OncoGenex Pharmaceuticals, Inc. reported fourth quarter 2012 net loss per share of 39 cents, narrower than the Zacks Consensus Estimate of a loss of 49 cents and the year-ago loss of 98 cents per share.
Fourth quarter revenues were $9.8 million, compared with $1.2 million in the year-ago quarter. Revenues surpassed the Zacks Consensus Estimate of $7 million. Revenues comprised solely of collaboration revenues.
Full-year 2012 net loss per share was $1.68, narrower than the Zacks Consensus Estimate of a loss of $1.81 but wider than the year-ago loss of $1.51 per share. Revenues in 2012 were $20.1 million, compared with $5.5 million in 2011. Revenues for 2012 surpassed the Zacks Consensus Estimate of $18 million.
The increase in revenues was driven by the strategic collaboration with Teva Pharmaceutical Industries Ltd. (TEVA - Free Report) for the development and commercialization of oncology candidate, custirsen.
2012 revenues included the recognition of $18.3 million from the $30.0 million upfront payment, as well as $1.8 million earned through collaborative research.
In 2012, Research and Development expenses increased 85.3% year over year to $39.9 million. General and Administrative expenses grew 25.1% year over year to $7.8 million in 2012.
Custirsen, OncoGenex’s most advance pipeline canddite, is currently in the phase III AFFINITY study, which is being conducted to evaluate the overall survival benefit of custirsen plus Sanofi’s (SNY - Free Report) Jevtana (cabazitaxel) as second-line chemotherapy.
Custirsen is in another phase III study – ENSPIRIT – which is being conducted in patients with advanced or metastatic non-small cell lung cancer (NSCLC). The study will evaluate the potential survival benefit of custirsen plus Sanofi’s Taxotere (docetaxel) as second-line chemotherapy.
OncoGenex said that patient enrollment for the phase III SYNERGY study has been completed. The study is designed to evaluate the survival benefit for custirsen, in combination with first-line Taxotere chemotherapy, in men with metastatic castrate-resistant prostate cancer (CRPC). Results are expected in the first half of 2013.
Meanwhile, OncoGenex is looking to move its oncology candidate, OGX-427, into a phase II study, Borealis-2, for the treatment of advanced or metastatic bladder cancer.
The company expects to start enrolling patients for this study in the first half of 2013. This study will evaluate OGX-427 plus Taxotere in improving survival compared to Taxotere alone.
OGX-427 is currently in another study, Borealis-1, which is evaluating the survival benefit, safety and tolerability of combining OGX-427 with gemcitabine and cisplatin in the first-line treatment of patients with advanced bladder cancer. OncoGenex expects to complete patient enrolment in the second half of 2013.
Cash, cash equivalents and investments are expected in the range of $25–$35 million as on Dec 31, 2013.
Net cash requirements are expected in the range of $40–$50 million for the year.
OncoGenex, Sanofi and Teva currently carry a Zacks Rank #3 (Hold). Right now, Lannett Company, Inc. (LCI - Free Report) looks more attractive with a Zacks Rank #1 (Strong Buy).