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ImmunoGen Posts Wider-than-Expected Loss; Sales Down Y/Y
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ImmunoGen, Inc. reported a loss of 39 cents per share (excluding restructuring charge) in the three month transition period ended Dec 31, marginally wider than both the Zacks Consensus Estimate and the year-ago loss of 38 cents. We note that effective from Jan 1, 2017, ImmunoGen has transitioned to a fiscal year ending Dec 31.
ImmunoGen’s shares declined 2.8% following its earnings release. The company’s stock outperformed the Zacks classified Medical-Drugs industry year to date. The company’s shares gained 18.6% compared with the industry’s increase of 6.9%.
Since ImmunoGen does not have any approved product in its portfolio yet, the company earns revenues through royalties, license and milestone payments, as well as research and development (R&D) support fees paid by its partners.
Revenues decreased 23.3% year over year to $13.8 million and missed the Zacks Consensus Estimate of $19 million in the quarter ended Dec 31, 2016.
R&D expenses decreased 11.8% from the year-ago level to $33.7 million. This was primarily due to lower third-party costs related to activities in the prior-year period. Selling, general and administrative (SG&A) expenses were up 6.3% to $8.5 million due to higher third-party service fees associated with the company's strategic review, partially offset by lower salaries and related expenses and lesser administrative expenses.
During the quarter, the company restructured its operations and reduced its workforce by 17% or 65 positions in technical operations and general and administration functions.
Pipeline Update
ImmunoGen continues to progress with its pipeline. In Jan 2017, the first patient was dosed in a phase III study (FORWARD I) of its lead candidate mirvetuximab soravtansine for the treatment of platinum-resistant ovarian cancer.
Meanwhile, combination regimens with mirvetuximab soravtansine in ovarian cancer are being evaluated in the phase Ib/II FORWARD II study. The company expects to report initial data from FORWARD II study in the second quarter of 2017.
Furthermore, a phase I study on IMGN779 for the treatment of acute myeloid leukemia is currently underway. Initial data from the study should be out in mid-2017. Additionally, the company is planning to file an investigational new drug (IND) application for IMGN632, a CD123-targeting antibody-drug conjugate (ADC) in the third quarter of 2017.
2016 Results (six months ended Dec 31)
ImmunoGen’s sales for the six months ended Dec 31 2016, increased 34.7% year over year to $21.5 million. Sales missed the Zacks Consensus Estimate of $61.8 million.
The company incurred a loss of 85 cents per share in the six months ended Dec 31 2016, which is significantly narrower than Zacks Consensus Estimate of a loss of $1.65. The company had posted earnings of 77 cents per share a year ago.
2017 Outlook
The company expects revenues in the range of $70 million to $75 million, which includes $28 million of expected upfront and milestone fees from partners.
Operating expenses are projected in the range of $175 million and $180 million for 2017.
Cash and marketable securities are expected to be between $35 million and $40 million at Dec 31, 2017. The company expects its current cash and expected cash will enable the company to fund its operations into the second quarter of 2018.
ImmunoGen currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector include Cellectis S.A. (CLLS - Free Report) , Cytokinetics, Incorporated (CYTK - Free Report) and Sunesis Pharmaceuticals, Inc. . While Cellectis and Cytokinetics sport a Zacks Rank #1 (Strong Buy), Sunesis Pharma carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cellectis’s loss estimates narrowed from $2.33 to $1.80 for 2016 and from $2.94 to $1.69 for 2017 over the last 60 days. The company posted a positive surprise in three of the four trailing quarters with an average beat of 111.20%.
Cytokinetics’ loss estimates narrowed from 12 cents to 3 cents for 2016 and from $1.67 to 42 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 102.93%.
Sunesis’ loss estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 0.54%.
