Immunomedics, Inc. (NASDAQ:IMMU) is a small biopharmaceutical company that develops treatments for cancer, Lupus, and other autoimmune diseases. Its drugs are all in their development stages and the Company has yet to come up with a drug it can sell. Without drug sales, it had a negative net profit in 2007 due to spending $19,841,000 on research. ^[1] In 2006, Immunomedics (IMMU) and UCB (a large, Belgian pharmaceuticals firm) entered a collaboration to fund, produce, and market Immunomedics' lead product, Epratuzumab, a new drug for use in treating cancer and autoimmune diseases like Lupus. ^[2] Through the collaboration, UCB became the primary means of funding Immunomedics' research, giving UCB control over segments of IMMU's business, such as running trials. ^[3] The company faces the challenge of controlling its projects while appeasing fund-contributing companies.

Immunomedics has a smaller amount of capital, with less funding, less marketing, and less ability to obtain approval from the government for testing and manufacturing in comparison to other drug companies. ^[4] Before it starts selling drugs in the US, the Company has to find means of finishing research, getting approved by the FDA, and competing against more powerful pharmaceuticals. However, it claims to have the next generation of therapeutic drugs for cancer and lupus patients; once approved, the effectiveness of these drugs will be the primary factor driving sales.

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