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ImmunoGen (IMGN) Q2 Loss Narrower Than Expected, Revenues Lag

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ImmunoGen, Inc. (IMGN - Free Report) incurred a loss of 15 cents per share for second-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of 18 cents but slightly wider than the year-ago loss of 14 cents.

Revenues came in at $16.9 million, which missed the Zacks Consensus Estimate of $19 million. Revenues, however, were up 12.7% year over year.

Quarter in Detail

Second-quarter revenues included $16.69 million in non-cash royalty revenues, up 18.6% year over year. The company records a key portion of these revenues from royalties on global sales of its partner Roche’s (RHHBY - Free Report) Kadcyla.

ImmunoGen recorded license and milestone fees of $0.25 million for the second quarter compared with $0.9 million in the year-ago period.

For the quarter, research and development expenses increased 51.1% from the year-ago level to $34.6 million. The significant increase was due to higher clinical activity related to its lead pipeline candidate, mirvetuximab soravtansines, and IMGC936.

General and administrative expenses slightly decreased 1.02% from the prior-year quarter to $9.7 million for second-quarter 2021.

ImmunoGen’s cash and cash equivalents decreased to $239.5 million at June 2021-end compared with $283.1 million at the end of March 2021.

Shares of the company have plunged 13.1% so far this year in comparison with the industry’s decrease of 11.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

2021 Guidance Maintained

ImmunoGen reiterated its previous guidance for revenues, operating expenses and cash resources for 2021. The company expects revenues for the full year between $65 million and $75 million. The Zacks Consensus Estimate for 2021 revenues stands at $69.68 million.

ImmunoGen expects operating expense in the range of $200-$210 million. It expects to end 2021 with cash and cash equivalents in the range of $140-$150 million.

The company expects cash resources to be enough to fund its operations through second-half 2022.

Pipeline Updates

ImmunoGen is evaluating its lead pipeline candidate, mirvetuximab soravtansine, in a pivotal study — SORAYA — in platinum-resistant ovarian cancer patients. The company has completed enrolment of patients in the study and anticipates top-line data from the same in fourth-quarter 2021. It also expects the data from this study to form the basis of the candidate’s regulatory filing under accelerated pathway for ovarian cancer.

The company is enrolling patients in the confirmatory phase III MIRASOL study, which compared mirvetuximab soravtansine head-to-head with single agent chemotherapy in platinum-resistant ovarian cancer patients with high folate receptor alpha expression. It anticipates top-line data in the third quarter of 2022. Data from the MIRASOL study will support its approval of the candidate in the indication.

The company is also evaluating combination regimens of mirvetuximab soravtansine with Merck’s (MRK - Free Report) Keytruda, Roche’s Avastin and carboplatin as second or third-line treatment for ovarian cancer in a phase Ib/II FORWARD II study.

Meanwhile, an investigator-sponsored phase II study is expected to be initiated in the latter half of 2021 to evaluate mirvetuximab plus carboplatin in the neoadjuvant setting for treating ovarian cancer. ImmunoGen also plans to initiate a single-arm study — PICCOLO — to evaluate mirvetuximab monotherapy for treating recurrent platinum-sensitive ovarian cancer in the second half of 2021.

The company has another promising candidate, IMGN632, in its pipeline. It is being developed in clinical studies as monotherapy or in combination with Bristol-Myers’ (BMY - Free Report) Vidaza or AbbVie/Roche’s Venclexta for treating acute myeloid leukemia. It is also developing IMGN632 monotherapy in a phase I/II in patients with blastic plasmacytoid dendritic cell neoplasm and acute lymphocytic leukemia.

Zacks Rank

Currently, Immunogen has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.