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What's in Store for ImmunoGen (IMGN) this Earnings Season?

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ImmunoGen, Inc. is scheduled to report results for the three months ended Dec 31, 2016 on Feb 17, before the opening bell. ImmunoGen’s track record has been disappointing with the company missing expectations in each of the last four reported quarters. Overall, the company has posted an average negative surprise of 19.34%.

However, ImmunoGen’s shares outperformed the Zacks classified Medical-Drugs industry by gaining 20.6% so far this year, while the industry witnessed an increase of 5%.



In the last reported quarter, ImmunoGen recorded a negative surprise of 21.05%. Will ImmunoGen disappoint again? Let’s see how things are shaping up for this quarter.

Factors at Play

ImmunoGen is a development-stage biotech company that focuses on the development of targeted anticancer therapeutics using its antibody-drug conjugate (ADC) technology. On Oct 2016 the company updated its guidance for the six months ended Dec 2016. The company lowered its revenue guidance to the range of $25–$30 million (previous projection: $40–$45 million).

Net loss is projected in the range of $70–$75 million (old guidance: $95–$100 million) for the six months ended Dec 2016. Given that ImmunoGen does not have any approved product in its portfolio yet, investor focus should remain on the company’s progress with its lead pipeline candidate, mirvetuximab soravtansine and other programs.

In the quarter (Dec 2016), ImmunoGen made significant progress with regard to mirvetuximab soravtansine. ImmunoGen announced positive data from a 46-patient phase I cohort evaluating the efficacy and safety of mirvetuximab soravtansine as a single-agent therapy for platinum-resistant, FRα-positive ovarian cancer. On the basis of these data, the company has initiated the phase III study, FORWARD I. The study will evaluate mirvetuximab soravtansine as single-agent therapy in patients with platinum-resistant ovarian cancer who previously received up to three treatment regimens and whose cancer has a medium or high FR alpha expression.

Meanwhile, combination regimens with mirvetuximab soravtansine in ovarian cancer are in the phase Ib/II FORWARD II study, which aim to expand the eligible patient population. ImmunoGen expects to report initial data from the FORWARD II study in the second quarter of 2017.

We expect the management to through some light on further development of the product in the quarter.

Earnings Whispers

Our proven model does not conclusively show that ImmunoGen is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.

Zacks ESP: The Earnings ESP for ImmunoGen is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 38 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ImmunoGen currently carries a Zacks Rank #4. As it is, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement.

ImmunoGen, Inc. Price and EPS Surprise

 

ImmunoGen, Inc. Price and EPS Surprise | ImmunoGen, Inc. Quote

Stocks That Warrant a Look

Here are some health care stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Pacira Pharmaceuticals, Inc. (PCRX - Free Report) is expected to release results on Feb 23. The company has an Earnings ESP of +20% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +5% and a Zacks Rank #2. The company is expected to release results on Feb 21.

BioMarin Pharmaceutical Inc. (BMRN - Free Report) is expected to release results on Feb 23. The company has an Earnings ESP of +7.50% and a Zacks Rank #3.

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