We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AVEO Pharmaceuticals (AVEO) Q1 Loss Narrower Than Expected
Read MoreHide Full Article
AVEO Pharmaceuticals, Inc. reported a first-quarter 2017 loss of 12 cents per share, narrower than the Zacks Consensus Estimate as well as year-ago loss of 13 cents.
Shares of the company fell more than 3% on Thursday. However, AVEO’s share price movement shows that the stock has outperformed the Zacks classified Medical-Biomedical/Genetics industry year to date. In fact, AVEO has gained 8.9% during this period, compared with industry’s gain of 4.7% during this period.
AVEO does not have any approved products in its portfolio. The company’s top line mainly comprises of collaboration revenues, milestone and other payments. Total collaboration revenue in the first quarter was approximately $2.5 million, compared with $1.2 million in the year-ago quarter.
Quarterly Highlights
Research & development expenses were up 33.2% to about $8 million. However, general and administrative expenses decreased 5.4% year over year to $2.3 million.
Pipeline Updates
AVEO announced that it has completed the first dose cohort , and initiation of enrollment in the second and final dose cohort,of the phase I portion of the company’s phase I/II TiNivo study evaluating tivozanib in combination with Bristol-Myers Squibb’s (BMY - Free Report) Opdivo (nivolumab), in advanced RCC.
In Feb 2017, AVEO announced that its pivotal phase III trial, TIVO-3, to compare lead candidate tivozanib to Bayer’s (BAYRY - Free Report) Nexavar in patients with refractory advanced renal cell carcinoma (RCC), has successfully completed the first safety review by Safety Monitoring Committee (SMC).
The company expects to complete enrolment in Jun 2017 ahead of its prior guidance of Aug 2017. A pre-planned futility analysis of the trial is expected around mid 2017, with top-line data expected in the first quarter of 2018.
2017 Guidance
AVEO expects that its present cash resources of $33.4 million will allow the company to fund its planned operations into the second quarter of 2018.
Our Take
The narrower-than-expected loss in the first-quarter 2017 was encouraging. We expect investor focus to remain on TIVO-3 trial for the third-line treatment of patients with refractory RCC. The trial is being conducted to address the overall survival concerns from the TIVO-1 trial.
Moreveover, the concerns were identified by the FDA in the complete response letter issued in Jun 2013. The TIVO-3 trial is also intended to support a request for regulatory approval of tivozanib in the U.S. as a third-line treatment and as a first-line treatment for RCC. However, AVEO is heavily dependent on partnerships for pipeline development. Further, any hiccup in development and regulatory process of lead candidate tivozanib will pull down the stock significantly.
We also believe that securing Novartis AG (NVS - Free Report) as a partner for its cachexia candidate, AV-380, represents a huge positive for AVEO.
AVEO Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AVEO Pharmaceuticals (AVEO) Q1 Loss Narrower Than Expected
AVEO Pharmaceuticals, Inc. reported a first-quarter 2017 loss of 12 cents per share, narrower than the Zacks Consensus Estimate as well as year-ago loss of 13 cents.
Shares of the company fell more than 3% on Thursday. However, AVEO’s share price movement shows that the stock has outperformed the Zacks classified Medical-Biomedical/Genetics industry year to date. In fact, AVEO has gained 8.9% during this period, compared with industry’s gain of 4.7% during this period.
AVEO does not have any approved products in its portfolio. The company’s top line mainly comprises of collaboration revenues, milestone and other payments. Total collaboration revenue in the first quarter was approximately $2.5 million, compared with $1.2 million in the year-ago quarter.
Quarterly Highlights
Research & development expenses were up 33.2% to about $8 million. However, general and administrative expenses decreased 5.4% year over year to $2.3 million.
Pipeline Updates
AVEO announced that it has completed the first dose cohort , and initiation of enrollment in the second and final dose cohort,of the phase I portion of the company’s phase I/II TiNivo study evaluating tivozanib in combination with Bristol-Myers Squibb’s (BMY - Free Report) Opdivo (nivolumab), in advanced RCC.
In Feb 2017, AVEO announced that its pivotal phase III trial, TIVO-3, to compare lead candidate tivozanib to Bayer’s (BAYRY - Free Report) Nexavar in patients with refractory advanced renal cell carcinoma (RCC), has successfully completed the first safety review by Safety Monitoring Committee (SMC).
The company expects to complete enrolment in Jun 2017 ahead of its prior guidance of Aug 2017. A pre-planned futility analysis of the trial is expected around mid 2017, with top-line data expected in the first quarter of 2018.
2017 Guidance
AVEO expects that its present cash resources of $33.4 million will allow the company to fund its planned operations into the second quarter of 2018.
Our Take
The narrower-than-expected loss in the first-quarter 2017 was encouraging. We expect investor focus to remain on TIVO-3 trial for the third-line treatment of patients with refractory RCC. The trial is being conducted to address the overall survival concerns from the TIVO-1 trial.
Moreveover, the concerns were identified by the FDA in the complete response letter issued in Jun 2013. The TIVO-3 trial is also intended to support a request for regulatory approval of tivozanib in the U.S. as a third-line treatment and as a first-line treatment for RCC. However, AVEO is heavily dependent on partnerships for pipeline development. Further, any hiccup in development and regulatory process of lead candidate tivozanib will pull down the stock significantly.
We also believe that securing Novartis AG (NVS - Free Report) as a partner for its cachexia candidate, AV-380, represents a huge positive for AVEO.
AVEO Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
AVEO Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | AVEO Pharmaceuticals, Inc. Quote
Zacks Rank & Stock to Consider
AVEO is a Zacks Rank #4 (Sell) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 >>