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ImmunoGen (IMGN) Misses on Earnings & Revenues in Q1

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ImmunoGen, Inc.  reported adjusted loss of 30 cents per share for the first quarter of 2019, wider than the Zacks Consensus Estimate of a loss of 28 cents. The bottom line remained flat year over year.

ImmunoGen’s shares have significantly underperformed the industry so far this year. The stock has declined 40% against the industry’s increase of 11%.

Revenues

Since ImmunoGen has no approved product in its portfolio, the company earns revenues through royalties, license and milestone payments plus research and development (R&D) support fees paid by its partners.

Revenues came in at $8.6 million in the quarter, missing the Zacks Consensus Estimate of $10.82 million. Revenues declined from the year-ago quarter figure of $19.8 million as the first quarter of 2018 included $11.5 million in upfront and milestone payments. Revenues in the first quarter of 2019 included $9.7 million in non-cash royalty revenues. Revenues from R&D support and clinical materials were $0.4 million and $0.7 million, respectively.

Operating Expenses & Cash Details

Research and development expenses decreased almost 13.2% from the year-ago level to $38.9 million due to lower costs related to clinical development of its lead pipeline candidate, mirvetuximab soravtansine. General and administrative (G&A) expenses were up 8% to $10.8 million in the first quarter of 2019.

ImmunoGen’s cash and cash equivalents decreased to $270.4 million at the end of March 2019 compared with $262.3 million at the end of December 2018.

Pipeline Update

In March, ImmunoGen faced a major setback as mirvetuximab soravtansine failed in the late-stage FORWARD I study. Data showed that treatment with the candidate did not achieve significant improvement in progression free survival (PFS) in the overall patient population as well FR-alpha high patient subset.

Following the disappointing news, the company is analyzing data from the study for consistent efficacy signal across a range of parameters in the pre-specified subset of ovarian cancer patients with high folate receptor alpha expression. The company plans to meet the FDA in the second quarter of 2019 to discuss the potential of registration for the candidateas a monotherapy.

ImmunoGen is currently enrolling patients in the phase Ib/II FORWARD II study evaluating combination regimens with mirvetuximab soravtansine in ovarian cancer. The company has initiated enrollment in a study arm, which is evaluating the candidate in combination with Roche’s (RHHBY - Free Report) Avastin for recurrent platinum-resistant ovarian cancer in patients eligible for non-platinum-based regimen.

Previously, data showed that the candidate in combination with Merck’s (MRK - Free Report) Keytruda achieved encouraging anti-tumor activity, especially in patients with medium or high FRα expression levels.

Apart from mirvetuximab soravtansine, ImmunoGen is working to develop a couple of other candidates in early-stage studies including IMGN779 (relapsed or refractory adult acute myeloid leukemia) and IMGN632 (hematological malignancies including acute myeloid

ImmunoGen, Inc. Price, Consensus and EPS Surprise

 

ImmunoGen, Inc. Price, Consensus and EPS Surprise | ImmunoGen, Inc. Quote

Zacks Rank & Key Pick

ImmunoGen currently carries a Zacks Rank #2 (Buy).

Editas Medicine, Inc. (EDIT - Free Report) is another stock to consider from the pharmaceutical sector carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Editas’ loss estimates have narrowed from $2.74 to $2.68 for 2019 and from $3.05 to $3.01 for 2020 over the past 60 days.

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