A month has gone by since the last earnings report for Epizyme . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Epizyme due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Epizyme Beats on Q1 Earnings, Misses on Revenues
Epizyme incurred a loss of 51 cents per share in first-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 74 cents but wider than the year-ago loss of 39 cents.
Total revenues of $1.4 million missed the Zacks Consensus Estimate of $3 million.
Quarter in Detail
Product revenues came in at $1.3 million from net sales of Tazverik in the United States in the first two months of commercialization. Collaboration revenues of $0.1 million in the first quarter were earned as part of the company’s alliance with Boehringer Ingelheim.
Research and development expenses declined to $25.2 million from $26.9 million in the year-ago quarter.
SG&A expenses more than doubled to $26.9 million due to commercialization expenses for Tazverik.
Epizyme had $376.5 million of cash, cash equivalents and marketable securities as of Mar 31, 2020, compared with $381.1 million as of Dec 31, 2019. The company expects its cash runway to extend to at least 2022.
Pipeline Update
The FDA accepted the Epizyme’s sNDA for the accelerated approval of Tazverik for a proposed indication of patients suffering relapsed or refractory follicular lymphoma who received at least two prior lines of systemic therapy. The FDA granted a Priority Review to the sNDA and set an action date of Jun 18, 2020. The company already made commercialization plans for the same.
Expected Milestones in 2020
Epizyme expects to complete the safety portion of the ongoing, global phase Ib/III confirmatory study assessing Tazverik in combination with doxorubicin compared with doxorubicin plus placebo as a front-line treatment of ES and advance into the efficacy portion of the study.
The company also expects to complete the safety portion of the ongoing, global phase Ib/III confirmatory study assessing Tazverik in combination with Revlimid plus Rituximab compared with only Revlimid and Rituximab plus placebo in the second-line treatment setting for FL and progress into the efficacy portion of the study.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 34.63% due to these changes.
VGM Scores
At this time, Epizyme has a poor Growth Score of F, however its Momentum Score 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 lowest 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Epizyme has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Epizyme (EPZM) Down 4.4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Epizyme . Shares have lost about 4.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Epizyme due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Epizyme Beats on Q1 Earnings, Misses on Revenues
Epizyme incurred a loss of 51 cents per share in first-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 74 cents but wider than the year-ago loss of 39 cents.
Total revenues of $1.4 million missed the Zacks Consensus Estimate of $3 million.
Quarter in Detail
Product revenues came in at $1.3 million from net sales of Tazverik in the United States in the first two months of commercialization. Collaboration revenues of $0.1 million in the first quarter were earned as part of the company’s alliance with Boehringer Ingelheim.
Research and development expenses declined to $25.2 million from $26.9 million in the year-ago quarter.
SG&A expenses more than doubled to $26.9 million due to commercialization expenses for Tazverik.
Epizyme had $376.5 million of cash, cash equivalents and marketable securities as of Mar 31, 2020, compared with $381.1 million as of Dec 31, 2019. The company expects its cash runway to extend to at least 2022.
Pipeline Update
The FDA accepted the Epizyme’s sNDA for the accelerated approval of Tazverik for a proposed indication of patients suffering relapsed or refractory follicular lymphoma who received at least two prior lines of systemic therapy. The FDA granted a Priority Review to the sNDA and set an action date of Jun 18, 2020. The company already made commercialization plans for the same.
Expected Milestones in 2020
Epizyme expects to complete the safety portion of the ongoing, global phase Ib/III confirmatory study assessing Tazverik in combination with doxorubicin compared with doxorubicin plus placebo as a front-line treatment of ES and advance into the efficacy portion of the study.
The company also expects to complete the safety portion of the ongoing, global phase Ib/III confirmatory study assessing Tazverik in combination with Revlimid plus Rituximab compared with only Revlimid and Rituximab plus placebo in the second-line treatment setting for FL and progress into the efficacy portion of the study.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 34.63% due to these changes.
VGM Scores
At this time, Epizyme has a poor Growth Score of F, however its Momentum Score 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 lowest 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.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Epizyme has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.