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Why Is Agenus (AGEN) Down 6.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for Agenus (AGEN - Free Report) . Shares have lost about 6.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Agenus 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.

Agenus Q1 Earnings Beat Estimates, Revenues Miss

Agenus reported first-quarter 2019 earnings of 12 cents per share against the Zacks Consensus Estimate of a loss of 30 cents and the year-ago quarter’s loss of 42 cents.

The company generated revenues of $8.6 million, which includes non-cash royalties, compared with no revenues in the year-ago quarter. Revenues marginally missed the Zacks Consensus Estimate of $9 million.

 Quarterly Highlights

Research and development (R&D) expenses rallied 36.3% to $40.1 million. General and administrative expenses increased 26.8% to $10.2 million.

Pipeline Update

Agenus is a clinical-stage, immuno-oncology company with a comprehensive portfolio, consisting of antibody-based therapeutics, adjuvants and cancer vaccine platforms.

In December 2018, the company inked a collaboration deal with Gilead Sciences Inc. to develop and commercialize up to five immuno-oncology (I-O) therapies. In January 2019, it announced the closing of its I-O partnership deal with Gilead.

Agenus recently received $7.5 million in cash as a milestone payment from Gilead, after the FDA accepted the former's investigational new drug (IND) application for AGEN1423 (Now GS-1423). AGEN1423 is a first-in-class molecule, currently being developed in partnership with Gilead as a potential treatment for cancer. Agenus also received additional milestones of $150 million from Gilead.

The company started first-in-human trial with its next-generation CTLA4.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Agenus has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Agenus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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