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Epizyme (EPZM) Reports Narrower Q4 Loss, Pipeline in Focus
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Epizyme, Inc. reported a loss of 60 cents per share in the fourth quarter of 2016, narrower than the Zacks Consensus Estimate of 64 cents but wider than the year-ago loss of 53 cents.
Epizyme’s share price has outperformed the Zacks classified Medical-Biomedical/Genetics industry in the last 12 months. The stock gained 47.5% during this time period compared to the industry’s decline of 0.8%.
Quarter in Detail
The company earned collaboration revenues of $0.5 million in the quarter compared to the year-ago tally of $0.6 million but fell short of the Zacks Consensus Estimate of $0.6 million.
Research and development (R&D) expenses were $28.4 million, up from $16.8 million in the year-ago quarter due to costs associated with the expansion of the tazemetostat program. Likewise, general and administrative expenses were up 26.7% to $7.6 million primarily due to higher compensation-related expenses associated with expansion of the senior leadership team in the first half of 2016 to support operational growth, as well as increased investment in business development activities and tazemetostat-related pre-commercial activities.
2016 Results
Revenues came in at $8.0 million, up from $2.6 million in 2015 but fell short of the Zacks Consensus Estimate of $8.1 million. The increased sales was due to the recognition of the $6.0 million milestone earned upon GlaxoSmithKline plc 's (GSK - Free Report) initiation of patient dosing in a phase I clinical trial of GSK3326595, a PRMT5 inhibitor invented by Epizyme and licensed to Glaxo.
Pipeline Update
Epizyme's lead pipeline candidate, tazemetostat, is currently being evaluated in a phase II study in adults with relapsed or refractory non-Hodgkin lymphoma (NHL) and continues to enroll patients. Efficacy and safety data from the phase II studies on NHL and solid tumor are expected in the first half of 2017. Epizyme expects to file regulatory approval in mid-2017.
Epizyme has initiated a clinical study on tazemetostat in combination with prednisolone in relapsed/refractory patients with diffuse large B cell lymphoma (DLBCL). This combination regimen is being conducted as the sixth cohort to the ongoing phase II NHL study. The company intends to initiate new combination study in patients with follicular lymphoma in 2017.
Epizyme has completed enrollment in three of the five cohorts of its ongoing phase II study of tazemetostat in patients with relapsed/refractory NHL; the two cohorts enrolling patients with DLBCL with wild-type EZH2 and a third enrolling patients with follicular lymphoma with wild-type EZH2.
In Jan 2017, Epizyme opened enrollment to patients with follicular lymphoma in the U.S. as part of its phase II study in NHL as per FDA’s request.
Guidance
Epizyme expects that its cash balance of $242.2 million as of Dec 31, 2016 will be used to fund its planned operations through at least the third quarter of 2018.
Epizyme's narrower-than-expected loss in the fourth quarter was encouraging. With no approved products in its portfolio as of yet, the company relies heavily on its collaborators for revenues. We remain encouraged by the company's efforts to develop its lead candidate tazemetostat for a number of indications.
Zacks Rank & Stocks to Consider
Epizyme currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Celgene Corp. , Heska Corporation and GlaxoSmithKline plc (GSK - Free Report) . While Heska carries a Zacks Rank #1(Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Heska’s earnings estimates increased from $1.53 to $1.65 for 2017 and from $1.90 to $2.01 for 2018, over the last 30 days. The company posted positive earnings surprises in all of the four trailing quarters with an average beat of 291.54%.
Celgene’s earnings estimates increased from $6.52 to $6.60 for 2017 and from $8.15 to $8.16 for 2018, over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 5.08%.
GlaxoSmithKline’s earnings estimates increased from $2.71 to $2.76 for 2017 and from $2.80 to $2.85 for 2018 over the last 30 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 11.03%. Its share price increased 6.7% year to date.
