Back to top

Analyst Blog

ImmunoGen Inc. (IMGN - Snapshot Report) reported fourth quarter fiscal 2013 (ending Jun 30) loss of 26 cents per share, narrower than the Zacks Consensus Estimate of a loss of 30 cents and the year-ago loss of 29 cents per share. The narrower loss was primarily due to higher revenues.

ImmunoGen’s revenues in the reported quarter came in at $3.8 million, up 29.8% year over year. The increase in revenues was primarily due to higher research and development support fees. Revenues in the fourth quarter were however below the Zacks Consensus Estimate of $4 million.

Quarter in Details

ImmunoGen’s revenues comprise research and development support fees, license and milestone fees and clinical material reimbursement. The company recorded $2.2 million of research and development support fees in the fourth quarter of fiscal 2013 compared with $1.2 million in the year-ago period.

ImmunoGen received $0.9 million of license and milestone fees during the quarter compared with $1 million received in the year-ago quarter. The company recorded $0.2 million of clinical material reimbursement during the quarter in comparison to $0.8 million in the same period last year.

Meanwhile, the company’s total operating expenses during the quarter increased 2% to $25.8 million. ImmunoGen reported research and development (R&D) expenses of $20.4 million during the quarter, up 4.4% year over year. The increase in R&D expenses was primarily due to higher expenses related to pipeline development. We are impressed by the company’s efforts to develop its pipeline.

General and administrative expenses in the fourth quarter of fiscal 2013 declined 3.2% to $5.4 million.

Annual results

ImmunoGen Inc. reported full year fiscal 2013 (ending Jun 30) loss of 87 cents per share, narrower than the Zacks Consensus Estimate of a loss of 90 cents and the year-ago loss of 95 cents per share.

ImmunoGen’s revenues in fiscal 2013 came in at $35.5 million, up 117.2% year over year. The massive increase in revenues was primarily due to the presence of a $10.5 million milestone payment from Roche Holding (RHHBY - Analyst Report) for the approval of Kadcyla in the U.S. during the year along with an $11 million amortization of upfront license fees from Novartis (NVS - Snapshot Report). Revenues were just shy of the Zacks Consensus Estimate of $36 million.

We note that ImmunoGen receives and recognizes royalties on Kadcyla sales under an agreement with Roche. The drug was approved in the U.S. in Feb 2013, for the treatment of patients suffering from HER2-positive metastatic breast cancer (mBC). The drug is also under review in the EU and Japan. Kadcyla is also being studied for a number of additional indications.

Outlook for Fiscal 2014

Apart from releasing its financial results, ImmunoGen provided its guidance for fiscal 2014. The company expects revenues for fiscal year 2014 in the range of $66–$70 million. The pre-earnings Zacks Consensus Estimate of $51 million was however well below the company’s guidance. ImmunoGen expects net loss in the range of $72 to $76 million in fiscal year 2014. The company meanwhile expects its expenses to be between $140 million and $144 million.

ImmunoGen presently carries a Zacks Rank #3 (Hold). Meanwhile, other stocks such as Actelion Ltd. (ALIOF) look better positioned with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ALASKA AIR… ALK 96.79 +2.26%
PILGRIMS PR… PPC 29.50 +1.90%
SASOL LTD -… SSL 58.83 +1.78%
NSK LTD -UN… NPSKY 26.70 +1.52%
CTPARTNERS… CTP 10.99 +1.29%