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ImmunoGen (IMGN) Reports Wider-than-Expected Loss in Q4
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ImmunoGen, Inc. reported a loss of 51 cents per share in the fourth-quarter of fiscal 2016, wider than both the Zacks Consensus Estimate of a loss of 41 cents and the year-ago loss of 35 cents.
Since ImmunoGen does not have any approved product in its portfolio yet, the company earns revenues in the form of royalties, license and milestone payments, and research and development support fees paid by its partners.
Revenues came in at $7.4 million in the fourth quarter of fiscal 2016, down 41.3% from the year-ago period, and missed the Zacks Consensus Estimate of $17 million.
Research and development (R&D) expenses, however, increased 23.2% from the year-ago level to $37.5 million. Likewise, selling, general and administrative (SG&A) expenses were up 28.1% to $9.3 million.
For fiscal 2016, ImmunoGen reported a loss of $1.65 per share, again wider than the Zacks Consensus Estimate of a loss of $1.55 and the year-ago loss of 71 cents.
Moreover, full-year revenues plunged 29.9% to $60 million and were below the Zacks Consensus Estimate of $69.1 million.
Pipeline Update
ImmunoGen continues to progress with its pipeline. Currently, the company is evaluating its lead candidate, mirvetuximab soravtansine, in a phase Ib/II study (FORWARD II) in combination with other approved anticancer agents, for the treatment of ovarian cancer. In addition, the company expects to initiate a phase III study (FORWARD I) on the candidate in 2016. ImmunoGen has initiated a phase I study on IMGN779 for the treatment of acute myeloid leukemia. Initial data from the study should be out in 2017.
Outlook
ImmunoGen is transitioning to a fiscal year ending Dec 31, effective Jan 1, 2017. The company has provided its guidance for the six-month period (Jul 1 to Dec 31).
Revenues are expected in the range of $40 million to $45 million. Operating expenses, including R&D and SG&A expenditures, are expected in the range of $95 million to $100 million. The company expects net loss of $55–$60 million.
ImmunoGen’s fourth-quarter results were disappointing with the company reporting a wider-than-expected loss and revenues missing estimates. With no approved products in its kitty, we expect investor focus to remain on the development of the company’s lead candidate and other pipeline updates.
ImmunoGen is a Zacks Rank #4 (Sell) stock. Some better-ranked stocks in the health care sector are Anika Therapeutics Inc. (ANIK - Free Report) , Geron Corporation (GERN - Free Report) and Corcept Therapeutics Inc. (CORT - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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ImmunoGen (IMGN) Reports Wider-than-Expected Loss in Q4
ImmunoGen, Inc. reported a loss of 51 cents per share in the fourth-quarter of fiscal 2016, wider than both the Zacks Consensus Estimate of a loss of 41 cents and the year-ago loss of 35 cents.
Since ImmunoGen does not have any approved product in its portfolio yet, the company earns revenues in the form of royalties, license and milestone payments, and research and development support fees paid by its partners.
Revenues came in at $7.4 million in the fourth quarter of fiscal 2016, down 41.3% from the year-ago period, and missed the Zacks Consensus Estimate of $17 million.
Research and development (R&D) expenses, however, increased 23.2% from the year-ago level to $37.5 million. Likewise, selling, general and administrative (SG&A) expenses were up 28.1% to $9.3 million.
For fiscal 2016, ImmunoGen reported a loss of $1.65 per share, again wider than the Zacks Consensus Estimate of a loss of $1.55 and the year-ago loss of 71 cents.
Moreover, full-year revenues plunged 29.9% to $60 million and were below the Zacks Consensus Estimate of $69.1 million.
Pipeline Update
ImmunoGen continues to progress with its pipeline. Currently, the company is evaluating its lead candidate, mirvetuximab soravtansine, in a phase Ib/II study (FORWARD II) in combination with other approved anticancer agents, for the treatment of ovarian cancer. In addition, the company expects to initiate a phase III study (FORWARD I) on the candidate in 2016. ImmunoGen has initiated a phase I study on IMGN779 for the treatment of acute myeloid leukemia. Initial data from the study should be out in 2017.
Outlook
ImmunoGen is transitioning to a fiscal year ending Dec 31, effective Jan 1, 2017. The company has provided its guidance for the six-month period (Jul 1 to Dec 31).
Revenues are expected in the range of $40 million to $45 million. Operating expenses, including R&D and SG&A expenditures, are expected in the range of $95 million to $100 million. The company expects net loss of $55–$60 million.
IMMUNOGEN INC Price and EPS Surprise
IMMUNOGEN INC Price and EPS Surprise | IMMUNOGEN INC Quote
Our Take
ImmunoGen’s fourth-quarter results were disappointing with the company reporting a wider-than-expected loss and revenues missing estimates. With no approved products in its kitty, we expect investor focus to remain on the development of the company’s lead candidate and other pipeline updates.
ImmunoGen is a Zacks Rank #4 (Sell) stock. Some better-ranked stocks in the health care sector are Anika Therapeutics Inc. (ANIK - Free Report) , Geron Corporation (GERN - Free Report) and Corcept Therapeutics Inc. (CORT - Free Report) . Each of these stocks sports 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 >>