Juno Therapeutics Inc. reported first-quarter 2017 loss of 71 cents per share (including stock-based compensation expenses), wider than the Zacks Consensus Estimate of a loss of 66 cents. The quarterly loss, however, narrowed from the year-ago loss of 79 cents per share.
Shares of the company gained more than 2% in after-market trading. In fact, Juno’s shares significantly outperformed Zacks classified Medical-Biomedical and Genetics industry so far this year. The company’s shares gained 36.1%, while the industry registered an increase of 4.7%.
The development-stage company reported total revenue of $19.3 million in the quarter compared with $9.8 million in the year-ago period. The top-line growth was mainly driven by revenues recognized under Juno’s collaboration agreement with Celgene Corporation and reimbursement of expenses related to research and development of CD19. Revenues also came in above the Zacks Consensus Estimate of $18 million.
The company’s adjusted research and development expenses in the reported quarter decreased 7.6% from the year-ago period to $75.1 million (including stock-based compensation expenses).
General and administrative expenses amounted to $20.7 million (including stock-based compensation expenses), up 29.4%. This was due to increased headcount to support the business, and consulting costs related to commercial readiness and personnel costs.
Pipeline Update
Juno is looking to revolutionize cancer treatment by introducing immunotherapies. The company’s pipeline candidates include JCAR017 and JCAR014.
JCAR017 is presently undergoing a phase I study for non-Hodgkin lymphoma (NHL) and a phase I/II study in pediatric and young adults with r/r ALL. In Dec 2016, the company announced encouraging preliminary clinical data from the study. The data demonstrated 60% complete response in patients with relapsed or refractory aggressive cd19+ NHL.
However, this March, Juno announced that it is currently discontinuing the development of JCAR015 for r/r ALL due to the toxicity witnessed in the phase II ROCKET trial. The company will now redirect the funds toward the development of a defined cell product candidate in the adult r/r ALL setting.
We remind the investors that Juno faced a major setback related to the development of JCAR015. In Jul 2016, the FDA placed a clinical hold on the company’s ROCKET study, evaluating JCAR015 for the treatment of relapsed or refractory B cell acute lymphoblastic leukemia (r/r ALL) as two patients died within a week due to severe neurotoxicity after the recent addition of fludarabine to the pre-conditioning regimen.
Though the hold was lifted a week later and the study was resumed under a revised protocol, the company voluntarily placed the study on hold in Nov 2016.
2017 Guidance
The company expects cash burn guidance outside the impact of any inflows or outflows from upfront payments related to business development in the range of $270–$300 million.
Zacks Rank & Key Picks
Juno currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Galena Biopharma, Inc. and Aeglea Biotherapeutics, Inc. . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Galena’s loss per share estimates narrowed from $2.03 to 58 cents for 2017, over the last 60 days. The company posted positive earnings surprises in two of the four trailing quarters with an average beat of 53.83%.
Aeglea’s loss per share estimates narrowed from $3.64 to $2.48 for 2017 over the last 30 days. The company’s shares gained 54.7% so far this year.
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 >>
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Juno Therapeutics (JUNO) Posts Wider-than-Expected Q1 Loss
Juno Therapeutics Inc. reported first-quarter 2017 loss of 71 cents per share (including stock-based compensation expenses), wider than the Zacks Consensus Estimate of a loss of 66 cents. The quarterly loss, however, narrowed from the year-ago loss of 79 cents per share.
Shares of the company gained more than 2% in after-market trading. In fact, Juno’s shares significantly outperformed Zacks classified Medical-Biomedical and Genetics industry so far this year. The company’s shares gained 36.1%, while the industry registered an increase of 4.7%.
The development-stage company reported total revenue of $19.3 million in the quarter compared with $9.8 million in the year-ago period. The top-line growth was mainly driven by revenues recognized under Juno’s collaboration agreement with Celgene Corporation and reimbursement of expenses related to research and development of CD19. Revenues also came in above the Zacks Consensus Estimate of $18 million.
The company’s adjusted research and development expenses in the reported quarter decreased 7.6% from the year-ago period to $75.1 million (including stock-based compensation expenses).
General and administrative expenses amounted to $20.7 million (including stock-based compensation expenses), up 29.4%. This was due to increased headcount to support the business, and consulting costs related to commercial readiness and personnel costs.
Pipeline Update
Juno is looking to revolutionize cancer treatment by introducing immunotherapies. The company’s pipeline candidates include JCAR017 and JCAR014.
JCAR017 is presently undergoing a phase I study for non-Hodgkin lymphoma (NHL) and a phase I/II study in pediatric and young adults with r/r ALL. In Dec 2016, the company announced encouraging preliminary clinical data from the study. The data demonstrated 60% complete response in patients with relapsed or refractory aggressive cd19+ NHL.
However, this March, Juno announced that it is currently discontinuing the development of JCAR015 for r/r ALL due to the toxicity witnessed in the phase II ROCKET trial. The company will now redirect the funds toward the development of a defined cell product candidate in the adult r/r ALL setting.
We remind the investors that Juno faced a major setback related to the development of JCAR015. In Jul 2016, the FDA placed a clinical hold on the company’s ROCKET study, evaluating JCAR015 for the treatment of relapsed or refractory B cell acute lymphoblastic leukemia (r/r ALL) as two patients died within a week due to severe neurotoxicity after the recent addition of fludarabine to the pre-conditioning regimen.
Though the hold was lifted a week later and the study was resumed under a revised protocol, the company voluntarily placed the study on hold in Nov 2016.
2017 Guidance
The company expects cash burn guidance outside the impact of any inflows or outflows from upfront payments related to business development in the range of $270–$300 million.
Juno Therapeutics, Inc. Price, Consensus and EPS Surprise
Juno Therapeutics, Inc. Price, Consensus and EPS Surprise | Juno Therapeutics, Inc. Quote
Zacks Rank & Key Picks
Juno currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Galena Biopharma, Inc. and Aeglea Biotherapeutics, Inc. . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Galena’s loss per share estimates narrowed from $2.03 to 58 cents for 2017, over the last 60 days. The company posted positive earnings surprises in two of the four trailing quarters with an average beat of 53.83%.
Aeglea’s loss per share estimates narrowed from $3.64 to $2.48 for 2017 over the last 30 days. The company’s shares gained 54.7% so far this year.
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 >>