Epizyme Inc. ( EPZM Quick Quote EPZM - Free Report) fell about 23.7% after it announced third-quarter 2020 results. The company incurred a loss of 55 cents per share in third-quarter 2020, which was narrower than the Zacks Consensus Estimate of a loss of 61 cents but wider than the year-ago loss of 40 cents. However, Shares of Epizyme have plunged 58% in the year so far compared with the industry’s decline of 1.4%.
Total revenues for the third quarter of 2020 were $3.6 million, which missed the Zacks Consensus Estimate of $6 million and down from the year-ago revenues of $5.7 million.
Quarter in Detail
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).
Tazverik generated net product revenues in both ESand FL of $3.4 million in the third quarter, with growth largely driven by the FDA approval of the drug in relapsed or refractoryFL on Jun 18, 2020. However, during the third quarter, the COVID-19 pandemic continued to negatively impact FL patient visits to physicians, new patient starts across all lines of treatmentand the ability of Epizyme’s field-based teams to fully access FL prescribers.
Collaboration revenues in third-quarter 2020, earned as part of the company’s alliance with Boehringer Ingelheim, were $0.1 million.
Research and development expenses decreased to $23.5 million from $25.3 million in the year-ago quarter.
SG&A expenses increased to $26.2 million from $14.5 million.
Epizyme had $279.9 million of cash, cash equivalents and marketable securities as of September 30 compared with $322.1 million as of Jun 20. Epizyme and Pharmakon Advisors, an affiliate of Royalty Pharma, expanded their original loan agreement established in November 2019, enabling Epizyme to draw down an additional $150 million from the loan facility, subject to customary closing conditions. The company expects its existing cash, cash equivalents and marketable securities combined with the proceeds from the loan facility tofund its operations untilat least 2023.
Epizyme completed enrollment in the safety run-in portion of its combination study of Tazverikin metastatic castration-resistant prostate cancer (mCRPC) and the initiation of the efficacy expansion stage is planned for early 2021. The company expects to report safety and efficacy data from the safety run-in portion of the study at a medical meeting in 2021.
While approval of Tazverik is a great boost for Epizyme, competition is stiff from bigwigs like
Novartis NVS, Pfizer PFE and Merck ( MRK Quick Quote MRK - Free Report) . Hence, gaining market share in its targeted space will be a daunting task for the company.
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
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