What's behind IGMS Q2 earnings crash?

IGM Biosciences' Q2 earnings crash can be attributed to a combination of factors: 1. **Strategic Shift and Pipeline Discontinuation**: IGM Biosciences has recently undergone a strategic shift, including the discontinuation of two drug candidates, imvotamab and IGM-2644, for the treatment of autoimmune diseases. This strategic pivot likely had a significant impact on the company's financial performance, as it may have affected the company's revenue streams and operational efficiency. 2. **Workforce Reduction**: The company has laid off 73% of its staff, which could lead to reduced operational costs but also indicates underlying challenges within the organization. Such a significant reduction in workforce may have disrupted the company's ability to maintain its product pipeline and meet its financial obligations. 3. **Financial Report Period**: The latest report period for IGM Biosciences is for Q4 2024. It is possible that the company's financial performance in Q2 2025 was influenced by the strategic changes and pipeline discontinuations that were announced after the Q4 report period, indicating a potential decline in revenue and profitability. In summary, IGM Biosciences' Q2 earnings crash is likely a result of a combination of strategic shifts, pipeline discontinuations, workforce reduction, and the timing of these events in relation to the company's financial reporting periods.