We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Conatus Pharma (CNAT) Incurs Wider-than-Expected Loss in Q4
Read MoreHide Full Article
Conatus Pharmaceuticals Inc. reported fourth-quarter 2016 loss of 35 cents per share, wider than both the Zacks Consensus Estimate of a loss of 32 cents and the year-ago figure of 30 cents.
Conatus’ shares have traded below the Zacks classified Medical Products industry so far this year. Shares of the company lost 6.8% while the industry registered an increase of 10.3%.
Conatus has no approved product in its portfolio at the moment. However, the company recognized $0.8 million as collaboration revenues for the fourth quarter 2016 compared with no revenue in the year-ago quarter. The collaboration revenues were related to an agreement with Novartis AG (NVS - Free Report) , which was inked in Dec 2016, for the worldwide development and commercialization of Conatus’ lead candidate, emricasan, as a single agent treatment for NASH (Nonalcoholic steatohepatitis) cirrhosis in both compensated and decompensated patients.
In the fourth quarter, research and development expenses were $6.5 million, up 54.8% from the year-ago quarter. This was mainly due to an increase in external cost related to emricasan. General and administrative expenses were $3.5 million, up 94.4% from the year-ago quarter. This was due to an increase in personnel costs and higher consulting, legal and accounting fees.
Emricasan in Focus
Emricasan is being developed for the treatment of patients with chronic liver disease.
In Nov 2016, Conatus initiated a placebo-controlled, phase IIb study evaluating the effect of emricasan for the reduction of hepatic venous pressure gradient (HVPG) in patients with compensated or early decompensated liver cirrhosis caused by NASH, and severe portal hypertension confirmed by HVPG of ≥12 mmHg at baseline. Data after 24 weeks of twice-daily treatment with emricasan or placebo are anticipated in 2018.
The company is conducting two additional phase IIb studies on emricasan. These include the POLT-HCV-SVR study evaluating potential improvements in Ishak fibrosis score in post-orthotropic liver transplant (POLT) recipients with liver fibrosis or cirrhosis post-transplant caused by recurrent hepatitis C virus (HCV) infection in those who have successfully achieved a sustained viral response (SVR) following HCV antiviral therapy. Data are expected in the first half of 2018.
ENCORE-NF is the other study evaluating potential improvements in fibrosis and steatohepatitis in patients with fibrosis caused by NASH. Results are expected in 2018.
The company also plans to initiate two other studies – ENCORE-LF and ENCORE-XT – on emricasan under the ENCORE program. The ENCORE-LF trial is expected to start in the second quarter of 2017.
We expect investor focus to remain on updates pertaining to the candidate’s development.
2016 Results
Full-year revenue totaled $0.80 million compared to no revenue a year ago.
Full-year loss of $1.31 per share was wider than Zacks Consensus Estimate of a loss of $1.28. The company had incurred a loss of $1.30 per share a year ago.
2017 Guidance
Cash, cash equivalents and marketable securities are expected between $45 million and $55 million by year-end 2017.
Conatus expects its current financial resources to be sufficient for continuing operations through the end of 2019. However, the company would need additional capital to fully implement its development plans. It expects to achieve this through financing opportunities, strategic partnerships or a combination of both.
Conatus Pharmaceuticals Inc. Price, Consensus and EPS Surprise
Addus HomeCare’s earnings per share estimates increased from $1.38 to $1.41 for 2017 over the last 30 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 10.10%.
BioCryst Pharma’s loss per share estimates narrowed from 88 cents to 66 cents for 2017 and from a loss of 93 cents to 70 cents over the last 30 days. The company posted positive earnings surprises in three of the four trailing quarters, with an average beat of 20%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Conatus Pharma (CNAT) Incurs Wider-than-Expected Loss in Q4
Conatus Pharmaceuticals Inc. reported fourth-quarter 2016 loss of 35 cents per share, wider than both the Zacks Consensus Estimate of a loss of 32 cents and the year-ago figure of 30 cents.
Conatus’ shares have traded below the Zacks classified Medical Products industry so far this year. Shares of the company lost 6.8% while the industry registered an increase of 10.3%.
Conatus has no approved product in its portfolio at the moment. However, the company recognized $0.8 million as collaboration revenues for the fourth quarter 2016 compared with no revenue in the year-ago quarter. The collaboration revenues were related to an agreement with Novartis AG (NVS - Free Report) , which was inked in Dec 2016, for the worldwide development and commercialization of Conatus’ lead candidate, emricasan, as a single agent treatment for NASH (Nonalcoholic steatohepatitis) cirrhosis in both compensated and decompensated patients.
In the fourth quarter, research and development expenses were $6.5 million, up 54.8% from the year-ago quarter. This was mainly due to an increase in external cost related to emricasan. General and administrative expenses were $3.5 million, up 94.4% from the year-ago quarter. This was due to an increase in personnel costs and higher consulting, legal and accounting fees.
Emricasan in Focus
Emricasan is being developed for the treatment of patients with chronic liver disease.
In Nov 2016, Conatus initiated a placebo-controlled, phase IIb study evaluating the effect of emricasan for the reduction of hepatic venous pressure gradient (HVPG) in patients with compensated or early decompensated liver cirrhosis caused by NASH, and severe portal hypertension confirmed by HVPG of ≥12 mmHg at baseline. Data after 24 weeks of twice-daily treatment with emricasan or placebo are anticipated in 2018.
The company is conducting two additional phase IIb studies on emricasan. These include the POLT-HCV-SVR study evaluating potential improvements in Ishak fibrosis score in post-orthotropic liver transplant (POLT) recipients with liver fibrosis or cirrhosis post-transplant caused by recurrent hepatitis C virus (HCV) infection in those who have successfully achieved a sustained viral response (SVR) following HCV antiviral therapy. Data are expected in the first half of 2018.
ENCORE-NF is the other study evaluating potential improvements in fibrosis and steatohepatitis in patients with fibrosis caused by NASH. Results are expected in 2018.
The company also plans to initiate two other studies – ENCORE-LF and ENCORE-XT – on emricasan under the ENCORE program. The ENCORE-LF trial is expected to start in the second quarter of 2017.
We expect investor focus to remain on updates pertaining to the candidate’s development.
2016 Results
Full-year revenue totaled $0.80 million compared to no revenue a year ago.
Full-year loss of $1.31 per share was wider than Zacks Consensus Estimate of a loss of $1.28. The company had incurred a loss of $1.30 per share a year ago.
2017 Guidance
Cash, cash equivalents and marketable securities are expected between $45 million and $55 million by year-end 2017.
Conatus expects its current financial resources to be sufficient for continuing operations through the end of 2019. However, the company would need additional capital to fully implement its development plans. It expects to achieve this through financing opportunities, strategic partnerships or a combination of both.
Conatus Pharmaceuticals Inc. Price, Consensus and EPS Surprise
Conatus Pharmaceuticals Inc. Price, Consensus and EPS Surprise | Conatus Pharmaceuticals Inc. Quote
Zacks Rank & Key Picks
Conatus currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector include Addus HomeCare Corporation (ADUS - Free Report) and BioCryst Pharmaceuticals, Inc. (BCRX - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Addus HomeCare’s earnings per share estimates increased from $1.38 to $1.41 for 2017 over the last 30 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 10.10%.
BioCryst Pharma’s loss per share estimates narrowed from 88 cents to 66 cents for 2017 and from a loss of 93 cents to 70 cents over the last 30 days. The company posted positive earnings surprises in three of the four trailing quarters, with an average beat of 20%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>