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Deciphera (DCPH) Q4 Loss Narrower Than Expected, Revenues Beat
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Deciphera Pharmaceuticals, Inc. (DCPH - Free Report) reported fourth-quarter 2023 loss of 54 cents per share, narrower than the Zacks Consensus Estimate of a loss of 58 cents. In the year-ago quarter, DCPH had incurred a loss of 60 cents per share.
Net revenues were $48.3 million, which beat the Zacks Consensus Estimate of $46 million. The figure rose almost 33% year over year.
Quarter in Detail
Total revenues comprise net product and collaboration revenues for Qinlock (ripretinib).
Deciphera’s sole marketed drug, Qinlock, was approved by the FDA in 2020 to treat adult patients with advanced gastrointestinal stromal tumors (GIST), who 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 the company’s portfolio.
Net product revenues from Qinlock sales were $46.7 million, up 41.9% year over year. The drug generated sales of $35.3 million and $11.4 million in the United States and ex-U.S. markets, respectively.
Qinlock’s net product revenues beat the Zacks Consensus Estimate of $44.7 million and our model estimate of $46 million.
Collaboration revenues totaled $1.6 million, down 52.9% year over year. The figure beat the Zacks Consensus Estimate of $1.24 million as well as our model estimate of $1 million.
Research and development expenses (including stock-based compensation) amounted to $58.6 million, up 21.8% year over year, owing to costs related to clinical studies on DCC-3116, vimseltinib and Qinlock.
Selling, general and administrative expenses (including stock-based compensation) totaled $39.1 million, up 21.4% year over year, owing to increased professional fees, personnel-related costs and consultant fees.
Deciphera had cash, cash equivalents and investments worth $352.9 million as of Dec 31, 2023, compared with $376.9 million as of Sep 30, 2023. The company 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 the second half of 2026.
Full-Year 2023 Results
For 2023, Deciphera generated total revenues of $163.4 million compared with $134 million recorded in 2022, witnessing year-over-year growth of 21.9%. The figure beat the Zacks Consensus Estimate of $161.2 million.
For the full year, the company reported a loss of $2.29 per share compared with a net loss of $2.37 per share in 2022. The net loss per share recorded in 2023 is narrower than the Zacks Consensus Estimate of a loss of $2.33 per share.
In the past year, shares of Deciphera have lost 5.7% compared with the industry’s 13.2% decline.
Image Source: Zacks Investment Research
Other Updates
Deciphera is working to expand the label of Qinlock for the larger commercial opportunity in GIST.
In 2023, the company initiated a phase III INSIGHT study evaluating Qinlock versus sunitinib in second-line GIST patients with mutations in KIT exon 11 and 17/18. Deciphera is currently enrolling patients in the late-stage INSIGHT study.
The company is also currently evaluating vimseltinib, its investigational and orally-administered CSF1R inhibitor, for potentially treating tenosynovial giant cell tumor (TGCT). In the last quarter, Deciphera reported positive top-line results from the pivotal phase III MOTION study of vimseltinib for TGCT.
Based on the encouraging results, the company expects to submit regulatory applications for vimseltinib to treat TGCT in the United States and EU in the second and third quarter of 2024, respectively.
Furthermore, Deciphera reported that it is gearing up to initiate a phase II proof-of-concept study of vimseltinib for the treatment of chronic graft versus host disease in the fourth quarter of 2024.
The company recently decided to prioritize the development of DCC-3116, an investigational switch-control kinase ULK1/2 inhibitor, designed to inhibit autophagy in combination with sotorasib and Qinlock. Following the decision, the company has discontinued the development of the encorafenib and cetuximab combination cohort before enrollment in any clinical studies as well as the two MEK combination cohorts.
DCPH expects to select a recommended phase II dose for the expansion cohort(s) for DCC-3116 in 2024.
Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has remained constant at 69 cents. Over the past year, shares of PBYI have risen 5.5%.
PBYI's earnings beat estimates in three of the last four quarters while missing on one occasion, delivering an average surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for Immunocore’s 2023 loss per share has remained constant at 95 cents. During the same period, the consensus estimate for Immunocore’s 2024 loss per share has remained constant at $1.42. Over the past year, shares of IMCR have jumped 20.8%.
IMCR's earnings beat estimates in two of the trailing four quarters and missed on the other two occasions. In the last reported quarter, IMCR reported an earnings surprise of 112.5%.
In the past 30 days, the Zacks Consensus Estimate for ImmunoGen’s 2023 EPS has remained constant at 7 cents. During the same period, the consensus estimate for ImmunoGen’s 2024 EPS has remained constant at 37 cents. Over the past year, shares of IMGN have skyrocketed 548.6%.
IMGN's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 136.05%.
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Deciphera (DCPH) Q4 Loss Narrower Than Expected, Revenues Beat
Deciphera Pharmaceuticals, Inc. (DCPH - Free Report) reported fourth-quarter 2023 loss of 54 cents per share, narrower than the Zacks Consensus Estimate of a loss of 58 cents. In the year-ago quarter, DCPH had incurred a loss of 60 cents per share.
