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Immune Design (IMDZ) Posts Wider-than-Expected Q2 Loss

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Immune Design Corp. reported a second-quarter 2016 loss of 71 cents per share, wider than both the Zacks Consensus Estimate of 68 cents and the year-ago loss of 54 cents.

Quarter in Detail

Immune Design’s total revenue was $1.1 million, down from $1.8 million in the year-ago quarter but above the Zacks Consensus Estimate of $1 million. The top line included collaboration revenues from Sanofi (SNY - Free Report) related to the development of G103.

Research and development (R&D) expenses shot up 34.2% to $11.4 million primarily due to expenditure related to the advancement of the CMB305 and LV305 programs to phase I and phase II clinical trials, and the development of G103. General and administrative expenses were also up 4.5% to $3.9 million.

IMMUNE DESIGN Price, Consensus and EPS Surprise

IMMUNE DESIGN Price, Consensus and EPS Surprise | IMMUNE DESIGN Quote

Pipeline Update

The company is developing multiple candidates using its two discovery platforms – ZVex and GLAAS – for the treatment of various types of cancer. Key pipeline candidates include CMB305 and G100. CMB305 has been designed under a prime-boost approach, involving the sequential dosing of two complementary agents – LV305 (from the ZVex platform) and G305.

A randomized phase II trial on CMB305, in combination with Tecentriq compared to Tecentriq alone, for locally advanced, relapsed or metastatic soft tissue sarcoma (STS) is currently underway. An independent data monitoring committee reviewed safety data from part 1 of the study and advised the company to proceed to part 2, in which patients are being actively enrolled.  Early data from a single-agent phase I study in 14 patients with STS showed positive results.

Meanwhile, Immune Design is collaborating with Merck & Co. Inc. (MRK - Free Report) to evaluate G100 and LV305, in combination with Merck’s Keytruda, in phase I studies for the treatment of patients with non-Hodgkin’s lymphoma (NHL) and melanoma, respectively. We remind investors that the company has completed a phase I study on G100 in patients with merkel cell carcinoma. The company presented positive final data from this study in Jun 2016.

The company has also initiated a randomized phase II study evaluating the safety and efficacy of G100 with low-dose local radiation, and Keytruda, in patients with follicular NHL. Enrollment is ongoing. Part 1 of the study (dose escalation of G100 with a fixed dose of low-dose radiation without Keytruda), is complete and has been deemed safe by an independent data monitoring committee. Part 2, in which patients are currently being randomized to receive G100 and radiation alone or in combination with Keytruda, is in process. Data are expected in 2017.

Going forward, we expect investor focus to remain on further pipeline updates by the company.

Immune Design carries a Zacks Rank #4 (Sell). A better-ranked stock in the health care sector is Pacira Pharmaceuticals (PCRX - Free Report) , with a Zacks Rank #1 (Strong Buy).

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