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Deciphera (DCPH) Reports Narrower-Than-Expected Loss in Q3
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Shares of Deciphera Pharmaceuticals Inc. (DCPH - Free Report) were down 7% on Nov 6, following its third-quarter 2020 results. The company reported a loss of $1.13 per share in the third quarter of 2020,narrower than the Zacks Consensus Estimate of a loss of $1.32 and the year-ago quarter’s loss of $1.28. The loss incurred in the third quarter 2020 was attributable to increased research and development (R&D) and selling, general and administrative (SG&A) expenses, partially offset by the recognition of revenues. However, shares of the company have decreased 3% year to date compared with the industry’s decline of 0.4%.
Total net revenues were $15.5 million in the quarter, which surpassed the Zacks Consensus Estimate of $7 million. In the third quarter of 2019, the company did not generate revenues.
In the third quarter of 2020, total revenues included $15.2 million of net product revenue of QINLOCK and $0.3 million of collaboration revenues.
Quarter in Details
R&D expenses were $49.2 million, up 21.8% year over year. The increase was mainly due to personnel costs, clinical trial costs related to the phase III INTRIGUE study in second-line gastrointestinal stromal tumor (GIST), DCC-3014 and rebastinib, and preclinical costs.
SG&A expenses were $30.1 million, up 67.2% from the year-ago quarter. The increase was due to personnel costs as well as external spending associated with commercial preparedness and launch of QINLOCK, increased expenses incurred in connection with Deciphera’s new headquarters that commenced operations in October 2019, and technology-related costs to support the growth of the business.
Pipeline Update
The company submitted and received validation fora marketing authorization application (MAA) of QINLOCK in fourth-line GIST by the European Medicines Agency (EMA).
Zacks Rank and Stocks to Consider
Deciphera currently carries a Zacks Rank #3 (Hold).
Emergent’s earnings estimates have increased from $6.17 to $8.42 for 2021 over the past 90 days. Shares of the company have increased 71.1% year to date.
Alimera’s loss per share estimates have narrowed from $1.31 to 96 cents for 2020 in the past 60 days. Shares of the company have decreased 47.3% year to date.
Bellus’loss per share estimates have narrowed from 71 cents to 62 cents for 2020 and from 88 cents to 79 cents for 2021 in the past 90 days. Shares of the company have decreased 68.8% year to date.
Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
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Deciphera (DCPH) Reports Narrower-Than-Expected Loss in Q3
Shares of Deciphera Pharmaceuticals Inc. (DCPH - Free Report) were down 7% on Nov 6, following its third-quarter 2020 results. The company reported a loss of $1.13 per share in the third quarter of 2020,narrower than the Zacks Consensus Estimate of a loss of $1.32 and the year-ago quarter’s loss of $1.28. The loss incurred in the third quarter 2020 was attributable to increased research and development (R&D) and selling, general and administrative (SG&A) expenses, partially offset by the recognition of revenues. However, shares of the company have decreased 3% year to date compared with the industry’s decline of 0.4%.
Total net revenues were $15.5 million in the quarter, which surpassed the Zacks Consensus Estimate of $7 million. In the third quarter of 2019, the company did not generate revenues.
In the third quarter of 2020, total revenues included $15.2 million of net product revenue of QINLOCK and $0.3 million of collaboration revenues.
Quarter in Details
R&D expenses were $49.2 million, up 21.8% year over year. The increase was mainly due to personnel costs, clinical trial costs related to the phase III INTRIGUE study in second-line gastrointestinal stromal tumor (GIST), DCC-3014 and rebastinib, and preclinical costs.
SG&A expenses were $30.1 million, up 67.2% from the year-ago quarter. The increase was due to personnel costs as well as external spending associated with commercial preparedness and launch of QINLOCK, increased expenses incurred in connection with Deciphera’s new headquarters that commenced operations in October 2019, and technology-related costs to support the growth of the business.
Pipeline Update
The company submitted and received validation fora marketing authorization application (MAA) of QINLOCK in fourth-line GIST by the European Medicines Agency (EMA).
Zacks Rank and Stocks to Consider
Deciphera currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Emergent BioSolutions Inc. (EBS - Free Report) , Alimera Sciences Inc. (ALIM - Free Report) and Bellus Health, Inc. . While Emergent sports a Zacks Rank #1 (Strong Buy), Alimera and Bellus Healthcarry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Emergent’s earnings estimates have increased from $6.17 to $8.42 for 2021 over the past 90 days. Shares of the company have increased 71.1% year to date.
Alimera’s loss per share estimates have narrowed from $1.31 to 96 cents for 2020 in the past 60 days. Shares of the company have decreased 47.3% year to date.
Bellus’loss per share estimates have narrowed from 71 cents to 62 cents for 2020 and from 88 cents to 79 cents for 2021 in the past 90 days. Shares of the company have decreased 68.8% year to date.
Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Deciphera Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Deciphera Pharmaceuticals, Inc. Quote
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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