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Epizyme's (EPZM) Q2 Earnings and Revenues Miss Estimates

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Epizyme Inc. (EPZM - Free Report) incurred a loss of 58 cents per share in second-quarter 2020, which was wider than the Zacks Consensus Estimate of a loss of 56 cents and the year-ago loss of 53 cents.

In June 2020, Tazverik was granted accelerated approval for relapsed or refractory follicular lymphoma (FL) and became commercially available to eligible patients.

Total revenues for the second quarter of 2020 were $2.5 million, which missed the Zacks Consensus Estimate of $4 million and the year-ago revenues of $5.9 million.

Shares of Epizyme have plunged 48.1% in the year so far against the industry’s 9.7% growth.

 

Quarter in Detail

Product revenues came in at $2.2 million from net sales of Tazverik in the United States. Collaboration revenues in second-quarter 2020, earned as part of the company’s alliance with Boehringer Ingelheim, were $0.2 million.

Tazverik became commercially available to patients on Feb 1, 2020, following its accelerated approval in January, for the treatment of metastatic or locally advanced Epithelioid Sarcoma (ES). Amidthe COVID-19 situation, the field-based teams are executing well and leveraging virtual and other non-personal methods to continue to engage with customers. 

Research and development expenses decreased to $23.4 million from $29 million in the year-ago quarter.

SG&A expenses increased to $27.1 million from $12.7 million due to the expansion of the company’s infrastructure to support the launch of Tazverikin FL.

Epizyme had $322.1 million of cash, cash equivalents and marketable securities as of June 30 compared with $376.5 million as of Mar 31. The company expects its cash runway to extend to at least 2022.

Pipeline Update

After the FDA’s approval of Tazverik in FL, the National Comprehensive Cancer Network updated its Clinical Practice Guidelines in Oncology (NCCN Guidelines) for FL to include Tazverik as a recommended category 2A treatment for patients with relapsed or refractory FL.

Epizyme’s expansion program to further investigate Tazverik’s therapeutic potential in earlier lines of therapy for FL, including several combination regimens with anti-cancer therapies, as well as in other cancer indications and combinations, is advancing as planned and remains on track.

While approval of Tazverik is a great boost for Epizyme, competition is stiff from bigwigs like Novartis (NVS - Free Report) , Pfizer (PFE - Free Report) and Merck (MRK - Free Report) . Hence, gaining market share in its targeted space will be a daunting task for Epizyme.

Currently, Epizyme is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Epizyme, Inc. Price, Consensus and EPS Surprise

 

Epizyme, Inc. Price, Consensus and EPS Surprise

Epizyme, Inc. price-consensus-eps-surprise-chart | Epizyme, Inc. Quote

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