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Epizyme (EPZM) Reports Narrower Q4 Loss, Pipeline in Focus
Epizyme, Inc. reported a loss of 60 cents per share in the fourth quarter of 2016, narrower than the Zacks Consensus Estimate of 64 cents but wider than the year-ago loss of 53 cents.
Epizyme’s share price has outperformed the Zacks classified Medical-Biomedical/Genetics industry in the last 12 months. The stock gained 47.5% during this time period compared to the industry’s decline of 0.8%.
Quarter in Detail
The company earned collaboration revenues of $0.5 million in the quarter compared to the year-ago tally of $0.6 million but fell short of the Zacks Consensus Estimate of $0.6 million.
Research and development (R&D) expenses were $28.4 million, up from $16.8 million in the year-ago quarter due to costs associated with the expansion of the tazemetostat program. Likewise, general and administrative expenses were up 26.7% to $7.6 million primarily due to higher compensation-related expenses associated with expansion of the senior leadership team in the first half of 2016 to support operational growth, as well as increased investment in business development activities and tazemetostat-related pre-commercial activities.
2016 Results
Revenues came in at $8.0 million, up from $2.6 million in 2015 but fell short of the Zacks Consensus Estimate of $8.1 million. The increased sales was due to the recognition of the $6.0 million milestone earned upon GlaxoSmithKline plc 's (GSK - Free Report) initiation of patient dosing in a phase I clinical trial of GSK3326595, a PRMT5 inhibitor invented by Epizyme and licensed to Glaxo.
Pipeline Update
Epizyme's lead pipeline candidate, tazemetostat, is currently being evaluated in a phase II study in adults with relapsed or refractory non-Hodgkin lymphoma (NHL) and continues to enroll patients. Efficacy and safety data from the phase II studies on NHL and solid tumor are expected in the first half of 2017. Epizyme expects to file regulatory approval in mid-2017.
Epizyme has initiated a clinical study on tazemetostat in combination with prednisolone in relapsed/refractory patients with diffuse large B cell lymphoma (DLBCL). This combination regimen is being conducted as the sixth cohort to the ongoing phase II NHL study. The company intends to initiate new combination study in patients with follicular lymphoma in 2017.
Epizyme has completed enrollment in three of the five cohorts of its ongoing phase II study of tazemetostat in patients with relapsed/refractory NHL; the two cohorts enrolling patients with DLBCL with wild-type EZH2 and a third enrolling patients with follicular lymphoma with wild-type EZH2.
In Jan 2017, Epizyme opened enrollment to patients with follicular lymphoma in the U.S. as part of its phase II study in NHL as per FDA’s request.
Guidance
Epizyme expects that its cash balance of $242.2 million as of Dec 31, 2016 will be used to fund its planned operations through at least the third quarter of 2018.
Epizyme, Inc. Price and EPS Surprise
Epizyme, Inc. Price and EPS Surprise | Epizyme, Inc. Quote
Our Take
Epizyme's narrower-than-expected loss in the fourth quarter was encouraging. With no approved products in its portfolio as of yet, the company relies heavily on its collaborators for revenues. We remain encouraged by the company's efforts to develop its lead candidate tazemetostat for a number of indications.
Zacks Rank & Stocks to Consider
Epizyme currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Celgene Corp. , Heska Corporation and GlaxoSmithKline plc (GSK - Free Report) . While Heska carries a Zacks Rank #1(Strong Buy), the other two stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Heska’s earnings estimates increased from $1.53 to $1.65 for 2017 and from $1.90 to $2.01 for 2018, over the last 30 days. The company posted positive earnings surprises in all of the four trailing quarters with an average beat of 291.54%.
Celgene’s earnings estimates increased from $6.52 to $6.60 for 2017 and from $8.15 to $8.16 for 2018, over the last 60 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 5.08%.
GlaxoSmithKline’s earnings estimates increased from $2.71 to $2.76 for 2017 and from $2.80 to $2.85 for 2018 over the last 30 days. The company posted a positive earnings surprise in three of the four trailing quarters with an average beat of 11.03%. Its share price increased 6.7% year to date.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>