ImmunoGen (IMGN) Q1 Earnings and Sales Miss, Shares Down
ImmunoGen, Inc. IMGN reported loss of 17 cents per share for the first quarter of 2020,wider than the Zacks Consensus Estimate of a loss of 15 cents. However, it was narrower than the year-ago loss of 30 cents. The bottom figure includes a restructuring charge of $0.8 million.
Revenues came in at $13.3 million, which also missed the Zacks Consensus Estimate of $29 million. Revenues, however, increased from the year-ago quarter figure of $8.6 million.
ImmunoGen’s shares were down 8.1% on May 1, following the dismal first-quarter results. The company’s stock has lost 26.6% so far this year compared with the industry’s decrease of 13%.
Quarter in Details
During the first quarter, Immunogen reported license and milestone fees of $0.3 million compared with $0.1 million in the year-ago period.
First-quarter revenues included $13 million in non-cash royalty revenues, up 53.1% year over year.
During the quarter, research and development expenses decreased 29.5% from the year-ago level to $27.4 million due to restructuring initiatives, partially offset by higher expenses related to clinical studies. General and administrative expenses decreased 17.8% to $8.9 million in the first quarter of 2020, reflecting restructuring benefits.
ImmunoGen’s cash and cash equivalents increased to $247.3 million at the end of March 2020 compared with $176.2 million at the end of December 2019. The increase was due to addition of net proceeds of $97.7 million from a public offering of the company’s common stock.
Pipeline Update
Following the failure ofevaluate its lead pipeline candidate mirvetuximab soravtansine in late-stage, monotherapy study — FORWARD I — in March 2019, Immunogen had initiated several restructuring initiatives including prioritizing pipeline candidates to focus on most promising programs.
The company is enrolling patients in the confirmatory phase III MIRASOL study, which compared mirvetuximab soravtansine head-to-head with single agent chemotherapy in platinum-resistant ovarian cancer patients with high folate receptor alpha expression.
During the quarter, the company initiated a new pivotal study — SORAYA — to evaluate its lead pipeline candidate, mirvetuximab soravtansine, in platinum-resistant ovarian cancer patients. The company expects the data from this study to form the basis of the candidate’s regulatory filing under accelerated pathway for ovarian cancer. While data from the MIRASOL study will support its continued approval in the inidcation.
The company is also evaluating multiple combination regimens of mirvetuximab soravtansine in a phase Ib FORWARD II study for treating platinum-resistant ovarian cancer. It plans to provide initial data from a combination cohort of the study, evaluating the candidate in combination with Roche’s RHHBY Avastin (bevacizumab) in May. It is also planning to provide updated data from a triple combination cohort of the study, evaluating the candidate in combination with Avastin and carboplatin later this year.
The company also has another promising candidate, IMGN632, in its pipeline. It is being developed in clinical studies as monotherapy or in combination with Celgene’s (now a part of Bristol-Myers) Vidaza or AbbVie ABBV/Roche’s Venclexta for treating acute myeloid leukemia (“AML”). It is also developing IMGN632 monotherapy in early-stage studies in patients with blastic plasmacytoid dendritic cell neoplasm and acute lymphocytic leukemia.
The company plans to file an investigational new drug application to the FDA to initiate clinical study on IMGC936 by the end of this quarter. The company will co-develop the candidate with MacroGenics MGNX.
2020 Guidance Maintained
ImmunoGen maintained its guidance for 2020, provided on the fourth-quarter earnings call. The company expects revenues for the full year to be between $60 million and $65 million. It expects operating expense to be in the range of $165-$170 million. The company expects cash and cash equivalents to be between $170 million and $175 million at 2020 end.
It expects cash resources to be enough to fund its operations through the second half of 2022.
ImmunoGen, Inc. Price, Consensus and EPS Surprise
ImmunoGen, Inc. price-consensus-eps-surprise-chart | ImmunoGen, Inc. Quote
Zacks Rank
Currently, Immunogen is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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