A month has gone by since the last earnings report for ChemoCentryx (
CCXI Quick Quote CCXI - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ChemoCentryx due for a pullback? 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.
ChemoCentryx Reports Wider-Than-Expected Q3 Loss
ChemoCentryx reported third-quarter 2020 loss of 35 cents per share, wider than the Zacks Consensus Estimate of a loss of 28 cents. The company had incurred a
loss of 22 cents per share in the year-ago period.
It recorded revenues of $5.1 million, which missed the Zacks Consensus Estimate of $13 million and declined from $10.5 million in the year-ago quarter.
Quarter in Detail
Collaboration and license revenues from related partieswere$5 million in the third quarter compared with $10.5 million in the year-ago quarter.
The company recorded Grant revenues of $.05 million during the quarter. There were no such revenues in the year-ago period.
Research & development (R&D) expenses were $18.6 million, 2.8% higher than the year-ago quarter, primarily due to professional fees associated with the preparation of the new drug application (NDA) submission for avacopan for the treatment of ANCA vasculitis. Higher research and drug discovery expenses, including those tied to the advancement of CCX559, which is the company’s orally administered checkpoint inhibitor, also resulted in increased R&D expenses.
General and administrative (G&A) expenses grew 70.5% to $10.4 million due to higher employee-related expenses, including those associated with the commercialization planning efforts, and higher professional fees.
The company had $485.8 million in cash, cash equivalents and investments as of Sep 30, 2020,compared with $202.2 million as of Dec31, 2019. The company expectsto end 2020 with cash and investments in excess of $460 million.
In September 2020, the FDA accepted for review the company’s NDA for avacopan in the treatment of ANCA-associated vasculitis and set Jul 7, 2021, as the target action date. The NDA included data from the global, phase III ADVOCATE trial.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 12.97% due to these changes.
At this time, ChemoCentryx has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ChemoCentryx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.