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Agios' (AGIO) Q1 Earnings Miss, Pipeline Makes Progress

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Agios Pharmaceuticals, Inc. (AGIO - Free Report) reported a loss of $1.31 per share from continued operations during the first quarter, wider than the year-ago loss and the Zacks Consensus Estimates of a loss of $1.23 per share.

However, the company reported total earnings of $26.95 per share for the first-quarter of 2021 against a loss of 59 cents per share. The significant jump in earnings was due to recognition of one-time payment of $1.8 billion in upfront cash from the sale of its oncology portfolio, including its marketed drug, Tibsovo.

Please note that the company closed the sale of its oncology portfolio to France-based pharmaceutical company, Servier, last month. The company recorded the upfront cash from oncology portfolio sale and $37 million from Tibsovo sales in the first quarter as net income from discontinued operations.

Total revenues of $41.4 million in the reported quarter was recorded as net income from discontinued operations. The company had recorded $87.1 million in total revenues in the year-ago period.

Shares of Agios have rallied 28.7% so far this year compared with the industry’s increase of 9.1%.

Quarter in Detail

As part of oncology portfolio sales, Agios also sold its co-commercialization rights for Bristol Myers Squibb’s (BMY - Free Report) Idhifa (enasidenib). Any royalty revenues on Idhifa is presumably included in net income from discontinued operations.

Research & development expenses gained 4.2% year over year to $57.7 million due to increased cost related to planned initiation of late-stage studies of mitapivat in thalassemia and sickle cell disease.

Selling general and administrative expenses increased 5.9% year over year to $33.6 million.

Agios ended the first quarter with cash, cash equivalents and marketable securities of $2.4 billion, compared with $670.5 million at the end of December 2020.

Pipeline Updates

Agios is developing its lead pipeline candidate, mitapivat, for treating patients with pyruvate kinase (“PK”) deficiency. The company has successfully completed two phase III studies namely, ACTIVATE and ACTIVATE-T, for treating PK deficiency in adults who are not regularly transfused and those who are regularly transfused, respectively.

Agios plans to submit a new drug application for mitapivat in the United States by the end of this quarter. The company also plans to file a marketing authorization application in the EU by the middle of this year.

Agios is also developing mitapivat for treating sickle cell disease (“SCD”), a blood disorder, and thalassemia. A phase II/III study on mitapivat for SCD is expected to begin by year-end. The company also plans to initiate two phase III studies on mitapivat in thalassemia (regularly transfused as well as not regularly transfused) in the second half of 2021.

Agios is also evaluating AG-946, its next-generation pyruvate kinase-R activator in a phase I study for the treatment of hemolytic anemia.

Agios Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Agios Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Agios Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Agios Pharmaceuticals, Inc. Quote

Zacks Rank & Stocks to Consider

Agios currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the healthcare sector include Avid Bioservices, Inc. (CDMO - Free Report) and NabrivaTherapeutics AG (NBRV - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Avid’s earnings per share estimates have risen 80% and 53.8% for 2021 and 2022, respectively, over the past 30 days. The stock has risen 88.5% so far this year.

Nabriva’s loss per share estimates have narrowed 3.9% and 8.9% for 2021 and 2022, respectively, over the past 30 days.

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