimum rental payments from sublease	(395		)
	Total minimum lease payments, net	$	72,439

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

40 Months Ended

1 Months Ended

2 Months Ended

13 Months Ended

1 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Mar. 31, 2015

Mar. 31, 2014

Dec. 31, 2012

Nov. 30, 2009

Sep. 30, 2009

Dec. 31, 2012

31-May-13

Aug. 31, 2013

Dec. 31, 2011

Oct. 31, 2014

Nov. 30, 2013

Oct. 31, 2014

Oct. 31, 2010

Dec. 31, 2013

Apr. 30, 2015

item

Summary of Significant Accounting Policies

Royalties on net sales of Kadcyla

$5,099,000

$2,558,000

$13,890,000

$6,946,000

Number of types of licensing and development agreements with collaborative partners

License and milestone fees

5,078,000

305,000

52,729,000

39,150,000

Development and Commercialization License

Summary of Significant Accounting Policies

Average involvement period over which the upfront payments on single-target licenses are amortized

6 years 6 months

Difference between the full cost to manufacture and amounts received from collaborators for preclinical and clinical materials

8,700,000

1,600,000

Number of types of milestone payments under collaborative arrangements

Number of quarters in arrear for revenue recognition

Development and Commercialization License | Minimum

Summary of Significant Accounting Policies

Period to earn royalty payments

10 years

Development and Commercialization License | Maximum

Summary of Significant Accounting Policies

Period to earn royalty payments

12 years

Development and Commercialization License | Kadcyla

Summary of Significant Accounting Policies

Extended period to earn royalty payments

2 years

Development and Commercialization License | Kadcyla | Minimum

Summary of Significant Accounting Policies

Period to earn royalty payments

10 years

Development and Commercialization License | Kadcyla | Maximum

Summary of Significant Accounting Policies

Period to earn royalty payments

12 years

Right-to-test agreement | Minimum

Summary of Significant Accounting Policies

Average period over which upfront payments are deferred and recognized

12 months

Right-to-test agreement | Maximum

Summary of Significant Accounting Policies

Average period over which upfront payments are deferred and recognized

18 months

Amgen | Development and Commercialization License | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

License exercise fee

1,000,000

License and milestone fees

2,200,000

Amgen | Development and Commercialization License | Non-exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

License exercise fee

500,000

Bayer HealthCare | Development and Commercialization License | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

Biotest | Development and Commercialization License | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

Lilly | Development and Commercialization License

Summary of Significant Accounting Policies

License and milestone fees

15,600,000

7,800,000

Lilly | Development and Commercialization License | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

Lilly | Right-to-test agreement

Summary of Significant Accounting Policies

Number of single-target licenses

Novartis | Development and Commercialization License

Summary of Significant Accounting Policies

Number of single-target licenses

License and milestone fees

25,700,000

17,200,000

Novartis | Development and Commercialization License | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

Number of licenses to two related targets

Number of related targets

Novartis | Right-to-test agreement | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

Roche | Development and Commercialization License | Kadcyla

Summary of Significant Accounting Policies

Royalties on net sales of Kadcyla

5,100,000

2,600,000

13,900,000

6,900,000

Roche | Development and Commercialization License | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

Sanofi | Development and Commercialization License

Summary of Significant Accounting Policies

License exercise fee

2,000,000

License and milestone fees

1,600,000

Sanofi | Development and Commercialization License | Exclusive license

Summary of Significant Accounting Policies

Number of single-target licenses

Number of licenses to multiple individual targets

Subsequent event | Kadcyla

Summary of Significant Accounting Policies

Percentage of royalty payments if applicable threshold is met

85.00%

Subsequent event | Immunity Royalty Holdings, L.P

Summary of Significant Accounting Policies

Cash proceeds from transaction

200,000,000

Transaction costs incurred during royalty purchase agreement

5,700,000

Subsequent event | Immunity Royalty Holdings, L.P | Kadcyla

Summary of Significant Accounting Policies

Percentage of royalty payments

100.00%

Royalties on net sales of Kadcyla

235,000,000

Royalties on net sales of Kadcyla when royalties to the purchaser reach a specified milestone