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ImmunoGen Posts Wider-than-Expected Loss; Sales Down Y/Y
ImmunoGen, Inc. reported a loss of 39 cents per share (excluding restructuring charge) in the three month transition period ended Dec 31, marginally wider than both the Zacks Consensus Estimate and the year-ago loss of 38 cents. We note that effective from Jan 1, 2017, ImmunoGen has transitioned to a fiscal year ending Dec 31.
ImmunoGen’s shares declined 2.8% following its earnings release. The company’s stock outperformed the Zacks classified Medical-Drugs industry year to date. The company’s shares gained 18.6% compared with the industry’s increase of 6.9%.
Since ImmunoGen does not have any approved product in its portfolio yet, the company earns revenues through royalties, license and milestone payments, as well as research and development (R&D) support fees paid by its partners.
Revenues decreased 23.3% year over year to $13.8 million and missed the Zacks Consensus Estimate of $19 million in the quarter ended Dec 31, 2016.
R&D expenses decreased 11.8% from the year-ago level to $33.7 million. This was primarily due to lower third-party costs related to activities in the prior-year period. Selling, general and administrative (SG&A) expenses were up 6.3% to $8.5 million due to higher third-party service fees associated with the company's strategic review, partially offset by lower salaries and related expenses and lesser administrative expenses.
During the quarter, the company restructured its operations and reduced its workforce by 17% or 65 positions in technical operations and general and administration functions.
Pipeline Update
ImmunoGen continues to progress with its pipeline. In Jan 2017, the first patient was dosed in a phase III study (FORWARD I) of its lead candidate mirvetuximab soravtansine for the treatment of platinum-resistant ovarian cancer.
Meanwhile, combination regimens with mirvetuximab soravtansine in ovarian cancer are being evaluated in the phase Ib/II FORWARD II study. The company expects to report initial data from FORWARD II study in the second quarter of 2017.
Furthermore, a phase I study on IMGN779 for the treatment of acute myeloid leukemia is currently underway. Initial data from the study should be out in mid-2017. Additionally, the company is planning to file an investigational new drug (IND) application for IMGN632, a CD123-targeting antibody-drug conjugate (ADC) in the third quarter of 2017.
2016 Results (six months ended Dec 31)
ImmunoGen’s sales for the six months ended Dec 31 2016, increased 34.7% year over year to $21.5 million. Sales missed the Zacks Consensus Estimate of $61.8 million.
The company incurred a loss of 85 cents per share in the six months ended Dec 31 2016, which is significantly narrower than Zacks Consensus Estimate of a loss of $1.65. The company had posted earnings of 77 cents per share a year ago.
2017 Outlook
The company expects revenues in the range of $70 million to $75 million, which includes $28 million of expected upfront and milestone fees from partners.
Operating expenses are projected in the range of $175 million and $180 million for 2017.
Cash and marketable securities are expected to be between $35 million and $40 million at Dec 31, 2017. The company expects its current cash and expected cash will enable the company to fund its operations into the second quarter of 2018.
ImmunoGen, Inc. Price, Consensus and EPS Surprise
ImmunoGen, Inc. Price, Consensus and EPS Surprise | ImmunoGen, Inc. Quote
Zacks Rank & Key Picks
ImmunoGen currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector include Cellectis S.A. (CLLS - Free Report) , Cytokinetics, Incorporated (CYTK - Free Report) and Sunesis Pharmaceuticals, Inc. . While Cellectis and Cytokinetics sport a Zacks Rank #1 (Strong Buy), Sunesis Pharma carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cellectis’s loss estimates narrowed from $2.33 to $1.80 for 2016 and from $2.94 to $1.69 for 2017 over the last 60 days. The company posted a positive surprise in three of the four trailing quarters with an average beat of 111.20%.
Cytokinetics’ loss estimates narrowed from 12 cents to 3 cents for 2016 and from $1.67 to 42 cents over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 102.93%.
Sunesis’ loss estimates narrowed from $2.57 to $2.44 for 2016 and from $2.16 to $1.97 for 2017 over the last 60 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 0.54%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>