Ophthotech Corporation (OPHT - Free Report) reported third-quarter 2016 loss of $1.71 per share, wider than both the Zacks Consensus Estimate of a loss of $1.60 and the year-ago loss of $1.14.
Since Ophthotech does not have any approved product in its portfolio yet, the company’s top line solely comprises collaboration revenues. The company earns collaboration revenues under its licensing and commercialization agreement with Novartis.
Collaboration revenues plunged 51.6% year over year to $1.7 million primarily due to lower shipments to Novartis AG (NVS - Free Report) . Reported revenues also missed the Zacks Consensus Estimate of $6.8 million by a wide margin.
Quarter in Detail
Research and development expenses increased 25.6% to $50.9 million primarily due to the phase III program on Fovista, including manufacturing expenses, personnel costs and share-based compensation expense.
General and administrative expenses increased 15.5% from the year-ago period to $12 million due to an increase in costs to support the company's expanded operations and infrastructure, which consists of additional management, corporate staffing, professional services and consulting fees, and increased share-based compensation.
The most advanced candidate in Ophthotech’s pipeline is Fovista. The company expects initial top-line data from two phase III study on Fovista, in combination with Lucentis, for the treatment of wet age-related macular degeneration (AMD), in the current quarter. Meanwhile, the company anticipates initial top-line data from a third phase III study evaluating Fovista in combination with either Eylea or Avastin in the second half of 2017.
The company is also enrolling patients in a phase II/III study on Zimura (an inhibitor of complement factor C5), another candidate in the company’s pipeline, in patients with geographic atrophy, an advanced form of dry AMD. Additionally, a phase II study evaluating Zimura in combination with anti-VEGF drugs for the treatment of wet AMD has been initiated.
Assuming a positive outcome from the phase III trials, Ophthotech plans to make Fovista commercially available to patients with wet AMD as quickly as possible.
OPHTHOTECH CORP Price, Consensus and EPS Surprise
Zacks Rank & Stocks to Consider
Ophthotech currently has a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the healthcare sector are Infinity Pharmaceuticals, Inc. (INFI - Free Report) and Anika Therapeutics (ANIK - Free Report) . Both Infinity and Anika sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here..
Anika’s earnings estimates increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 33.14%. Its share price has gained 13.1% year to date.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.
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