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ChemoCentryx (CCXI) Q1 Earnings and Sales Miss Estimates

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ChemoCentryx Inc. (CCXI - Free Report) reported first-quarter 2022 loss of 55 cents per share, wider than the Zacks Consensus Estimate of a loss of 30 cents and the year-ago quarter’s loss of 43 cents.

Total revenues were recorded at $5.5 million, missing the Zacks Consensus Estimate of $25.7 million and declining from $10.4 million in the year-ago quarter.

Quarter in Detail

ChemoCentryx received an FDA approval last October for its lead candidate avacopan as an adjunctive treatment combined with the standard therapy for two main forms of anti-neutrophil cytoplasmic autoantibody (ANCA)-associated vasculitis, namely granulomatosis with polyangiitis (GPA) and microscopic polyangiitis (MPA). The drug is being marketed under the brand name Tavneos.

Tavneos generated net product sales of $5.4 million during the first quarter of 2022 entirely from its commercial sales in the United States. Sales rose more than five-fold from the fourth-quarter 2021 reading. In the year-ago quarter, ChemoCentryx did not record any revenues from product sales.

During the first quarter, CCXI received 248 new patient start forms (PSFs) for the drug, which is nearly 95% higher than the figure reported in the previous quarter. As of March-end, 277 patients continue to be treated with Tavneos, reflecting a 208% sequential rise.

Collaboration revenues recorded during the quarter were $0.1 million compared with $10.2 million in the year-ago quarter. This substantial decline was triggered by a milestone payment received from partner Vifor Pharma in the year-ago quarter due to the acceptance of a regulatory filing for Tavneos to address ANCA-associated vasculitis in Japan.

Research and development expenses were $17.5 million in the quarter compared with $23.4 million in the year-ago quarter. This decline was on account of a reduction in clinical expenses on completing the phase IIb TAVNEOS AURORA study evaluating Tavneos for the hidradenitis suppurativa (HS) indication.

Selling, general and administrative expenses increased to $26 million from $16.3 million due to higher employee-related expenses associated with commercialization planning efforts and the launch of Tavneos in the United States.

ChemoCentryxhad $371.8 million in cash, cash equivalents and investments as of Mar 31, 2022.

Recent Updates

In January 2022, Tavneos was approved in the EU combined with a rituximab or cyclophosphamide regimen for the treatment of adult patients with a severe, active GPA or an MPA. The EU approval triggered a $45 million milestone from ChemoCentryx’ partner Vifor Pharma. While this payment was received by CCXI during the quarter, its accounting treatment will recognize the same as collaboration revenues over a four-year period.

Shares of CCXI were up 13.2% in after-hours trading on May 5, possibly on the receipt of the milestone payment. Yet, the stock has plunged 50.9% in the year so far compared with the industry’s 22.6% decline.

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ChemoCentryx will get royalties in the teens-to-the-mid-20% range on the potential aggregate net sales from territories outside the United States, which are under Vifor’s coverage. Tavneos also received a regulatory nod in Canada last month for treating ANCA-associated vasculitis.

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

Zacks Rank & Stocks to Consider

ChemoCentryx currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector are Abeona Therapeutics (ABEO - Free Report) , Alkermes (ALKS - Free Report) and Amicus Therapeutics (FOLD - Free Report) . While Alkermes sports a Zacks Rank #1 (Strong Buy) at present, both Abeona Therapeutics and Amicus Therapeutics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkermes’ loss per share estimates for 2022 have narrowed from 14 cents to 3 cents in the past 30 days. Shares of ALKS have risen 20% in the year-to-date period.

Earnings of Alkermes beat estimates in each of the last four quarters, the average being 350.5%. In the last reported quarter, Alkermes delivered an earnings surprise of 1,100%.

Amicus Therapeutics’ loss per share estimates for 2023 have narrowed from 19 cents to 16 cents in the past 30 days. Shares of FOLD have declined 42.7% in the year-to-date period.

Earnings of Amicus Therapeutics missed estimates in three of the last four quarters and beat the mark on one occasion, witnessing a negative surprise of 28%, on average. In the last reported quarter, Amicus Therapeutics delivered a negative earnings surprise of 107.1%.

Abeona Therapeutics’ loss per share estimates for 2022 have narrowed from 34 cents to 33 cents in the past 30 days. Shares of ABEO have declined 46.2% in the year-to-date period.

Abeona Therapeutics has a mixed surprise history, with its earnings having surpassed expectations in one of the trailing four quarters, missing the mark in another and meeting the same on the remaining two occasions. The average earnings surprise was 0.7%. In the last reported quarter, Abeona Therapeutics missed earnings estimates by 7.7%.