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Why Is Epizyme (EPZM) Up 0.6% Since Last Earnings Report?

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It has been about a month since the last earnings report for Epizyme (EPZM - Free Report) . Shares have added about 0.6% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Epizyme due for a pullback? 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's Q2 Earnings and Revenues Miss Estimates

Epizyme 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.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month. The consensus estimate has shifted 7.32% due to these changes.

VGM Scores

Currently, Epizyme has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, 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.

Outlook

Epizyme has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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