260,000,000

Percentage of royalty payments if applicable threshold is met

15.00%

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details 2) (Recurring basis, USD $)	Mar. 31, 2015	Jun. 30, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014
Total
Fair value hierarchy for the Company's financial assets measured at fair value
Cash, cash equivalents and restricted cash	$111,827	$142,261
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair value hierarchy for the Company's financial assets measured at fair value
Cash, cash equivalents and restricted cash	$111,827	$142,261

Summary_of_Significant_Account5

Summary of Significant Accounting Policies (Details 3) (USD $)	3 Months Ended		9 Months Ended
Share data in Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Jun. 30, 2014
Inventory
Raw materials	$353,000		$353,000		$437,000
Work in process	2,349,000		2,349,000		2,513,000
Total	2,702,000		2,702,000		2,950,000
Minimum supply period of raw materials that is not supported by firm, fixed orders and/or projections from collaborators considered to expense inventory			12 months
Charges to research and development expense related to raw material inventory identified as excess	$42,000	$32,000	$434,000	$236,000
Computation of Net Income (Loss) per Common Share
Options outstanding to purchase common stock and unvested restricted stock (in shares)			10,158	8,605

Summary_of_Significant_Account6

Summary of Significant Accounting Policies (Details 4) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	Nov. 11, 2014	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Nov. 11, 2014
	Nov. 11, 2014	Mar. 31, 2015	Mar. 31, 2014	item	Mar. 31, 2014	Nov. 11, 2014
Additional disclosure for options
Cash received for exercise of stock options				$1,432,000	$8,557,000
Financial Instruments and Concentration of Credit Risk
Number of financial institutions in the U.S. in which cash and cash equivalents are primarily maintained				3
2006 Plan
Stock-Based Compensation
Number of employee share-based compensation plans				1
Additional number of shares authorized for issuance	5,500,000
Common stock authorized for issuance (in shares)	17,500,000					17,500,000
Number of shares of common stock added to the Plan from the Former Plan				1,676,599
Additional disclosure for options
Stock compensation expense		3,600,000	3,700,000	12,500,000	12,100,000
Estimated fair value of unvested employee awards, net of estimated forfeitures				22,300,000
Weighted average vesting period of unvested employee awards				2 years
2006 Plan \| Stock options
Weighted-average assumptions used to estimate the fair value of each stock option
Number of group of awards for which expected term is calculated for and applied				1
Dividend (as a percent)		0.00%	0.00%	0.00%	0.00%
Volatility (as a percent)		60.76%	60.44%	60.46%	60.44%
Risk-free interest rate (as a percent)		1.67%	1.94%	1.86%	1.74%
Expected life		6 years 3 months 18 days	6 years 3 months 18 days	6 years 3 months 18 days	6 years 3 months 18 days
Weighted-average grant date fair values of options granted (in dollars per share)		$3.83	$9.52	$6.06	$10.54
Additional disclosure for options
Stock options exercised (in shares)				205,000
Cash received for exercise of stock options				$1,400,000
2006 Plan \| Stock options \| Maximum
Stock-Based Compensation
Vesting period				4 years
Exercise period				10 years
Additional disclosure for options
Exercised (in dollars per share)				$9.88
2006 Plan \| Stock options \| Minimum
Additional disclosure for options
Exercised (in dollars per share)				$3.19

Summary_of_Significant_Account7

Summary of Significant Accounting Policies (Details 5)	3 Months Ended		9 Months Ended
Summary of Significant Accounting Policies (Details 5)	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting
Number of operating segments			1
Biotest \| Revenue
Collaborative Partner:
Percentages of revenue recognized	9.00%	13.00%	4.00%	3.00%
Lilly \| Revenue
Collaborative Partner:
Percentages of revenue recognized	1.00%	15.00%	24.00%	18.00%
Novartis \| Revenue
Collaborative Partner:
Percentages of revenue recognized	44.00%	22.00%	44.00%	40.00%
Roche \| Revenue
Collaborative Partner:
Percentages of revenue recognized	45.00%	37.00%	19.00%	31.00%

