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TrovaGene (TROV) Reports Wider-than-Expected Loss in Q4
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Headquartered in San Diego, CA, TrovaGene Inc. , a developer of circulating tumor DNA (ctDNA) molecular diagnostics, reported loss of 31 cents per share in the fourth quarter of 2016, 2 cents wider than the Zacks Consensus Estimate. Also, the loss was wider than the year-ago loss of 27 cents.
The wider loss was a result of an increased operating expense of $9.9 million from $7.5 million in the year-ago quarter. The increase was chiefly a result of perked up research & development (R&D) as well as clinical & commercial activities.
In the quarter, R&D expenses were on the higher side, thanks to increased spending on the second generation urine collection, DNA preservation and the development of multi-gene panels. In fact, for the coming quarters, management predicts global distribution and a broader adoption of these platforms.
Meanwhile, revenues came in at $68 thousand compared with $79 thousand in the year-ago quarter, reflecting growing traction of the Trovera and Precision Cancer Monitoring (PCM) technologies.
Stock Performance
The price performance of the stock has been unfavorable over the last three months. TrovaGene shrunk by 19.05% while the Zacks classified Medical-Biomed/Genetics sub-industry gained almost 8.23%. License Agreement
On Wednesday, TrovaGene also signed a license agreement with leading oncology discovery organization, Nerviano Medical Sciences, S.r.l. The agreement granted Trovagene exclusive global development and commercialization rights to NMS-1286937, which Trovagene refers to as PCM-075.
Notably, PCM-075 is an oral, investigative drug and a highly selective adenosine triphosphate (ATP) competitive inhibitor of the serine/threonine polo-like-kinase 1 (PLK 1). Nerviano will receive an upfront payment of $2.0 million, as well as development and regulatory-based milestone payments and royalty payments on future net sales of PCM-075.
Restructuring Plan
Trovagene announced a restructuring program that will support its expansion into precision cancer therapeutics. Per management, the restructuring program will reduce annual pre-tax expenses by approximately $8.0 million per year (excluding one-time separation costs). This would be done through the reduction of approximately 30 personnel and expenses primarily linked to research, clinical studies and operations. Trovagene will maintain its CLIA/CAP-accredited laboratory for clinical services to pharmaceutical companies and for internal programs.
Financial Condition
Cash and cash equivalents were $13.9 million as of Dec 31, 2016 against $67.5 million as of Dec 31, 2015. Net cash used in operating activities for the fourth quarter of 2016 was $9.0 million compared with $7.0 million in the third quarter of 2016. The increase can be attributed primarily to higher research and development cost associated with the development of a multigene panel and a payment to Boreal Genomics.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock has an impressive one-year return of 58.7%.
Cogentix Medical posted a positive earnings surprise of 100% in the last reported quarter. Additionally, the company registered a promising one-year return of almost 80.2%.
Penumbra has a long-term expected earnings growth rate of approximately 20%. Notably, the stock has an impressive one-year return of almost 23%.
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TrovaGene (TROV) Reports Wider-than-Expected Loss in Q4
Headquartered in San Diego, CA, TrovaGene Inc. , a developer of circulating tumor DNA (ctDNA) molecular diagnostics, reported loss of 31 cents per share in the fourth quarter of 2016, 2 cents wider than the Zacks Consensus Estimate. Also, the loss was wider than the year-ago loss of 27 cents.
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The wider loss was a result of an increased operating expense of $9.9 million from $7.5 million in the year-ago quarter. The increase was chiefly a result of perked up research & development (R&D) as well as clinical & commercial activities.
In the quarter, R&D expenses were on the higher side, thanks to increased spending on the second generation urine collection, DNA preservation and the development of multi-gene panels. In fact, for the coming quarters, management predicts global distribution and a broader adoption of these platforms.
Meanwhile, revenues came in at $68 thousand compared with $79 thousand in the year-ago quarter, reflecting growing traction of the Trovera and Precision Cancer Monitoring (PCM) technologies.
Stock Performance
The price performance of the stock has been unfavorable over the last three months. TrovaGene shrunk by 19.05% while the Zacks classified Medical-Biomed/Genetics sub-industry gained almost 8.23%.
License Agreement
On Wednesday, TrovaGene also signed a license agreement with leading oncology discovery organization, Nerviano Medical Sciences, S.r.l. The agreement granted Trovagene exclusive global development and commercialization rights to NMS-1286937, which Trovagene refers to as PCM-075.
Notably, PCM-075 is an oral, investigative drug and a highly selective adenosine triphosphate (ATP) competitive inhibitor of the serine/threonine polo-like-kinase 1 (PLK 1). Nerviano will receive an upfront payment of $2.0 million, as well as development and regulatory-based milestone payments and royalty payments on future net sales of PCM-075.
Restructuring Plan
Trovagene announced a restructuring program that will support its expansion into precision cancer therapeutics. Per management, the restructuring program will reduce annual pre-tax expenses by approximately $8.0 million per year (excluding one-time separation costs). This would be done through the reduction of approximately 30 personnel and expenses primarily linked to research, clinical studies and operations. Trovagene will maintain its CLIA/CAP-accredited laboratory for clinical services to pharmaceutical companies and for internal programs.
Financial Condition
Cash and cash equivalents were $13.9 million as of Dec 31, 2016 against $67.5 million as of Dec 31, 2015. Net cash used in operating activities for the fourth quarter of 2016 was $9.0 million compared with $7.0 million in the third quarter of 2016. The increase can be attributed primarily to higher research and development cost associated with the development of a multigene panel and a payment to Boreal Genomics.
TrovaGene, Inc. Price, Consensus and EPS Surprise
TrovaGene, Inc. Price, Consensus and EPS Surprise | TrovaGene, Inc. Quote
Zacks Rank & Other Stocks to Consider
Currently, TrovaGene has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , Cogentix Medical, Inc. (CGNT - Free Report) and Penumbra Inc. (PEN - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock has an impressive one-year return of 58.7%.
Cogentix Medical posted a positive earnings surprise of 100% in the last reported quarter. Additionally, the company registered a promising one-year return of almost 80.2%.
Penumbra has a long-term expected earnings growth rate of approximately 20%. Notably, the stock has an impressive one-year return of almost 23%.
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 >>