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Deciphera (DCPH) Q4 Loss Wider Than Expected, Revenues Beat
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Deciphera Pharmaceuticals, Inc. (DCPH - Free Report) reported fourth-quarter 2021 loss of $1.51 per share, wider than the Zacks Consensus Estimate of a loss of $1.49 and the year-ago quarter’s loss of $1.10.
Total net revenues were $24.2 million in the quarter, which surpassed the Zacks Consensus Estimate of $23 million. Revenues rose 24.1% year over year.
Shares of Deciphera were down 3.8% in after-hours trading on Tuesday following the earnings announcement. The stock has plunged 83.7% in the past year compared with the industry’s decline of 39.7%.
Image Source: Zacks Investment Research
In May 2020, the FDA approved Deciphera’s sole marketed drug, Qinlock (ripretinib), to treat adult patients with advanced gastrointestinal stromal tumors (“GIST”) who have received prior treatment with three or more kinase inhibitors, including Novartis’ (NVS - Free Report) Gleevec (imatinib).
Novartis has lost the patent protection for Gleevec, which faces increasing generic competition in major markets.
Full-Year Results
For 2021, Deciphera generated total revenues of $96.1 million compared with $42.1 million recorded in 2020.
For full-year 2021, the company reported a loss of $5.16 per share compared with net loss of $4.78 per share in 2020.
Quarter in Detail
Apart from Qinlock, there are no other marketable drugs in the company’s portfolio. Total revenues comprised net product revenues and collaboration revenues. Net product revenues were $23.7 million, including $21.5 million in U.S. sales and $2.2 million in ex-U.S. sales.
Collaboration revenues of $0.5 million comprised commercial supply and royalty revenues under the company’s license agreement with Zai Lab Limited (ZLAB - Free Report) .
In March 2021, Deciphera collaborated with Zai Lab to commercially launch Qinlock in China to treat adult patients with fourth-line GIST.
Research and development expenses were $74.9 million, up 43.2% year over year. The increase was primarily attributed to the one-time restructuring charge of $22.2 million related to employee termination costs and study discontinuation costs.
In November 2021, Deciphera announced a corporate restructuring plan to prioritize the development of select clinical programs, streamline commercial operations, reduce expenses and extend its cash runway. The company reduced its current workforce by approximately 35% or almost 140 positions.
Selling, general and administrative expenses were $37.2 million, up from $30.1 million in the year-ago quarter due to the one-time restructuring charge of $4 million related to employee termination costs as well as higher external costs to support the launch of Qinlock in Europe.
Deciphera had cash, cash equivalents and investments worth $327.6 million as of Dec 31, 2021, down from $392.2 million as of Sep 30, 2021.
Pipeline Updates
In November 2021, the European Commission approved Qinlock for treating adult patients with advanced GIST who have received prior treatment with three or more kinase inhibitors, including Novartis’ Gleevec.
In November 2021, Deciphera announced top-line data from the phase III INTRIGUE study evaluating the efficacy and safety of Qinlock compared to sunitinib for treating patients with GIST who were previously treated with imatinib. The study did not meet the primary endpoint of improved progression-free survival versus standard-of-care sunitinib in patients with second-line GIST. Deciphera shares plunged heavily on this news.
During the same time, Deciphera stopped a phase Ib/II study of Qinlock in combination with Mektovi (binimetinib), an approved MEK inhibitor, in patients with post-imatinib GIST.
Deciphera initiated the phase III MOTION study evaluating vimseltinib for the treatment of tenosynovial giant cell tumor (“TGCT”). The company plans to present updated data from a phase I/II study in TGCT patients in the second half of 2022.
The company is also planning to study DCC-3116 in combination with FDA-approved MEK inhibitor, trametinib, for treating patients with selected mutations in advanced or metastatic pancreatic ductal adenocarcinoma, non-small-cell lung cancer, colorectal cancer and melanoma in the second half of 2022.
Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Image: Bigstock
Deciphera (DCPH) Q4 Loss Wider Than Expected, Revenues Beat
Deciphera Pharmaceuticals, Inc. (DCPH - Free Report) reported fourth-quarter 2021 loss of $1.51 per share, wider than the Zacks Consensus Estimate of a loss of $1.49 and the year-ago quarter’s loss of $1.10.