Collaborative_Agreements_Detai

Collaborative Agreements (Details) (USD $)	3 Months Ended		9 Months Ended		1 Months Ended	179 Months Ended
Collaborative Agreements (Details) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	31-May-00	Mar. 31, 2015
Collaborative Agreements disclosures
Amount of arrangement consideration included in license and milestone fees	$5,078,000	$305,000	$52,729,000	$39,150,000
Royalties on net sales of Kadcyla	5,099,000	2,558,000	13,890,000	6,946,000
Roche \| Development and Commercialization License \| Kadcyla
Collaborative Agreements disclosures
Payments received under collaboration agreement					2,000,000
Period in arrears to receive royalty reports and payments related to sales of Kadcyla			3 months
Royalties on net sales of Kadcyla	5,100,000	2,600,000	13,900,000	6,900,000
Roche \| Development and Commercialization License \| Kadcyla \| Maximum
Collaborative Agreements disclosures
Potential milestone payments					44,000,000
Roche \| Development and Commercialization License \| Kadcyla \| Development milestones
Collaborative Agreements disclosures
Payments received under collaboration agreement						13,500,000
Potential milestone payments					13,500,000
Roche \| Development and Commercialization License \| Kadcyla \| Regulatory milestones
Collaborative Agreements disclosures
Payments received under collaboration agreement						20,500,000
Potential milestone payments	5,000,000		5,000,000		30,500,000	5,000,000
Roche \| Development and Commercialization License \| Kadcyla \| Regulatory milestones in Japan
Collaborative Agreements disclosures
Payments received under collaboration agreement						5,000,000
Amount of arrangement consideration included in license and milestone fees			$10,000,000
Number of milestone payments received						2

Collaborative_Agreements_Detai1

Collaborative Agreements (Details 2) (USD $)	3 Months Ended		9 Months Ended		1 Months Ended					40 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Nov. 30, 2011	Oct. 31, 2013	Dec. 31, 2012	Nov. 30, 2009	Sep. 30, 2009	Dec. 31, 2012	31-May-13
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	item	Oct. 31, 2013	Dec. 31, 2012	Nov. 30, 2009	Sep. 30, 2009	item	item
Collaborative Agreements disclosures
Amount of arrangement consideration included in license and milestone fees	$5,078,000	$305,000	$52,729,000	$39,150,000
Amgen \| Future Technological Improvements
Collaborative Agreements disclosures
Remaining arrangement consideration to be recognized as license revenue	430,000		430,000
Amgen \| Development and Commercialization License
Collaborative Agreements disclosures
Potential milestone payments						34,000,000
Estimated utilization period after commercialization			10 years
Discount rate (as a percent)			13.00%
Estimated term of development and commercialization license			25 years
Amgen \| Development and Commercialization License \| Phase II clinical trial
Collaborative Agreements disclosures
Potential milestone payments	3,000,000		3,000,000
Amgen \| Development and Commercialization License \| IND application effective
Collaborative Agreements disclosures
Potential milestone payments	1,000,000		1,000,000
Fee received per license					1,000,000
Number of compounds under development and commercialization licenses					2
Number of milestone payments received					2
Amgen \| Development and Commercialization License \| Development milestones
Collaborative Agreements disclosures
Potential milestone payments						9,000,000
Amgen \| Development and Commercialization License \| Regulatory milestones
Collaborative Agreements disclosures
Potential milestone payments						20,000,000
Amgen \| Development and Commercialization License \| Sales milestones
Collaborative Agreements disclosures
Potential milestone payments						5,000,000
Amgen \| Development and Commercialization License \| Exclusive license
Collaborative Agreements disclosures
Amount of arrangement consideration included in license and milestone fees				2,200,000
Number of single-target licenses			4							3
Fee received per license							1,000,000	1,000,000	1,000,000
Fee received on conversion of non-exclusive license agreement to an exclusive license						500,000
Amgen \| Development and Commercialization License \| Non-exclusive license
Collaborative Agreements disclosures
Number of single-target licenses											1
Fee received per license											$500,000

