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What to Expect From Precision BioSciences (DTIL) Q4 Earnings

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We expect investors to focus on updates on Precision BioSciences’ (DTIL - Free Report) progress of pipeline candidates, especially its allogenic CAR-T immunotherapies, when it reports fourth-quarter 2021 results.

The company’s earnings beat expectations in each of the trailing four quarters, with the average being 76.9%. In the last reported quarter, Precision BioSciences delivered an earnings surprise of 68.3%.

In the trailing 12 months, shares of Precision BioSciences have plunged 59.2% compared with the industry’s 38.7% decline.

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Let’s see how things have shaped up for the quarter to be reported.

Factors to Consider

Precision BioSciences currently does not have any approved product in its portfolio. As a result, the company is yet to generate revenues from product sales.

We remind investors that Precision BioSciences has developed CAR-T candidates using its proprietary ARCUS genome-editing platform. Using this technology, the company has developed many candidates, out of which three candidates are undergoing clinical development.

PBCAR0191, DTIL’s allogenic CAR-T cell designed to target CD19, is being evaluated in a phase I/IIa study as a potential treatment for relapsed/refractory (R/R) non-Hodgkin lymphoma (“NHL”) or R/R B-cell precursor acute lymphoblastic leukemia (“B-ALL”). In December 2021, Precision BioSciences announced updated data from this study, which evaluated PBCAR0191 in 22 heavily treated patients (17 in NHL and 5 in B-ALL). As of the cut-off date of Nov 16, 2021, the study achieved an overall response rate of 73%, including a response rate of 59%, in patients who received treatment with the candidate following enhanced lymphodepletion.

The 22 patients also included 6 patients who had previously received an autologous CAR T therapy. DTIL reported that while all patients responded to treatment with PBCAR0191, 66% achieved complete response on or after Day 28.

Precision BioSciences is also evaluating its next-generation stealth-cell CD19 product candidate, PBCAR19B, in a phase I study for treating patients with R/R NHL. Data from the study is expected in mid-2022.

While the successful development of all these candidates remains a key focus for the company, DTIL has been facing some pipeline setbacks.

DTIL is also evaluating another CAR-T therapy candidate, PBCAR269A, in multiple cohorts in a phase I/IIa study for treating R/R multiple myeloma. In December 2021, the company announced that a monotherapy cohort of the candidate did not yield comparable results with autologous CAR-T profiles in multiple myeloma. Based on this data, it has decided to discontinue the monotherapy study but evaluate a combination of PBCAR269A with nirogacestat, a gamma secretase inhibitor in the given indication. Data from the study is expected in mid-2022.

During the quarter under review, the company completed the spin-out of its wholly-owned subsidiary Elo Life Systems into an independent food and agriculture business. The separation will allow DTIL to focus on its core business of developing novel genome editing therapies.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Precision BioSciences this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate stand at a loss of 50 cents.

Zacks Rank: Precision BioSciences currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

BioDelivery Sciences has an Earnings ESP of +114.29% as the Most Accurate Estimate of 5 cents per share is higher than the Zacks Consensus Estimate of 2 cents. BioDelivery Sciences currently holds a Zacks Rank #3 at present.

BioDelivery Sciences’ earnings per share estimates for 2022 have increased from 32 cents to 33 cents in the past 30 days. BioDelivery Sciences beat earnings estimates in three of the last four quarters while missing the mark on one occasion, delivering a negative surprise of 33.7%, on average.

Gamida Cell (GMDA - Free Report) has an Earnings ESP of +13.64% as the Most Accurate Estimate of a loss of 38 cents per share is narrower than the Zacks Consensus Estimate of a loss of 44 cents. Gamida Cell currently carries a Zacks Rank #2 at present.

Gamida Cell’s loss per share estimates for 2022 have narrowed from $1.83 to $1.35 in the past 30 days. Gamida Cell topped earnings estimates in two of the last four quarters and missed the mark on the other two occasions, delivering a negative surprise of 22.6%, on average.

Moderna (MRNA - Free Report) has an Earnings ESP of +1.90% as the Most Accurate Estimate of $10.02 per share is higher than the Zacks Consensus Estimate of $9.83. Moderna currently has a Zacks Rank #3 at present.

In the past 30 days, earnings per share estimates of Moderna for 2022 have increased from $25.98 to $26.98 in the past 30 days. In fact, Moderna topped earnings estimates in two of the last four quarters and missed the mark on the other two occasions, delivering a negative surprise of 35.8%, on average.

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