It has been about a month since the last earnings report for Deciphera Pharmaceuticals, Inc. (
DCPH Quick Quote DCPH - Free Report) . Shares have added about 3.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Deciphera Pharmaceuticals, Inc. due for a pullback? 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.
Deciphera Q1 Earnings Match Estimates, Sales Miss
Deciphera Pharmaceuticals, Inc. reported first-quarter 2023 loss of 60 cents per share, which was in line with the Zacks Consensus Estimate. In the year-ago quarter, DCPH had reported a loss of 80 cents per share.
Total net revenues were $33.4 million in the quarter, missing the Zacks Consensus Estimate of $35 million. Revenues rose 15% year over year.
Deciphera’s sole marketed drug is Qinlock (ripretinib), which was approved by the FDA in 2020 to treat adult patients with advanced GIST. These patients received prior treatment with three or more kinase inhibitors, including Novartis’ Gleevec (imatinib). Qinlock was approved in Europe in late 2021. Apart from Qinlock, there is no marketed drug in Deciphera’s portfolio.
Quarter in Detail
Total revenues comprised net product revenues and collaboration revenues. Net product revenues from Qinlock sales were $33.2 million, up 15.3% year over year. Qinlock generated $24.6 million in sales in the United States and $8.6 million in sales in the ex-U.S. markets.
Collaboration revenues in the reported quarter were $0.2 million compared with $0.4 million recorded in the year-ago quarter.
Research and development expenses were $54.8 million, up 15.5% year over year owing to costs related to clinical studies on vimseltinib and Qinlock.
Selling, general and administrative expenses were $31.4 million, up 11% year over year owing to increased professional and consultant feespartially offset by a decrease in personnel-related costs.
Deciphera had cash, cash equivalents and investments worth $426.3 million as of Mar 31, 2023, compared with $339.0 million as of Dec 31, 2022. Deciphera expects its current cash balance together with the anticipated product, royalty and supply revenues, excluding any potential future milestone payments under its collaboration or license agreements to fund its operating and capital expenditures into 2026.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
At this time, Deciphera Pharmaceuticals, Inc. has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward 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.