Collaborative_Agreements_Detai2

Collaborative Agreements (Details 3) (USD $)	3 Months Ended		9 Months Ended		1 Months Ended
Collaborative Agreements (Details 3) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2006	Jul. 31, 2003
Collaborative Agreements disclosures
License and milestone fees	$5,078,000	$305,000	$52,729,000	$39,150,000
Sanofi \| Development and Commercialization License
Collaborative Agreements disclosures
Potential milestone payments	2,000,000		2,000,000			30,000,000	21,500,000
License exercise fee, per license						2,000,000
Fee received per license					2,000,000
Payments received under collaboration agreement			20,500,000
License and milestone fees			1,600,000
Sanofi \| Development and Commercialization License \| Development milestones
Collaborative Agreements disclosures
Potential milestone payments	2,000,000		2,000,000			10,000,000	7,500,000
Sanofi \| Development and Commercialization License \| Regulatory milestones
Collaborative Agreements disclosures
Potential milestone payments						20,000,000	14,000,000
Sanofi \| Development and Commercialization License \| SAR650984 \| Development milestones \| Phase IIb Clinical Trial
Collaborative Agreements disclosures
Payments received under collaboration agreement			3,000,000
Sanofi \| Development and Commercialization License \| SAR650984 \| Development milestones \| Phase III Clinical Trial
Collaborative Agreements disclosures
Potential milestone payments	3,000,000		3,000,000
Sanofi \| Development and Commercialization License \| SAR566658 \| Development milestones \| Phase IIb Clinical Trial
Collaborative Agreements disclosures
Potential milestone payments	3,000,000		3,000,000
Sanofi \| Development and Commercialization License \| SAR408701 \| Development milestones \| Phase IIb Clinical Trial
Collaborative Agreements disclosures
Potential milestone payments	3,000,000		3,000,000
Sanofi \| Development and Commercialization License \| SAR408701 \| Development milestones \| Phase I clinical trial
Collaborative Agreements disclosures
Payments received under collaboration agreement			1,000,000
Sanofi \| Development and Commercialization License \| Undisclosed Target \| Development milestones \| Phase I clinical trial
Collaborative Agreements disclosures
Potential milestone payments	$1,000,000		$1,000,000

Collaborative_Agreements_Detai3

Collaborative Agreements (Details 4) (USD $)

3 Months Ended

9 Months Ended

37 Months Ended

1 Months Ended

2 Months Ended

1 Months Ended

13 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Mar. 31, 2015

Mar. 31, 2014

Oct. 31, 2013

Mar. 31, 2013

Oct. 31, 2010

Oct. 31, 2014

Nov. 30, 2013

Jan. 31, 2015

Nov. 30, 2013

Oct. 31, 2014

item

Collaborative Agreements disclosures

Amount of arrangement consideration included in license and milestone fees

$5,078,000

$305,000

$52,729,000

$39,150,000

Novartis

Collaborative Agreements disclosures

Payments received under collaboration agreement

60,200,000

Novartis | Right-to-test agreement

Collaborative Agreements disclosures

Term of agreement

3 years

Term of extension of the agreement

1 year

Payments for extension of agreement

5,000,000

Payments received under collaboration agreement

1,000,000

45,000,000

Payments received under collaboration agreement in connection with amended agreement

3,500,000

Novartis | Right-to-test agreement | Undisclosed Target

Collaborative Agreements disclosures

Number of pre-defined and related undisclosed targets

Novartis | Right-to-test agreement | Exclusive license

Collaborative Agreements disclosures

Number of development and commercialization licenses taken

Novartis | Right-to-test agreement | Exclusive license | Undisclosed Target

Collaborative Agreements disclosures

Number of pre-defined and related undisclosed targets

Novartis | Development and Commercialization License

Collaborative Agreements disclosures

Payments received under collaboration agreement

55,000,000

License exercise fee, per license

1,000,000

Potential milestone payments

199,500,000

Number of development and commercialization licenses taken

Potential milestone payments under second option

238,000,000

Amount of arrangement consideration included in license and milestone fees

25,700,000

17,200,000

Cumulative catch-up amount included in license and milestone fees

1,000,000

Estimated utilization period after commercialization

10 years

Discount rate (as a percent)

