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ChemoCentryx (CCXI) Q4 Earnings and Sales Miss Estimates

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ChemoCentryx Inc. (CCXI - Free Report) reported fourth-quarter 2021 loss of 58 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents and the year-ago quarter loss of 43 cents.

It recorded revenues of $2.3 million, which missed the Zacks Consensus Estimate of $3 million and declined from $4.3 million in the year-ago quarter.

In  October 2021, ChemoCentryx received FDA approval for its lead candidate, avacopan, as an adjunctive treatment combined with standard therapy for two main forms of anti-neutrophil cytoplasmic autoantibody (ANCA)-associated vasculitis — granulomatosis with polyangiitis and microscopic polyangiitis. The drug was launched in the United States in October under the brand name Tavneos.    

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Shares of ChemoCentryx have plunged 52.7% in the year in comparison with the industry’s 28.3% decline.

 

Quarter in Detail

Tavneos generated net product sales of approximately $1.0 million during the fourth quarter of 2021 from commercial sales in the country. Representing a 71% conversion rate from PSFs, 127 patient start forms (PSFs) have been received and 90 patients started treatment with the drug.

Research and development expenses were $18.8 million in the quarter compared with $21.2 million in the year-ago quarter.

Selling, general and administrative expenses increased to $23.3 million from $12.7 million due to higher employee-related expenses associated with commercialization planning efforts and the launch of Tavneos in the United States.

The company had $362.3 million in cash, cash equivalents and investments as of Dec 31, 2021.

2021 Results

Revenues came in at $32.2 million, down from $64.9 million in 2020.  Loss per share was $1.89 compared with a loss of 84 cents in 2020. 

ChemoCentryx, Inc. Price, Consensus and EPS Surprise

ChemoCentryx, Inc. Price, Consensus and EPS Surprise

ChemoCentryx, Inc. price-consensus-eps-surprise-chart | ChemoCentryx, Inc. Quote

Pipeline Updates

In January 2022, Tavneos was approved in the EU in combination with a rituximab or cyclophosphamide regimen for the treatment of adult patients with severe, active GPA or MPA. The EU approval triggered a $45 million milestone from ChemoCentryx’ partner, Vifor Pharma. This payment was received in the ongoing quarter.

We note that the drug was also approved in Japan in September 2021. ChemoCentryx will get royalties in the teens to the mid-20% on potential aggregate net sales from territories outside the United States which are under Vifor.

ChemoCentryx plans to initiate clinical development of avacopan in patients with lupus nephritis in the second half of the year. The company plans to meet with the FDA to discuss the late-stage development of Tavneos in patients with Hurley Stage III (severe) HS in 2022, with the goal of initiating a phase III study in those patients in the second half of 2022.

It also plans to meet with the FDA in 2022 to discuss the dataset from the phase III ACCOLADE study in the very rare disorder C3G, for which there are no FDA-approved therapies.

Zacks Rank & Stocks to Consider

ChemoCentryx currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare space are Axsome Therapeutics, Inc. (AXSM - Free Report) , Dynavax Technologies Corporation (DVAX - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) , all carrying 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 to $3.64 from $3.66 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.

Dynavax’s earnings estimates have increased to $1.24 from $1.18 for 2022 over the past 60 days. The stock has rallied 37.8% in the past year.

Earnings of Dynavax have surpassed estimates in each of the trailing four quarters.

Vertex’ Pharmaceuticals earnings per share estimates have increased to $15.31 from $13.85 for 2022 over the past 60 days.

The consensus estimate for 2022 earnings for Vertex has increased $1.01 over the past 30 days to $14.33. Shares of VRTX gained 9.4% in the past year.