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Sesen Bio (SESN) to Report Q3 Earnings: What's in the Cards?

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In the third quarter of 2022 results,we expect investors to focus onSesen Bio’s near-term strategic priorities to maximize shareholder value and the development of its pipeline candidates.

Sesen Bio’s earnings surpassed expectations in all of the trailing four quarters, the average surprise being 89.49%. In the last reported quarter, Sesen Bio posted an earnings surprise of 61.54%.

SESEN BIO, INC. Price, Consensus and EPS Surprise


SESEN BIO, INC. Price, Consensus and EPS Surprise

SESEN BIO, INC. price-consensus-eps-surprise-chart | SESEN BIO, INC. Quote


In the year so far, shares of Sesen Bio have declined 36.1% compared with the industry’s 23.7% fall.

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

Factors to Consider

Sesen Bio is a late-stage clinical biopharma focused on developing targeted protein therapeutics for cancer patients. The company currently has only one candidate in its portfolio, Vicineum, also called VB4-845, for treating non-muscle invasive bladder cancer (“NMIBC”).

In July 2022, Sesen Bio decided to pause the further development of Vicineum in the United States, based on a thorough reassessment of the candidate. This included the incremental development timeline and associated costs for an additional phase III study following a discussion with the FDA.

The aforementioned decision was a part of a restructuring plan that the company approved in the last reported quarter, which is expected to be completed by the fourth quarter of 2022.

The research and development expenses of the company were up almost by 318% year over year in the last reported quarter.The restructuring strategies and cost-saving initiatives are expected to have lowered the overall operating expenses in the third quarter. The company will discuss the estimated impact of the restructuring in the third quarter of 2022.

Q3 Development

Sesen Bio entered into an agreement with Roche (RHHBY - Free Report) in July 2022, per the terms of which Sesen Bio sold off all the patent rights to its wholly-owned monoclonal antibody EBI-031 and all other IL-6 anti-IL antagonist monoclonal antibody technology to Roche for a payment of $70 million.

Pursuant to the agreement terms, Sesen Bio received an upfront payment of $40 million from Roche upon the execution of the agreement and is eligible to receive an additional $30 million when Roche initiates a phase III study evaluating EBI-031 for a defined indication before December 2026.

Post Quarter Development

Sesen Bio, in September, announced that it has entered into a definitive merger agreement with Carisma Therapeutics to combine both companies in an all-stock transaction.

Post the merger, the combined company will concentrate on advancing Carisma’s proprietary cell therapy platform that has the potential to transform cancer treatment as well as the treatment of other serious diseases.

The merged company will, in all probabilities, operate under the name Carisma Therapeutics and trade on Nasdaq under the ticker symbol CARM.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for Sesen Bio 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Sesen Bio has an Earnings ESP of 0.00% as both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at a loss of 8 cents.

Zacks Rank: Sesen Bio currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks in the same industry that have the right combination of elements to beat on earnings this time around:

Editas Medicine (EDIT - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank #2.

Editas’ stock has declined 54.1% in the year so far. EDIT beat earnings expectations in each of the trailing four quarters, the average surprise being 17.82%.

Immunocore (IMCR - Free Report) has an Earnings ESP of 73.75% and a Zacks Rank #3 (Hold).

Immunocore’s stock has risen 63.2% in the year so far. IMCR beat earnings estimates in three of the trailing four quarters, missing the same in one. It has an average earnings surprise of 33.28%.

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Roche Holding AG (RHHBY) - free report >>

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Immunocore Holdings PLC Sponsored ADR (IMCR) - free report >>

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