16.00%

Estimated term of development and commercialization license

25 years

Novartis | Development and Commercialization License | Phase I clinical trial | LOP628 | Subsequent event

Collaborative Agreements disclosures

Proceeds from License Fees Received

5,000,000

Novartis | Development and Commercialization License | Development milestones

Collaborative Agreements disclosures

Potential milestone payments

22,500,000

Potential milestone payments under second option

22,500,000

Novartis | Development and Commercialization License | Regulatory milestones

Collaborative Agreements disclosures

Potential milestone payments

77,000,000

Potential milestone payments under second option

115,500,000

Novartis | Development and Commercialization License | Sales milestones

Collaborative Agreements disclosures

Potential milestone payments

100,000,000

Potential milestone payments under second option

100,000,000

Novartis | Development and Commercialization License | Future Technological Improvements

Collaborative Agreements disclosures

Payments received under collaboration agreement

4,500,000

Novartis | Development and Commercialization License | Research Services

Collaborative Agreements disclosures

Payments received under collaboration agreement

710,000

Novartis | Development and Commercialization License | Exclusive license

Collaborative Agreements disclosures

Payments received under collaboration agreement

1,000,000

Potential milestone payments

199,500,000

Number of development and commercialization licenses taken

Number of pre-defined and related undisclosed targets

Novartis | Development and Commercialization License | Exclusive license | Phase I clinical trial

Collaborative Agreements disclosures

Potential milestone payments

5,000,000

Novartis | Development and Commercialization License | Exclusive license | Phase II clinical trial

Collaborative Agreements disclosures

Potential milestone payments

$7,500,000

Collaborative_Agreements_Detai4

Collaborative Agreements (Details 5) (USD $)	3 Months Ended		9 Months Ended		40 Months Ended	1 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2011	Aug. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	item	Aug. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Collaborative Agreements disclosures
Amount of arrangement consideration included in license and milestone fees	$5,078,000	$305,000	$52,729,000	$39,150,000
Lilly
Collaborative Agreements disclosures
Payments received under collaboration agreement					28,200,000
Lilly \| Sales milestones
Collaborative Agreements disclosures
Payments received under collaboration agreement					800,000
Lilly \| Future Technological Improvements
Collaborative Agreements disclosures
Payments received under collaboration agreement					600,000
Lilly \| Research Services
Collaborative Agreements disclosures
Payments received under collaboration agreement					3,300,000
Lilly \| Right-to-test agreement
Collaborative Agreements disclosures
Payments received under collaboration agreement						20,000,000
Number of development and commercialization licenses taken						3
Lilly \| Right-to-test agreement \| No exercise fee
Collaborative Agreements disclosures
License exercise fee, per subsequent license						0
Lilly \| Right-to-test agreement \| Exercise fee of $2 million
Collaborative Agreements disclosures
License exercise fee, per subsequent license						2,000,000
Lilly \| Development and Commercialization License
Collaborative Agreements disclosures
Payments received under collaboration agreement					23,500,000
Estimated utilization period after commercialization			10 years
Discount rate (as a percent)			16.00%
Amount of arrangement consideration included in license and milestone fees			15,600,000				7,800,000
Estimated term of development and commercialization license			25 years
Lilly \| Development and Commercialization License \| No exercise fee \| Maximum
Collaborative Agreements disclosures
Potential milestone payments for each subsequent license								200,500,000
Lilly \| Development and Commercialization License \| Exercise fee of $2 million
Collaborative Agreements disclosures
License exercise fee, per subsequent license								2,000,000	2,000,000
Lilly \| Development and Commercialization License \| Exercise fee of $2 million \| Maximum
Collaborative Agreements disclosures
Potential milestone payments for each subsequent license								199,000,000
Lilly \| Development and Commercialization License \| Development milestones \| No exercise fee
Collaborative Agreements disclosures
Potential milestone payments for each subsequent license								30,500,000
Lilly \| Development and Commercialization License \| Development milestones \| Exercise fee of $2 million
Collaborative Agreements disclosures
Potential milestone payments for each subsequent license								29,000,000
Lilly \| Development and Commercialization License \| Development milestones \| Phase I clinical trial
Collaborative Agreements disclosures
Potential milestone payments for each subsequent license	5,000,000		5,000,000		5,000,000
Lilly \| Development and Commercialization License \| Regulatory milestones
Collaborative Agreements disclosures
Potential milestone payments for each subsequent license								70,000,000
Lilly \| Development and Commercialization License \| Sales milestones
Collaborative Agreements disclosures
Potential milestone payments for each subsequent license								$100,000,000
Exclusive license \| Lilly \| Development and Commercialization License
Collaborative Agreements disclosures
Number of development and commercialization licenses taken			3

