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ImmunoGen (IMGN) Down 16.6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for ImmunoGen . Shares have lost about 16.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ImmunoGen due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ImmunoGen’s Q4 Loss Narrower Than Expected, Sales Top
ImmunoGen incurred a loss of 23 cents per share, narrower than the Zacks Consensus Estimate of 29 cents. In the year-ago quarter, it had reported a loss of 17 cents per share.
Revenues were $141 million, beating the Zacks Consensus Estimate of $18 million. Sales were up 46.4% year over year, driven by non-cash royalty revenues, and higher license and milestone fees.
Quarter in Detail
Net product revenues from the company’s first approved product, Elahere, were $2.6 million. Elahere was approved by the FDA for FRα-positive platinum-resistant ovarian cancer in November 2022. No product revenues were recorded in the year-ago quarter.
Fourth-quarter revenues included $7.7 million in non-cash royalty revenues, down almost 4% year over year.
Total license and milestone fee revenues were $30.7 million, up 57.3% year over year. This improvement was driven by Immunogen’s license agreements with Eli Lilly, Huadong Medicine and Viridian Therapeutics.
Research and development (R&D) expenses increased 19.3% from the year-ago quarter’s level to $58.5 million. This was due to increased personnel and temporary staffing expenses, and expenditures related to contract services and clinical studies. The R&D expenses also increased due to a rise in external manufacturing costs for supporting the launch of Elahere.
General and administrative expenses increased 210% year over year to $42.1 million. This was due to costs related to building commercial capabilities for the launch of Elahare in the United States.
ImmunoGen’s cash and cash equivalents were $275.1 million compared with $309.5 million as of Sep 30, 2022.
Full-Year Results
Net loss for the year was 88 cents per share, 29% wider than the previous year’s loss.
2023 Guidance
The company expects full-year revenues in the $30-$35 million range, excluding product revenues from Elahere.
Operating expenses are expected in the range of $310 million to $320 million.
ImmunoGen expects to provide Elahere product revenue guidance later this year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 10.52% due to these changes.
VGM Scores
Currently, ImmunoGen has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ImmunoGen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ImmunoGen belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Theravance Biopharma (TBPH - Free Report) , has gained 6.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Theravance Bio reported revenues of $14.65 million in the last reported quarter, representing a year-over-year change of -2%. EPS of -$0.21 for the same period compares with -$0.43 a year ago.
For the current quarter, Theravance Bio is expected to post a loss of $0.27 per share, indicating a change of -12.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Theravance Bio. Also, the stock has a VGM Score of F.
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ImmunoGen (IMGN) Down 16.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for ImmunoGen . Shares have lost about 16.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ImmunoGen due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ImmunoGen’s Q4 Loss Narrower Than Expected, Sales Top
ImmunoGen incurred a loss of 23 cents per share, narrower than the Zacks Consensus Estimate of 29 cents. In the year-ago quarter, it had reported a loss of 17 cents per share.
Revenues were $141 million, beating the Zacks Consensus Estimate of $18 million. Sales were up 46.4% year over year, driven by non-cash royalty revenues, and higher license and milestone fees.
Quarter in Detail
Net product revenues from the company’s first approved product, Elahere, were $2.6 million. Elahere was approved by the FDA for FRα-positive platinum-resistant ovarian cancer in November 2022. No product revenues were recorded in the year-ago quarter.
Fourth-quarter revenues included $7.7 million in non-cash royalty revenues, down almost 4% year over year.
Total license and milestone fee revenues were $30.7 million, up 57.3% year over year. This improvement was driven by Immunogen’s license agreements with Eli Lilly, Huadong Medicine and Viridian Therapeutics.
Research and development (R&D) expenses increased 19.3% from the year-ago quarter’s level to $58.5 million. This was due to increased personnel and temporary staffing expenses, and expenditures related to contract services and clinical studies. The R&D expenses also increased due to a rise in external manufacturing costs for supporting the launch of Elahere.
General and administrative expenses increased 210% year over year to $42.1 million. This was due to costs related to building commercial capabilities for the launch of Elahare in the United States.
ImmunoGen’s cash and cash equivalents were $275.1 million compared with $309.5 million as of Sep 30, 2022.
Full-Year Results
Net loss for the year was 88 cents per share, 29% wider than the previous year’s loss.
2023 Guidance
The company expects full-year revenues in the $30-$35 million range, excluding product revenues from Elahere.
Operating expenses are expected in the range of $310 million to $320 million.
ImmunoGen expects to provide Elahere product revenue guidance later this year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 10.52% due to these changes.
VGM Scores
Currently, ImmunoGen has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, ImmunoGen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ImmunoGen belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Theravance Biopharma (TBPH - Free Report) , has gained 6.1% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Theravance Bio reported revenues of $14.65 million in the last reported quarter, representing a year-over-year change of -2%. EPS of -$0.21 for the same period compares with -$0.43 a year ago.
For the current quarter, Theravance Bio is expected to post a loss of $0.27 per share, indicating a change of -12.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Theravance Bio. Also, the stock has a VGM Score of F.