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Will Agenus (AGEN) Disappoint Investors This Earnings Season?
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Agenus Inc. (AGEN - Free Report) is expected to report second-quarter 2018 results on Aug 2.
In the last reported quarter, the company reported a negative earnings surprise of 50%. In the last four quarters the company delivered an average negative earnings surprise of 15.97%.
Notably, Agenus’ shares have underperformed the industry so far this year. The stock has declined 45.7%, as against the industry’s fall of 5.3%.
Let’s see how things are shaping up for the company this quarter.
Factors at Play
Agenus has no approved product in its portfolio. Agenus’ collaboration agreements with several companies, not only help it to procure funds in the form of upfront and milestone payments and future royalties but also validate its proprietary product platform. Agenus has collaborated with Merck (MRK - Free Report) and Incyte to discover and develop multiple checkpoint antibodies.
Under the Incyte collaboration, Agenus is evaluating the former;s anti-GITR checkpoint antibody — INCAGN1876 — in a phase I/II study, its anti-OX40 agonist antibody — INCAGN1949 — in a phase I/II study and its anti-CTLA-4 antibody — AGEN1884 — in a phase II study. All three candidates are being evaluated for the treatment of solid tumors. In January 2018, the company launched combination trials of CTLA-4 antibody, AGEN1884 and PD-1 targeting antibody AGEN2034 including trials in second line cervical cancer.
The company has shifted its strategy for first approval from first line non-small cell lung cancer to second line cervical cancer because of increasing hurdles and correspondingly longer timelines. The reasons for the strategy shift includes increasingly crowded lung cancer opportunities and Merck’s impressive data with Keytruda in combination with chemotherapy in first-line non-small cell lung cancer, which has set the bar higher for any future approvals.
The company remains on track to file six investigational new drugs (INDs) in 2018 and an additional two INDs in the first half of 2019. Amongst these, is the company’s next gen CTLA-4, designed to deplete cancer-prone Tregs and improve T-cell priming.
In October 2017, Agenus established a separate business entity to advance its cell therapy program which is designed to be self-funded. The cell therapy company, AgenTus, will focus on the discovery, development, and commercialization of breakthrough “living drugs” to advance cures for cancer patients. The company took this decision to form smaller teams that can entirely focus on getting the products approved. The company expects the combined value of the separate companies to exceed the perceived value under one roof.
In the second quarter the company will focus on its pipeline candidates and provide updates on them.
What Our Model Indicates
Our proven model does not show an earnings beat for Agenus 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. However, that is not the case here as you will see below.
Earnings ESP: Agenus has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 38 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Agenus has a Zacks Rank #4 (Sell), which decreases the predictive power of ESP. Note that we caution against stocks with a Zacks Rank #4 or 5 ( Sell rated) going into an earnings announcement.
Here are some health care stocks 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) has an Earnings ESP of +42.86% and currently carries a Zacks Rank #2. The company is scheduled to release second-quarter report on Aug 2.
Endo International Plc. has an Earnings ESP of +1.37% and currently carries a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 8.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Will Agenus (AGEN) Disappoint Investors This Earnings Season?
Agenus Inc. (AGEN - Free Report) is expected to report second-quarter 2018 results on Aug 2.
In the last reported quarter, the company reported a negative earnings surprise of 50%. In the last four quarters the company delivered an average negative earnings surprise of 15.97%.
Notably, Agenus’ shares have underperformed the industry so far this year. The stock has declined 45.7%, as against the industry’s fall of 5.3%.
Let’s see how things are shaping up for the company this quarter.
Factors at Play
Agenus has no approved product in its portfolio. Agenus’ collaboration agreements with several companies, not only help it to procure funds in the form of upfront and milestone payments and future royalties but also validate its proprietary product platform. Agenus has collaborated with Merck (MRK - Free Report) and Incyte to discover and develop multiple checkpoint antibodies.
Under the Incyte collaboration, Agenus is evaluating the former;s anti-GITR checkpoint antibody — INCAGN1876 — in a phase I/II study, its anti-OX40 agonist antibody — INCAGN1949 — in a phase I/II study and its anti-CTLA-4 antibody — AGEN1884 — in a phase II study. All three candidates are being evaluated for the treatment of solid tumors. In January 2018, the company launched combination trials of CTLA-4 antibody, AGEN1884 and PD-1 targeting antibody AGEN2034 including trials in second line cervical cancer.
The company has shifted its strategy for first approval from first line non-small cell lung cancer to second line cervical cancer because of increasing hurdles and correspondingly longer timelines. The reasons for the strategy shift includes increasingly crowded lung cancer opportunities and Merck’s impressive data with Keytruda in combination with chemotherapy in first-line non-small cell lung cancer, which has set the bar higher for any future approvals.
The company remains on track to file six investigational new drugs (INDs) in 2018 and an additional two INDs in the first half of 2019. Amongst these, is the company’s next gen CTLA-4, designed to deplete cancer-prone Tregs and improve T-cell priming.
In October 2017, Agenus established a separate business entity to advance its cell therapy program which is designed to be self-funded. The cell therapy company, AgenTus, will focus on the discovery, development, and commercialization of breakthrough “living drugs” to advance cures for cancer patients. The company took this decision to form smaller teams that can entirely focus on getting the products approved. The company expects the combined value of the separate companies to exceed the perceived value under one roof.
In the second quarter the company will focus on its pipeline candidates and provide updates on them.
What Our Model Indicates
Our proven model does not show an earnings beat for Agenus 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. However, that is not the case here as you will see below.
Earnings ESP: Agenus has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 38 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Agenus has a Zacks Rank #4 (Sell), which decreases the predictive power of ESP. Note that we caution against stocks with a Zacks Rank #4 or 5 ( Sell rated) going into an earnings announcement.
Agenus Inc. Price and EPS Surprise
Agenus Inc. Price and EPS Surprise | Agenus Inc. Quote
Stocks That Warrant a Look
Here are some health care stocks 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) has an Earnings ESP of +42.86% and currently carries a Zacks Rank #2. The company is scheduled to release second-quarter report on Aug 2.
Endo International Plc. has an Earnings ESP of +1.37% and currently carries a Zacks Rank #3. The company is scheduled to release second-quarter results on Aug 8.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>