Collaborative_Agreements_Detai5

Collaborative Agreements (Details 6) (USD $)	3 Months Ended		9 Months Ended		15 Months Ended	1 Months Ended
Collaborative Agreements (Details 6) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Jan. 31, 2014	Jun. 30, 2014
Collaborative Agreements disclosures
License fee revenue	$5,078,000	$305,000	$52,729,000	$39,150,000
Arrangement consideration included in long-term deferred revenue	40,917,000		40,917,000		40,917,000		58,969,000
CytomX
Collaborative Agreements disclosures
Payments received under collaboration agreement					13,100,000
License fee revenue					0
Arrangement consideration included in long-term deferred revenue	13,000,000		13,000,000		13,000,000
CytomX \| Future Technological Improvements
Collaborative Agreements disclosures
Payments received under collaboration agreement					350,000
Fair value of consideration for services received						310,000
CytomX \| Research Services
Collaborative Agreements disclosures
Payments received under collaboration agreement					140,000
Fair value of consideration for services received						12,800,000
CytomX \| Right-to-test agreement
Collaborative Agreements disclosures
Payments received under collaboration agreement					13,000,000	0
CytomX \| Development and Commercialization License
Collaborative Agreements disclosures
Payments received under collaboration agreement					12,700,000
Discount rate (as a percent)			13.00%
Estimated utilization period after commercialization			10 years
Estimated term of development and commercialization license			25 years
CytomX \| Development and Commercialization License \| Maximum
Collaborative Agreements disclosures
Potential milestone payments						160,000,000
Potential milestone payments to be paid						80,000,000
CytomX \| Development and Commercialization License \| Development milestones \| Maximum
Collaborative Agreements disclosures
Potential milestone payments						10,000,000
Potential milestone payments to be paid						7,000,000
CytomX \| Development and Commercialization License \| Development milestones \| Phase I clinical trial
Collaborative Agreements disclosures
Potential milestone payments	1,000,000		1,000,000		1,000,000
Potential milestone payments to be paid						1,000,000
CytomX \| Development and Commercialization License \| Regulatory milestones \| Maximum
Collaborative Agreements disclosures
Potential milestone payments						50,000,000
Potential milestone payments to be paid						23,000,000
CytomX \| Development and Commercialization License \| Sales milestones \| Maximum
Collaborative Agreements disclosures
Potential milestone payments						100,000,000
Potential milestone payments to be paid						$50,000,000

