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AVEO (AVEO) Reports a Wider Loss in Q2, Tivozanib in Focus
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AVEO Pharmaceuticals, Inc. reported a second-quarter 2016 loss of 13 cents per share, a penny narrower than the Zacks Consensus Estimate but wider than the year-ago loss of 10 cents.
AVEO does not have any approved product in its portfolio. The company recognizes revenues in the form of collaboration revenues, milestone and other payments. The company’s total collaboration revenue in the second quarter of 2016 was approximately $0.2 million, up from $0.1 million in the year-ago quarter. The increase was primarily due to $0.1 million in revenue recognized in the second quarter of 2016 related to the out-licensing agreement with EUSA Pharma, which was executed in Dec 2015.
Tivozanib in Focus
Research & development expenses shot up 204.4% year over year to $5.6 million, mainly due to the preparation of a phase III study on tivozanib. General and administrative expenses decreased 40.1% year over year to $1.7 million. The decline was mainly due to continued reduction in facilities and other operating expenses following the completion of restructuring in the first quarter of 2015.
During the quarter, AVEO announced the dosing of the first patient in a randomized, controlled, multi-center, and open-label pivotal phase III study (TIVO-3) comparing its lead pipeline candidate tivozanib to Nexavar for the treatment of refractory advanced renal cell carcinoma (RCC). Enrollment is expected to be completed in 2017 and top-line data from the study is anticipated in the first quarter of 2018. Results from the TIVO-3 study, along with the previously completed TIVO-1 study on tivozanib for the first-line treatment of RCC, are expected to support a first- and third-line indication for the candidate in the U.S.
Regulatory application seeking approval for tivozanib for the first-line treatment of RCC is currently under review in Europe. The application was submitted by AVEO’s partner, EUSA Pharma.
AVEO continues to expect its cash resources to fund its current operations into the fourth quarter of 2017. AVEO expects that its cash resources, its borrowing capacity under its amended loan agreement, together with certain anticipated operational milestone payments from its collaboration partners, could allow the company to fund its U.S. tivozanib development strategy through at least TIVO-3 study top-line data as well as a tivozanib-PD-1 inhibitor combination study.
AVEO is a Zack Rank #2 (Buy) stock. Some favorably ranked stocks in the health care sector include Geron Corporation (GERN - Free Report) , Anika Therapeutics Inc. (ANIK - Free Report) and Corcept Therapeutics Incorporated (CORT - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy).
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AVEO (AVEO) Reports a Wider Loss in Q2, Tivozanib in Focus
AVEO Pharmaceuticals, Inc. reported a second-quarter 2016 loss of 13 cents per share, a penny narrower than the Zacks Consensus Estimate but wider than the year-ago loss of 10 cents.
AVEO does not have any approved product in its portfolio. The company recognizes revenues in the form of collaboration revenues, milestone and other payments. The company’s total collaboration revenue in the second quarter of 2016 was approximately $0.2 million, up from $0.1 million in the year-ago quarter. The increase was primarily due to $0.1 million in revenue recognized in the second quarter of 2016 related to the out-licensing agreement with EUSA Pharma, which was executed in Dec 2015.
Tivozanib in Focus
Research & development expenses shot up 204.4% year over year to $5.6 million, mainly due to the preparation of a phase III study on tivozanib.
General and administrative expenses decreased 40.1% year over year to $1.7 million. The decline was mainly due to continued reduction in facilities and other operating expenses following the completion of restructuring in the first quarter of 2015.
During the quarter, AVEO announced the dosing of the first patient in a randomized, controlled, multi-center, and open-label pivotal phase III study (TIVO-3) comparing its lead pipeline candidate tivozanib to Nexavar for the treatment of refractory advanced renal cell carcinoma (RCC). Enrollment is expected to be completed in 2017 and top-line data from the study is anticipated in the first quarter of 2018. Results from the TIVO-3 study, along with the previously completed TIVO-1 study on tivozanib for the first-line treatment of RCC, are expected to support a first- and third-line indication for the candidate in the U.S.
Regulatory application seeking approval for tivozanib for the first-line treatment of RCC is currently under review in Europe. The application was submitted by AVEO’s partner, EUSA Pharma.
AVEO continues to expect its cash resources to fund its current operations into the fourth quarter of 2017. AVEO expects that its cash resources, its borrowing capacity under its amended loan agreement, together with certain anticipated operational milestone payments from its collaboration partners, could allow the company to fund its U.S. tivozanib development strategy through at least TIVO-3 study top-line data as well as a tivozanib-PD-1 inhibitor combination study.
AVEO PHARMACEUT Price and EPS Surprise
AVEO PHARMACEUT Price and EPS Surprise | AVEO PHARMACEUT Quote
AVEO is a Zack Rank #2 (Buy) stock. Some favorably ranked stocks in the health care sector include Geron Corporation (GERN - Free Report) , Anika Therapeutics Inc. (ANIK - Free Report) and Corcept Therapeutics Incorporated (CORT - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>