It has been about a month since the last earnings report for Epizyme, Inc. . Shares have lost about 19.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Epizyme Incurs Narrower-than-Expected Loss in Q1
Epizyme reported a loss of $0.56 per share in the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $0.63 but wider than the year-ago loss of $0.41.
Quarter in Detail
With no approved products in its portfolio yet, Epizyme relies heavily on its collaborators for revenues. In this quarter, the company didn’t receive any revenues from its collaborations against $0.5 million received in the year-ago quarter. The company also missed the Zacks Consensus Estimate of $0.49 million.
Research and development (R&D) expenses increased 39.5% year over year to $24.7 million. The upside was primarily driven by the expansion of clinical studies of tazemetostat in several indications and initiation of advance phases in other pipeline candidates.
General and administrative (G&A) expenses were $8.3 million in the quarter, up 43.1% from the year-ago quarter. The increase was owing to a rise in expenses related to pre-commercial, intellectual property, business development and product planning.
The company had $211.2 million of cash, cash equivalents and marketable securities as of Mar 31, 2017 and expects that it will be sufficient to fund its planned operations at least till the third quarter of 2018.
Pipeline Update
Epizyme continues to advance its lead candidate, tazemetostat, in multiple clinical trials in a range of solid tumors and hematological malignancies, and as both a monotherapy and in combination with other anti-cancer agents. In fact, the company has collaborated with Roche Holding AG to evaluate tazemetostat in combination with Tecentriq.
In Jan 2017, Epizyme completed enrolment in all wild type EZH2 cohorts of phase II study of tazemetostat for the treatment of patients with relapsed or refractory follicular lymphoma (FL) and diffuse large B-cell lymphoma (DLBCL). Interim data from this study is expected in June. Later this week, the company is anticipated to provide interim data from another phase II study for the treatment of molecularly defined solid tumors indication.
In Mar 2017, the company initiated a separate study to evaluate tazemetostat in combination with prednisolone in relapsed or refractory patients with DLBCL.
Subsequent to the quarter, in April, tazemetostat was granted fast track designation by the FDA for the treatment of patients with relapsed or refractory FL, including all wild type EZH2 or EZH2 activating mutations. Per the licensing agreement, Epizyme received a $10 million payment from partner GlaxoSmithKline plc for the initiation of GLP toxicology studies for a first-in-class methyltransferase inhibitor by the latter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Epizyme, Inc. Price and Consensus
VGM Scores
At this time, the stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum investors based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
Image: Bigstock
Epizyme (EPZM) Down 19.2% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Epizyme, Inc. . Shares have lost about 19.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Epizyme Incurs Narrower-than-Expected Loss in Q1
Epizyme reported a loss of $0.56 per share in the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $0.63 but wider than the year-ago loss of $0.41.
Quarter in Detail
With no approved products in its portfolio yet, Epizyme relies heavily on its collaborators for revenues. In this quarter, the company didn’t receive any revenues from its collaborations against $0.5 million received in the year-ago quarter. The company also missed the Zacks Consensus Estimate of $0.49 million.
Research and development (R&D) expenses increased 39.5% year over year to $24.7 million. The upside was primarily driven by the expansion of clinical studies of tazemetostat in several indications and initiation of advance phases in other pipeline candidates.
General and administrative (G&A) expenses were $8.3 million in the quarter, up 43.1% from the year-ago quarter. The increase was owing to a rise in expenses related to pre-commercial, intellectual property, business development and product planning.
The company had $211.2 million of cash, cash equivalents and marketable securities as of Mar 31, 2017 and expects that it will be sufficient to fund its planned operations at least till the third quarter of 2018.
Pipeline Update
Epizyme continues to advance its lead candidate, tazemetostat, in multiple clinical trials in a range of solid tumors and hematological malignancies, and as both a monotherapy and in combination with other anti-cancer agents. In fact, the company has collaborated with Roche Holding AG to evaluate tazemetostat in combination with Tecentriq.
In Jan 2017, Epizyme completed enrolment in all wild type EZH2 cohorts of phase II study of tazemetostat for the treatment of patients with relapsed or refractory follicular lymphoma (FL) and diffuse large B-cell lymphoma (DLBCL). Interim data from this study is expected in June. Later this week, the company is anticipated to provide interim data from another phase II study for the treatment of molecularly defined solid tumors indication.
In Mar 2017, the company initiated a separate study to evaluate tazemetostat in combination with prednisolone in relapsed or refractory patients with DLBCL.
Subsequent to the quarter, in April, tazemetostat was granted fast track designation by the FDA for the treatment of patients with relapsed or refractory FL, including all wild type EZH2 or EZH2 activating mutations. Per the licensing agreement, Epizyme received a $10 million payment from partner GlaxoSmithKline plc for the initiation of GLP toxicology studies for a first-in-class methyltransferase inhibitor by the latter.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Epizyme, Inc. Price and Consensus
Epizyme, Inc. Price and Consensus | Epizyme, Inc. Quote
VGM Scores
At this time, the stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with an 'A'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum investors based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.