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Wider-than-Expected Loss at ChemoCentryx
ChemoCentryx, Inc. ( CCXI - Snapshot Report) reported net loss of 28 cents per share in the first quarter of 2013, wider than the Zacks Consensus Estimate of a loss of 27 cents but in line with the year-ago loss.
Revenues increased 89.3% to $1.9 million, slightly below the Zacks Consensus Estimate of $2 million. Revenues primarily consisted of collaborative research and development revenue from related party.
Operating expenses increased 29% during the quarter to $12.2 million. Research and development expenses increased 34% to $9.3 million. The increase was primarily attributable to the advancement of pipeline candidates. General and administrative expenses increased 15.7% to $3.0 million. Pipeline Updates
The company’s pipeline includes vercirnon for Crohn’s disease and CCX140 for diabetic kidney disease. Vercirnon, the company’s most advanced candidate is being developed in collaboration with GlaxoSmithKline ( GSK - Analyst Report) . Top-line data from the SHIELD-1 phase III trial evaluating vercirnon for Crohn's disease is expected to be released in the second half of 2013. Additionally, interim results from a phase II study assessing CCX140 for diabetic nephropathy is expected in third quarter 2013.
We note that last month, ChemoCentryx completed its follow-on offer of 5.75 million shares at $12.00 per share. After adjusting for underwriter discounts, commissions and offering costs, the net proceeds to the company from the offering were approximately $64.4 million. The company plans to utilize the fund for accelerating CCX140 development and renal franchise expansion.
ChemoCentryx currently carries a Zacks Rank #3 (Hold). Stocks that look better and hold a Zacks Rank #2 include Onyx Pharmaceuticals, Inc. and WuXi PharmaTech (Cayman) Inc. .