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Acceleron (XLRN) Q2 Loss Wider Than Expected, Revenues Miss
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Acceleron Pharma Inc. reported a loss of $1.05 in the second quarter of 2021, much wider than the Zacks Consensus Estimate of a loss of 92 cents and the year-ago loss of 34 cents. The wider loss was primarily due to lower collaboration revenues in the quarter, and higher research & development (R&D) expenses and selling, general & administrative (SG&A) costs.
The company reported collaboration revenues of $27.9 million in the reported quarter. The top line declined from $39.7 million in the year-ago quarter and missed the Zacks Consensus Estimate by 10.25%.
Total revenues in the quarter include $25.6 million in royalty revenues from approximately $128 million of net sales of Reblozyl (luspatercept-aamt) from the company's partnership with Bristol Myers (BMY - Free Report) .
We remind investors that, in November 2019, the FDA approved Reblozyl for the treatment of anemia in adult patients with beta-thalassemia, who require regular red blood cell or RBC transfusions. The drug was developed in collaboration with Bristol Myers.
The FDA also approved the label expansion of Reblozyl for the treatment of anemia failing an erythropoiesis-stimulating agent and requiring two or more red blood cell (RBC) units over eight weeks in adult patients with very low- to intermediate-risk MDS with ring sideroblasts (MDS-RS) or with myelodysplastic/myeloproliferative neoplasm with ring sideroblasts and thrombocytosis (MDS/MPN-RS-T).
R&D costs increased to $49.3 million from $34.1 million in the year-ago quarter. SG&A increased to $27.7 million from $16.4 million.
Cash, cash equivalents and investments as of Jun 30, 2020, were $712.5 million. Based on its current operating plans and projections, Acceleron believes that current cash, cash equivalents and investments along with expected royalty revenues from Reblozyl sales will be sufficient to fund projected operating requirements for the foreseeable future.
Acceleron’s stock has lost 3.3% in the year so far against the industry’s growth of 4.2%.
Image Source: Zacks Investment Research
Other Updates
Bristol-Myers is currently conducting a phase II study, BEYOND, with luspatercept-aamt in non-transfusion-dependent beta-thalassemia patients.
Enrollment is ongoing in the phase III INDEPENDENCE study in patients with anemia-associated with myelofibrosis.
Acceleron is evaluating sotatercept for the treatment of patients with pulmonary arterial hypertension (PAH) in partnership with Bristol Myers. In December, Acceleron initiated its registrational STELLAR phase III study in patients with PAH, and enrollment is underway.
Acceleron expects to initiate the phase II study, CADENCE, in patients with pulmonary hypertension with left heart disease this year.
Acceleron expects to start a phase Ib/phase II study to evaluate the activity of ACE-1334 in patients with Systemic Sclerosis-associated Interstitial Lung Disease (SSc-ILD) by year-end.
While the label expansion of Reblozyl is encouraging, competition can be stiff from Novartis’ (NVS - Free Report) Exjade and Jadenu. Moreover, Incyte’s (INCY - Free Report) Jakafi is already approved for MF.
Acceleron currently carries a Zacks Rank #5 (Strong Sell).
Image: Bigstock
Acceleron (XLRN) Q2 Loss Wider Than Expected, Revenues Miss
Acceleron Pharma Inc. reported a loss of $1.05 in the second quarter of 2021, much wider than the Zacks Consensus Estimate of a loss of 92 cents and the year-ago loss of 34 cents. The wider loss was primarily due to lower collaboration revenues in the quarter, and higher research & development (R&D) expenses and selling, general & administrative (SG&A) costs.
The company reported collaboration revenues of $27.9 million in the reported quarter. The top line declined from $39.7 million in the year-ago quarter and missed the Zacks Consensus Estimate by 10.25%.
Total revenues in the quarter include $25.6 million in royalty revenues from approximately $128 million of net sales of Reblozyl (luspatercept-aamt) from the company's partnership with Bristol Myers (BMY - Free Report) .
We remind investors that, in November 2019, the FDA approved Reblozyl for the treatment of anemia in adult patients with beta-thalassemia, who require regular red blood cell or RBC transfusions. The drug was developed in collaboration with Bristol Myers.
The FDA also approved the label expansion of Reblozyl for the treatment of anemia failing an erythropoiesis-stimulating agent and requiring two or more red blood cell (RBC) units over eight weeks in adult patients with very low- to intermediate-risk MDS with ring sideroblasts (MDS-RS) or with myelodysplastic/myeloproliferative neoplasm with ring sideroblasts and thrombocytosis (MDS/MPN-RS-T).
R&D costs increased to $49.3 million from $34.1 million in the year-ago quarter. SG&A increased to $27.7 million from $16.4 million.
Cash, cash equivalents and investments as of Jun 30, 2020, were $712.5 million. Based on its current operating plans and projections, Acceleron believes that current cash, cash equivalents and investments along with expected royalty revenues from Reblozyl sales will be sufficient to fund projected operating requirements for the foreseeable future.
Acceleron’s stock has lost 3.3% in the year so far against the industry’s growth of 4.2%.
Image Source: Zacks Investment Research
Other Updates
Bristol-Myers is currently conducting a phase II study, BEYOND, with luspatercept-aamt in non-transfusion-dependent beta-thalassemia patients.
Enrollment is ongoing in the phase III INDEPENDENCE study in patients with anemia-associated with myelofibrosis.
Acceleron is evaluating sotatercept for the treatment of patients with pulmonary arterial hypertension (PAH) in partnership with Bristol Myers. In December, Acceleron initiated its registrational STELLAR phase III study in patients with PAH, and enrollment is underway.
Acceleron expects to initiate the phase II study, CADENCE, in patients with pulmonary hypertension with left heart disease this year.
Acceleron expects to start a phase Ib/phase II study to evaluate the activity of ACE-1334 in patients with Systemic Sclerosis-associated Interstitial Lung Disease (SSc-ILD) by year-end.
While the label expansion of Reblozyl is encouraging, competition can be stiff from Novartis’ (NVS - Free Report) Exjade and Jadenu. Moreover, Incyte’s (INCY - Free Report) Jakafi is already approved for MF.
Acceleron currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.