Back to top

Image: Bigstock

TESARO, Inc.

Read MoreHide Full Article

TESARO missed estimates for both earnings and revenues in the first quarter. However, Zejula has performed well since its approval in early 2017, gaining majority of U.S. ovarian cancer market share in the PARP inhibitor segment. The drug also has bright prospects, given the tremendous demand for PARP inhibitors. Moreover, collaborations with several large pharma companies for the development of Zejula generates a cash flow stream for TESARO and enables sharing of R&D costs. TESARO’s efforts for label expansion of Zejula are also encouraging. However, TESARO is heavily dependent on Zejula for growth, which concerns us. Meanwhile, competition in the PARP inhibitor segment is rising with two other approved drugs and several companies developing their candidates. TESARO’s shares have underperformed the industry so far this year.

Published in