Total net revenues were $24.2 million in the quarter, which surpassed the Zacks Consensus Estimate of $23 million. Revenues rose 24.1% year over year.
Shares of Deciphera were down 3.8% in after-hours trading on Tuesday following the earnings announcement. The stock has plunged 83.7% in the past year compared with the industry’s decline of 39.7%.
In May 2020, the FDA approved Deciphera’s sole marketed drug, Qinlock (ripretinib), to treat adult patients with advanced gastrointestinal stromal tumors (“GIST”) who have received prior treatment with three or more kinase inhibitors, including Novartis’ (NVS - Free Report) Gleevec (imatinib).
Novartis has lost the patent protection for Gleevec, which faces increasing generic competition in major markets.
Full-Year Results
For 2021, Deciphera generated total revenues of $96.1 million compared with $42.1 million recorded in 2020.
For full-year 2021, the company reported a loss of $5.16 per share compared with net loss of $4.78 per share in 2020.
Quarter in Detail
Apart from Qinlock, there are no other marketable drugs in the company’s portfolio. Total revenues comprised net product revenues and collaboration revenues. Net product revenues were $23.7 million, including $21.5 million in U.S. sales and $2.2 million in ex-U.S. sales.
Collaboration revenues of $0.5 million comprised commercial supply and royalty revenues under the company’s license agreement with Zai Lab Limited (ZLAB - Free Report) .
In March 2021, Deciphera collaborated with Zai Lab to commercially launch Qinlock in China to treat adult patients with fourth-line GIST.
Research and development expenses were $74.9 million, up 43.2% year over year. The increase was primarily attributed to the one-time restructuring charge of $22.2 million related to employee termination costs and study discontinuation costs.
In November 2021, Deciphera announced a corporate restructuring plan to prioritize the development of select clinical programs, streamline commercial operations, reduce expenses and extend its cash runway. The company reduced its current workforce by approximately 35% or almost 140 positions.
Selling, general and administrative expenses were $37.2 million, up from $30.1 million in the year-ago quarter due to the one-time restructuring charge of $4 million related to employee termination costs as well as higher external costs to support the launch of Qinlock in Europe.
Deciphera had cash, cash equivalents and investments worth $327.6 million as of Dec 31, 2021, down from $392.2 million as of Sep 30, 2021.
Pipeline Updates
In November 2021, the European Commission approved Qinlock for treating adult patients with advanced GIST who have received prior treatment with three or more kinase inhibitors, including Novartis’ Gleevec.
In November 2021, Deciphera announced top-line data from the phase III INTRIGUE study evaluating the efficacy and safety of Qinlock compared to sunitinib for treating patients with GIST who were previously treated with imatinib. The study did not meet the primary endpoint of improved progression-free survival versus standard-of-care sunitinib in patients with second-line GIST. Deciphera shares plunged heavily on this news.
During the same time, Deciphera stopped a phase Ib/II study of Qinlock in combination with Mektovi (binimetinib), an approved MEK inhibitor, in patients with post-imatinib GIST.
Deciphera initiated the phase III MOTION study evaluating vimseltinib for the treatment of tenosynovial giant cell tumor (“TGCT”). The company plans to present updated data from a phase I/II study in TGCT patients in the second half of 2022.
The company is also planning to study DCC-3116 in combination with FDA-approved MEK inhibitor, trametinib, for treating patients with selected mutations in advanced or metastatic pancreatic ductal adenocarcinoma, non-small-cell lung cancer, colorectal cancer and melanoma in the second half of 2022.
Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Deciphera Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Deciphera Pharmaceuticals, Inc. Quote
Zacks Rank & Stock to Consider
Deciphera currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Axsome Therapeutics, Inc. (AXSM - Free Report) , which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Axsome Therapeutics’ loss per share estimates have narrowed 0.8% for 2022 over the past 60 days.
Earnings of Axsome Therapeutics have surpassed estimates in three of the trailing four quarters, and missed the same on the other occasion.