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Infinity (INFI) Q1 Earnings Lag Estimates, IPI-549 in Focus

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Infinity Pharmaceuticals, Inc. (INFI - Free Report) incurred a loss of 19 cents per share in the first quarter of 2020, wider than the Zacks Consensus Estimate of a loss of 9 cents but narrower than the year-ago quarter’s loss of 24 cents.

Also, the company’s royalty revenues of $0.42 million beat the Zacks Consensus Estimate of $0.25 million. In the year-ago quarter, the company recorded royalty revenues of $0.12 million.

Shares of Infinity have increased 5.2% year to date versus the industry’s decline of 10.8%.


Quarter in Detail

Research and development expenses escalated 25.8% year over year to $7.3 million in the reported quarter, mainly due to an increase in clinical and development activities for IPI-549.

General and administrative expenses were $3.3 million in the reported quarter, down 2.9% year over year.

As of Mar 31, 2020, Infinity had total cash and cash equivalents of $50.3 million compared with $42.4 million at the end of Dec 31, 2019. The company expects its existing cash, cash equivalents and available-for-sale securities to be adequate for satisfying its capital needs through the second half of 2021.

Pipeline Update

Infinity is currently focused on developing its lead immuno-oncology candidate, IPI-549.

In March 2020, the FDA granted a Fast Track designation to the combo of IPI-549 plus Bristol Myers’ (BMY - Free Report) PD-1 immune checkpoint inhibitor, Opdivo (nivolumab), for the treatment of advanced urothelial cancer, a type of bladder cancer.

Notably, during the fourth quarter of 2019, the company initiated MARIO-275, an ongoing, global, randomized, controlled phase II study in collaboration with Bristol-Myers Squibb, to evaluate IPI-549 in combination with the latter’s Opdivo in platinum-refractory, I/O-naive patients with advanced urothelial cancer. Infinity is currently enrolling patients in the study.

The company continues to review this data with the IDMC and plans to carry on treating patients who are being evaluated in the study with modifications including additional patient monitoring and a dose reduction. The company is voluntarily pausing enrollment and amending the protocol to ensure patient safety, evaluating the potential benefit of IPI-549 plus Opdivo.

Also, in September 2019, Infinity initiated a phase II MARIO-3 study in collaboration with Roche AG (RHHBY - Free Report) , evaluating IPI-549 in combination with Tecentriq and Abraxane (nab-paclitaxel) for the treatment of front-line triple negative breast cancer (TNBC). The above-mentioned study also includes a cohort evaluating IPI-549 in combination with Tecentriq and Avastin (bevacizumab) for front-line PDL1+ and PDL1-renal cell cancer (RCC) patients.

Per the earnings release, Infinity is experiencing delays in enrollment and site initiation for the MARIO-3 study and is voluntarily pausing enrollment in the MARIO-275 study to ensure patient safety.

Meanwhile, Infinity in coordination with Arcus Biosciences (RCUS - Free Report) is conducting an early-stage study to evaluate IPI-549 in combination with AB298, the latter's dual adenosine receptor antagonist, and Doxil, a chemotherapy, for treating patients with advanced TNBC.

2020 Outlook

The company expects full-year net loss in the range of $40-$50 million, unchanged from its previous expectation.

Infinity Pharmaceuticals Inc Price, Consensus and EPS Surprise

Zacks Rank

Infinity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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