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Agios (AGIO) Q2 Earnings Beat Estimates, Revenues In Line
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Agios Pharmaceuticals, Inc. (AGIO - Free Report) reported a second-quarter 2023 adjusted loss of $1.51 per share, narrower than the Zacks Consensus Estimate of a loss of $1.60. In the year-ago quarter, the company posted a loss of $1.68 per share.
Revenues of $6.7 million were in line with the Zacks Consensus Estimate. In the year-ago quarter, the company recorded total revenues of $5.6 million.
The stock has declined 7.6% year to date against the industry’s 0.6% growth.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, revenues were generated entirely from product revenues of Agios’ only marketed drug, Pyrukynd (mitapivat), which was approved by the FDA for treating hemolytic anemia in adults with pyruvate kinase (PK) deficiency in February 2022.
Pyrukynd revenues in the United States were up 116% year over year and 20% sequentially. The rise can be attributed to positive patient experiences and strong persistent use of Pyrukynd, resulting in low discontinuation rates for the drug. The top line was on par with our model estimate of $6.7 million.
Research & development expenses totaled $68.9 million, down 7.5% year over year. The downside was due to lower headcount and workforce-related expenses, resulting from changes in the research organization's structure.
Selling, general and administrative expenses increased 7.4% year over year to $30.4 million, primarily due to higher stock-based compensation expense.
As of Jun 30, 2023, cash, cash equivalents and marketable securities totaled $946.9 million compared with $1100 million as of Mar 31, 2023.
Pipeline Updates
Earlier yesterday, Agios and Alnylam Pharmaceuticals (ALNY - Free Report) announced an exclusive worldwide license agreement. The agreement grants Agios the right to develop and market ALNY's preclinical siRNA targeting TMPRSS6, as a potential disease-modifying therapy for patients with polycythemia vera, a rare and potentially fatal hematologic disease.
Under the deal, AGIO will make an upfront payment of $17.5 million to ALNY for the exclusive global license. Additionally, Alnylam will receive up to $130 million in potential milestone payments and royalties.
Agios has two ongoing phase III studies, ACTIVATE-kids and ACTIVATE-kidsT. While ACTIVATE-kids evaluaties Pyrukynd in pediatric patients who are not regularly transfused, ACTIVATE-kidsT does the same in those who are regularly transfused. AGIO anticipates to enroll at least half of the patients in the studies by 2023-end.
Apart from PK deficiency, the company is also evaluating Pyrukynd for thalassemia. Management recently completed patient enrollment in the phase III studies — ENERGIZE and ENERGIZE-T — evaluating Pyrukynd in adults with thalassemia.
In July, the phase II portion of the phase II/III RISE UP study of Pyrukynd in sickle cell disease met its primary endpoint of hemoglobin response rate in patients receiving both the 50-mg and 100-mg twice-daily doses of Pyrukynd. Agios plans to enroll patients with a 100-mg dose for the phase III portion of the study by the fourth quarter of 2023.
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics has widened from a loss of $2.60 per share to a loss of $2.61 for 2023. The consensus estimate has narrowed from a loss of $2.75 per share to a loss of $2.55 for 2024 during the same time frame. Shares of the company have lost 60.9% year to date.
ADCT’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 10.70%.
In the past 90 days, the Zacks Consensus Estimate for ImmunoGen has narrowed from a loss of 56 cents per share to a loss of 21 cents for 2023. The consensus estimate has improved from a loss of 30 cents per share to a profit of 3 cents for 2024 during the same time frame. Shares of the company have rallied 234.1% year to date.
IMGN’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 31.24%.
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Agios (AGIO) Q2 Earnings Beat Estimates, Revenues In Line
Agios Pharmaceuticals, Inc. (AGIO - Free Report) reported a second-quarter 2023 adjusted loss of $1.51 per share, narrower than the Zacks Consensus Estimate of a loss of $1.60. In the year-ago quarter, the company posted a loss of $1.68 per share.
Revenues of $6.7 million were in line with the Zacks Consensus Estimate. In the year-ago quarter, the company recorded total revenues of $5.6 million.
The stock has declined 7.6% year to date against the industry’s 0.6% growth.
Image Source: Zacks Investment Research
Quarter in Detail
In the reported quarter, revenues were generated entirely from product revenues of Agios’ only marketed drug, Pyrukynd (mitapivat), which was approved by the FDA for treating hemolytic anemia in adults with pyruvate kinase (PK) deficiency in February 2022.
Pyrukynd revenues in the United States were up 116% year over year and 20% sequentially. The rise can be attributed to positive patient experiences and strong persistent use of Pyrukynd, resulting in low discontinuation rates for the drug. The top line was on par with our model estimate of $6.7 million.
Research & development expenses totaled $68.9 million, down 7.5% year over year. The downside was due to lower headcount and workforce-related expenses, resulting from changes in the research organization's structure.
Selling, general and administrative expenses increased 7.4% year over year to $30.4 million, primarily due to higher stock-based compensation expense.
As of Jun 30, 2023, cash, cash equivalents and marketable securities totaled $946.9 million compared with $1100 million as of Mar 31, 2023.
Pipeline Updates
Earlier yesterday, Agios and Alnylam Pharmaceuticals (ALNY - Free Report) announced an exclusive worldwide license agreement. The agreement grants Agios the right to develop and market ALNY's preclinical siRNA targeting TMPRSS6, as a potential disease-modifying therapy for patients with polycythemia vera, a rare and potentially fatal hematologic disease.
Under the deal, AGIO will make an upfront payment of $17.5 million to ALNY for the exclusive global license. Additionally, Alnylam will receive up to $130 million in potential milestone payments and royalties.
Agios has two ongoing phase III studies, ACTIVATE-kids and ACTIVATE-kidsT. While ACTIVATE-kids evaluaties Pyrukynd in pediatric patients who are not regularly transfused, ACTIVATE-kidsT does the same in those who are regularly transfused. AGIO anticipates to enroll at least half of the patients in the studies by 2023-end.
Apart from PK deficiency, the company is also evaluating Pyrukynd for thalassemia. Management recently completed patient enrollment in the phase III studies — ENERGIZE and ENERGIZE-T — evaluating Pyrukynd in adults with thalassemia.
In July, the phase II portion of the phase II/III RISE UP study of Pyrukynd in sickle cell disease met its primary endpoint of hemoglobin response rate in patients receiving both the 50-mg and 100-mg twice-daily doses of Pyrukynd. Agios plans to enroll patients with a 100-mg dose for the phase III portion of the study by the fourth quarter of 2023.
Agios Pharmaceuticals, Inc. Price and Consensus
Agios Pharmaceuticals, Inc. price-consensus-chart | Agios Pharmaceuticals, Inc. Quote
Zacks Rank & Other Stocks to Consider
Currently, Agios carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks in the same industry are ADC Therapeutics (ADCT - Free Report) and ImmunoGen , both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics has widened from a loss of $2.60 per share to a loss of $2.61 for 2023. The consensus estimate has narrowed from a loss of $2.75 per share to a loss of $2.55 for 2024 during the same time frame. Shares of the company have lost 60.9% year to date.
ADCT’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 10.70%.
In the past 90 days, the Zacks Consensus Estimate for ImmunoGen has narrowed from a loss of 56 cents per share to a loss of 21 cents for 2023. The consensus estimate has improved from a loss of 30 cents per share to a profit of 3 cents for 2024 during the same time frame. Shares of the company have rallied 234.1% year to date.
IMGN’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 31.24%.