OncoGenex Pharmaceuticals, Inc. reported a loss of 47 cents per share, narrower than the year-ago loss of 57 cents as well as the Zacks Consensus Estimate of a loss of 49 cents.
Second-quarter revenues decreased 22.3% year over year to $4.9 million and were well below the Zacks Consensus Estimate of $12 million. Total revenue comprised revenues earned by OncoGenex for reimbursable clinical trial, manufacturing and preclinical costs under its collaboration with Teva (TEVA - Free Report) .
The Quarter in Detail
Research and development (R&D) expenses were $9.9 million, down 25.5% from the year-ago quarter. The decrease in R&D spend was primarily due to costs related to the purchase of combination drugs for the AFFINITY study during the year-ago quarter.
General and administrative (G&A) expenses increased 8.2% to $2.7 million from the year-ago quarter.
OncoGenex is focused on the development of its oncology pipeline. OncoGenex’s apatorsen is currently in a randomized, open-label phase II study (Cedar) for advanced squamous cell lung cancer.
Currently, apatorsen is in several phase II studies for four types of cancer − bladder, lung, pancreatic and prostate. Results from the Borealis-1 study (metastatic bladder cancer) should be out in the first quarter of 2015.
Additionally, OncoGenex intends to complete patient enrolment in the Spruce study (previously untreated advanced non-squamous non-small cell lung cancer (NSCLC)) and the Rainier study (previously untreated metastatic pancreatic cancer) in the first half and early second half of 2015, respectively.
Meanwhile, another oncology candidate, custirsen, is in two phase III studies (AFFINITY and ENSPIRIT), for second-line metastatic castrate-resistant prostate cancer (CRPC) and NSCLC, respectively. Custirsen has Fast Track status in the U.S. for second-line treatment of metastatic CRPC when combined with Jevtana (cabazitaxel) and prednisone and second-line treatment of advanced NSCLC when combined with Taxotere (docetaxel).
Patient enrolment in the AFFINITY study should be completed in the second half of 2014 with results expected in late 2015 or early 2016. OncoGenex intends to conduct the first interim futility analysis of the ENSPIRIT study before year-end.
OncoGenex carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Allergan Inc. (AGN - Free Report) and AstraZeneca plc (AZN - Free Report) . While Allergan carries a Zacks Rank #1 (Strong Buy), AstraZeneca holds a Zacks Rank #2 (Buy).