Net revenues were $48.3 million, which beat the Zacks Consensus Estimate of $46 million. The figure rose almost 33% year over year.
Quarter in Detail
Total revenues comprise net product and collaboration revenues for Qinlock (ripretinib).
Deciphera’s sole marketed drug, Qinlock, was approved by the FDA in 2020 to treat adult patients with advanced gastrointestinal stromal tumors (GIST), who 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 the company’s portfolio.
Net product revenues from Qinlock sales were $46.7 million, up 41.9% year over year. The drug generated sales of $35.3 million and $11.4 million in the United States and ex-U.S. markets, respectively.
Qinlock’s net product revenues beat the Zacks Consensus Estimate of $44.7 million and our model estimate of $46 million.
Collaboration revenues totaled $1.6 million, down 52.9% year over year. The figure beat the Zacks Consensus Estimate of $1.24 million as well as our model estimate of $1 million.
Research and development expenses (including stock-based compensation) amounted to $58.6 million, up 21.8% year over year, owing to costs related to clinical studies on DCC-3116, vimseltinib and Qinlock.
Selling, general and administrative expenses (including stock-based compensation) totaled $39.1 million, up 21.4% year over year, owing to increased professional fees, personnel-related costs and consultant fees.
Deciphera had cash, cash equivalents and investments worth $352.9 million as of Dec 31, 2023, compared with $376.9 million as of Sep 30, 2023. The company 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 the second half of 2026.
Full-Year 2023 Results
For 2023, Deciphera generated total revenues of $163.4 million compared with $134 million recorded in 2022, witnessing year-over-year growth of 21.9%. The figure beat the Zacks Consensus Estimate of $161.2 million.
For the full year, the company reported a loss of $2.29 per share compared with a net loss of $2.37 per share in 2022. The net loss per share recorded in 2023 is narrower than the Zacks Consensus Estimate of a loss of $2.33 per share.
In the past year, shares of Deciphera have lost 5.7% compared with the industry’s 13.2% decline.
Image Source: Zacks Investment Research
Other Updates
Deciphera is working to expand the label of Qinlock for the larger commercial opportunity in GIST.
In 2023, the company initiated a phase III INSIGHT study evaluating Qinlock versus sunitinib in second-line GIST patients with mutations in KIT exon 11 and 17/18. Deciphera is currently enrolling patients in the late-stage INSIGHT study.
The company is also currently evaluating vimseltinib, its investigational and orally-administered CSF1R inhibitor, for potentially treating tenosynovial giant cell tumor (TGCT). In the last quarter, Deciphera reported positive top-line results from the pivotal phase III MOTION study of vimseltinib for TGCT.
Based on the encouraging results, the company expects to submit regulatory applications for vimseltinib to treat TGCT in the United States and EU in the second and third quarter of 2024, respectively.
Furthermore, Deciphera reported that it is gearing up to initiate a phase II proof-of-concept study of vimseltinib for the treatment of chronic graft versus host disease in the fourth quarter of 2024.
The company recently decided to prioritize the development of DCC-3116, an investigational switch-control kinase ULK1/2 inhibitor, designed to inhibit autophagy in combination with sotorasib and Qinlock. Following the decision, the company has discontinued the development of the encorafenib and cetuximab combination cohort before enrollment in any clinical studies as well as the two MEK combination cohorts.
DCPH expects to select a recommended phase II dose for the expansion cohort(s) for DCC-3116 in 2024.
Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Deciphera Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Deciphera Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Deciphera currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the drug/biotech industry are Puma Biotechnology, Inc. (PBYI - Free Report) , Immunocore (IMCR - Free Report) and ImmunoGen , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, the Zacks Consensus Estimate for Puma Biotech’s 2023 earnings per share (EPS) has remained constant at 73 cents. During the same time frame, the consensus estimate for Puma Biotech’s 2024 EPS has remained constant at 69 cents. Over the past year, shares of PBYI have risen 5.5%.
PBYI's earnings beat estimates in three of the last four quarters while missing on one occasion, delivering an average surprise of 76.55%.
In the past 30 days, the Zacks Consensus Estimate for Immunocore’s 2023 loss per share has remained constant at 95 cents. During the same period, the consensus estimate for Immunocore’s 2024 loss per share has remained constant at $1.42. Over the past year, shares of IMCR have jumped 20.8%.
IMCR's earnings beat estimates in two of the trailing four quarters and missed on the other two occasions. In the last reported quarter, IMCR reported an earnings surprise of 112.5%.
In the past 30 days, the Zacks Consensus Estimate for ImmunoGen’s 2023 EPS has remained constant at 7 cents. During the same period, the consensus estimate for ImmunoGen’s 2024 EPS has remained constant at 37 cents. Over the past year, shares of IMGN have skyrocketed 548.6%.
IMGN's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 136.05%.