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Why Is Deciphera Pharmaceuticals, Inc. (DCPH) Down 7.1% Since Last Earnings Report?

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A month has gone by since the last earnings report for Deciphera Pharmaceuticals, Inc. (DCPH - Free Report) . Shares have lost about 7.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Deciphera Pharmaceuticals, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Deciphera's Q4 Earnings Miss, Qinlock Drives Revenues

Deciphera reported a fourth-quarter 2022 loss of 60 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents. In the year-ago quarter, DCPH had reported a loss of $1.51.

Total net revenues were $36.35 million in the quarter, surpassing the Zacks Consensus Estimate of $35.52 million. Revenues rose 50.2% year over year.

In May 2020, the FDA approved Deciphera’s sole marketed drug Qinlock (ripretinib) to treat adult patients with advanced GIST, who received prior treatment with three or more kinase inhibitors, including Novartis’ Gleevec (imatinib).

Full-Year Results

For 2022, Deciphera generated total revenues of $134 million compared with $96.1 million recorded in 2021, witnessing year-over-year growth of 39.41%.

For the full-year 2022, the company reported a loss of $2.37 per share compared with a net loss of $5.16 per share in 2021.

Quarter in Detail

Apart from Qinlock, there is no marketable drug in Deciphera’s portfolio. Total revenues comprised net product revenues and collaboration revenues. Net product revenues from Qinlock sales were $32.9 million, up 39% year over year. Qinlock generated $25.6 million in sales in the United States and $7.3 million in sales in the ex-U.S. markets.

Collaboration revenues in the reported quarter were $3.5 million compared with $0.5 million recorded in the year-ago quarter.

Research and development expenses were $48 million, down 35.9% year over year, owing to lower costs related to clinical studies on Qinlock and the discontinuation of the rebastinib program after corporate restructuring implemented in the fourth quarter of 2021.

Selling, general and administrative expenses were $32.2 million, down 13.3% year over year owing to lower professional and consultant fees.

Deciphera had cash, cash equivalents and investments worth $339 million as of Dec 31, 2022, compared with $327.6 million as of Dec 31, 2021. Deciphera expects its current cash balance together with the anticipated product, royalty, supply revenues and the net proceeds from its underwritten public offering completed in January 2023 to fund its operating and capital expenditures into 2026.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Deciphera Pharmaceuticals, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.


Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Deciphera Pharmaceuticals, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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