Collaborative_Agreements_Detai6

Collaborative Agreements (Details 7) (Takeda, USD $)	1 Months Ended	9 Months Ended
	Mar. 31, 2015	Mar. 31, 2015
	item	item
Collaborative Agreements disclosures
Payments received under collaboration agreement	$31,400,000
Right-to-test agreement
Collaborative Agreements disclosures
Number of single-target licenses	2
Term of agreement	3 years
Term of extension of the agreement	1 year
Payments to be made for extension of agreement	4,000,000
Payments received under collaboration agreement	20,000,000
Right-to-test agreement \| Maximum
Collaborative Agreements disclosures
Potential milestone payments	210,000,000	210,000,000
Right-to-test agreement \| Development milestones \| Maximum
Collaborative Agreements disclosures
Potential milestone payments	30,000,000	30,000,000
Right-to-test agreement \| Regulatory milestones \| Maximum
Collaborative Agreements disclosures
Potential milestone payments	85,000,000	85,000,000
Right-to-test agreement \| Sales milestones \| Maximum
Collaborative Agreements disclosures
Potential milestone payments	95,000,000	95,000,000
Right-to-test agreement \| Option To Expand Agreement
Collaborative Agreements disclosures
Payments to be made for extension of agreement	8,000,000
Development and Commercialization License
Collaborative Agreements disclosures
Discount rate (as a percent)	13.00%
Estimated utilization period after commercialization	10 years
Estimated term of development and commercialization license	25 years
Development and Commercialization License \| Phase I clinical trial
Collaborative Agreements disclosures
Potential milestone payments	5,000,000	5,000,000
Development and Commercialization License \| Option To Expand Agreement
Collaborative Agreements disclosures
Number of single-target licenses	1
Value of collaborators licenses after extension	8,000,000	8,000,000
Additional term of extension of the agreement		2 years
Number of development and commercialization licenses		2
Development and Commercialization License \| Option to expand agreement for one additional year
Collaborative Agreements disclosures
Term of extension of the agreement		1 year
Payments to be made for extension of agreement		$4,000,000

Capital_Stock_Details

Capital Stock (Details) (USD $)	3 Months Ended		9 Months Ended		129 Months Ended	12 Months Ended
Capital Stock (Details) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Mar. 31, 2014	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2013
2001 Director Plan \| Stock options
Stock-Based Compensation
Stock compensation expense	$18,000	$2,000	($19,000)	($11,000)
Stock units issued (in shares)					0
Compensation Policy for Non-Employee Directors \| Stock options
Stock-Based Compensation
Vesting period			1 year
Stock options granted to directors (in shares)			80,000			80,000	41,805
Compensation Policy for Non-Employee Directors \| Deferred share units
Stock-Based Compensation
Stock compensation expense	$93,000	$118,000	$329,000	$315,000
Vesting period			1 year

Cash_and_Cash_Equivalents_Deta

Cash and Cash Equivalents (Details) (USD $)	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013
In Thousands, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013
Cash and Cash Equivalents
Cash and cash equivalents	$111,827	$142,261	$164,076	$194,960

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	1 Months Ended	9 Months Ended	1 Months Ended
	Apr. 30, 2014	Mar. 31, 2015	Apr. 30, 2013	Dec. 31, 2013	Apr. 30, 2012	Dec. 31, 2009	Jul. 27, 2007
	item	Mar. 31, 2015	sqft	sqft	sqft	sqft	sqft
Minimum rental commitments under the non-cancelable operating lease agreements
2015 (three months remaining)		1,781,000
2016		6,926,000
2017		6,942,000
2018		7,048,000
2019		6,237,000
Thereafter		43,900,000
Total minimum lease payments		72,834,000
Total minimum rental payments from sublease		-395,000
Total minimum lease payments, net		72,439,000
Obligations under capital leases		0
Collaborations
Potential milestone payable		162,000,000
Amount reimbursable by a third party		1,400,000
830 Winter Street, Waltham, MA
Operating leases
Area of space leased (in square feet)							89,000
Additional area of space leased (in square feet)				19,000
Construction allowance receivable	$1,100,000			$746,000
Number of additional terms for which lease agreement can be extended	2
Additional term period for which lease agreement can be extended	5 years
Area of property covered under sublease agreement (in square feet)					7,310	14,100
333 Providence Hwy, Norwood MA
Operating leases
Additional term period for which lease agreement can be extended		5 years
100 River Ridge Drive, Norwood, MA
Operating leases
Area of space leased (in square feet)			7,507
Initial lease term period			5 years 2 months
Additional term period for which lease agreement can be extended			5 years