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Aduro (ADRO) Q1 Loss Narrower Than Expected, Revenues Beat
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Aduro Biotech, Inc. incurred first-quarter 2018 loss of 28 cents per share, narrower than both the Zacks Consensus Estimate of a loss of 30 cents and the year-ago loss of 32 cents.
Quarterly revenues soared substantially 73.7% year over year to $6.6 million. This upside can mainly be attributed to a receipt of $3 million milestone payment from Merck (MRK - Free Report) under Aduro’s worldwide licensing agreement with the company for initiation of a phase I study, evaluating its own anti-CD27 antibody in combination with Merck’s Keytruda (pembrolizumab)for treatment of adults with advanced solid tumors. The top line also surpassed the Zacks Consensus Estimate of $4 million.
Shares of Aduro increased more than 3% on May 2 in after-hours trading following the earnings release. However, the stock has underperformed the industry in a year’s time, having declined 26.1% compared with the industry’s decrease of 14.3%.
Research and development expenses slightly dipped 2.4% in the reported quarter to $20.1 million, mainly owing to lower contract manufacturing expense of $3.1 million. This is primarily related to the company’s pipeline candidate, BION-1301, currently under development for treating adults with relapsed or refractory multiple myeloma. However, this was offset by an increase in costs related to manufacturing of B-select antibodies and the company’s personalized neoantigen-based immunotherapy.
General and administrative expenses were $9 million, up 8.4% year over year on higher stock-based compensation expense and legal fees.
Pipeline Update
Aduro has a broad pipeline of novel immunotherapies, developed for treating a variety of cancers.
The company evaluates its STING pathway activator, ADU-S100, in combination with Novartis AG’s (NVS - Free Report) PD-1 checkpoint inhibitor, PDR001, in a phase Ib trial for treating solid tumors and lymphomas. Additionally, the candidate is being evaluated in a phase I trial as a monotherapy in patients with cutaneous accessible metastatic solid tumors or lymphomas. Top-line data from the program is expected soon.
Meanwhile, in December 2017, Aduro initiated a phase I/II dose escalation study, examining its pipeline candidate, BION-1301, for the treatment of adults with relapsed or refractory multiple myeloma.
Aduro Biotech, Inc. Price, Consensus and EPS Surprise
Ligand’s earnings per share estimates have moved north from $4.20 to $4.43 for 2018 in the last 30 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 36.9% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Aduro (ADRO) Q1 Loss Narrower Than Expected, Revenues Beat
Aduro Biotech, Inc. incurred first-quarter 2018 loss of 28 cents per share, narrower than both the Zacks Consensus Estimate of a loss of 30 cents and the year-ago loss of 32 cents.
Quarterly revenues soared substantially 73.7% year over year to $6.6 million. This upside can mainly be attributed to a receipt of $3 million milestone payment from Merck (MRK - Free Report) under Aduro’s worldwide licensing agreement with the company for initiation of a phase I study, evaluating its own anti-CD27 antibody in combination with Merck’s Keytruda (pembrolizumab)for treatment of adults with advanced solid tumors. The top line also surpassed the Zacks Consensus Estimate of $4 million.
Shares of Aduro increased more than 3% on May 2 in after-hours trading following the earnings release. However, the stock has underperformed the industry in a year’s time, having declined 26.1% compared with the industry’s decrease of 14.3%.
Research and development expenses slightly dipped 2.4% in the reported quarter to $20.1 million, mainly owing to lower contract manufacturing expense of $3.1 million. This is primarily related to the company’s pipeline candidate, BION-1301, currently under development for treating adults with relapsed or refractory multiple myeloma. However, this was offset by an increase in costs related to manufacturing of B-select antibodies and the company’s personalized neoantigen-based immunotherapy.
General and administrative expenses were $9 million, up 8.4% year over year on higher stock-based compensation expense and legal fees.
Pipeline Update
Aduro has a broad pipeline of novel immunotherapies, developed for treating a variety of cancers.
The company evaluates its STING pathway activator, ADU-S100, in combination with Novartis AG’s (NVS - Free Report) PD-1 checkpoint inhibitor, PDR001, in a phase Ib trial for treating solid tumors and lymphomas. Additionally, the candidate is being evaluated in a phase I trial as a monotherapy in patients with cutaneous accessible metastatic solid tumors or lymphomas. Top-line data from the program is expected soon.
Meanwhile, in December 2017, Aduro initiated a phase I/II dose escalation study, examining its pipeline candidate, BION-1301, for the treatment of adults with relapsed or refractory multiple myeloma.
Aduro Biotech, Inc. Price, Consensus and EPS Surprise
Aduro Biotech, Inc. Price, Consensus and EPS Surprise | Aduro Biotech, Inc. Quote
Zacks Rank & Key Picks
Aduro carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Ligand Pharmaceuticals Incorporated (LGND - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved north from $4.20 to $4.43 for 2018 in the last 30 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 36.9% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>