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Infinity Pharmaceuticals (INFI) Down 6.7% Since Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Infinity Pharmaceuticals, Inc. (INFI - Free Report) . Shares have lost about 6.7% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is INFI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Infinity Incurs In-Line Loss in Q1, Maintains View

Infinity reported a loss of 18 cents per share in first-quarter 2018, in line with the Zacks Consensus Estimate. The company had reported a loss of 21 cents in the year-ago quarter.

Since Infinity does not have any approved product in its portfolio, the company earns revenues in the form of royalties, license and milestone payments as well as research and development (R&D) support fees paid by its partners.

Quarter in Detail

In the quarter, R&D expenses increased 38.8% to $5.9 million due to higher clinical development charges for IPI-549.

General and administrative (G&A) expenses were $3.6 million for the quarter, down 43.8% from the year-ago quarter. The decrease was mainly due to a reduction in bonus and stock compensation.

2018 Outlook

Infinity reaffirmed its outlook for 2018. The company expects net loss for 2018 to be in the range of $35-$45 million. The company anticipates year-end cash and cash equivalents and available-for-sale securities balance in the $15-$25 million range. Moreover, Infinity expects that its existing cash, cash equivalents and available-for-sale securities as of Dec 31, 2017 should be adequate to fund the company's capital needs through third-quarter 2019.

Other Updates

Infinity is evaluating IPI-549 as a monotherapy and in combination with Bristol-Myers’ Opdivo in a phase I study in patients with advanced solid tumors.

The phase I/Ib monotherapy and combination dose escalation components of the study have been completed.  Enrollment, which began in 2018, is ongoing for six disease-specific combination expansion cohorts, along with a seventh combination expansion cohort of patients pre-selected for having high baseline blood levels of myeloid derived suppressor cells (MDSCs).

The company expects to report data from the monotherapy expansion component and combination dose-escalation component of the study in 2018. The company also expects to report initial data from six disease-specific combination expansion cohorts in 2018. 

Further, the company expects to report more mature clinical and translational data (including insights from paired tumor biopsies) from the six disease-specific cohorts and initial data from the cohort of patients pre-selected for having high baseline blood levels of MDSC in the combination expansion component of the study in the second half of 2018.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

Infinity Pharmaceuticals, Inc. Price and Consensus

VGM Scores

At this time, INFI has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for growth based on our styles scores.

Outlook

INFI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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