AVEO Pharmaceuticals, Inc.
) recently reported second-quarter 2013 loss of 47 cents per
share (excluding one-time expenses), narrower than the year-ago
loss of 68 cents per share. The Zacks Consensus Estimate was
pegged at a loss of 59 cents per share.
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The company's total collaboration revenue for the second quarter
was $0.3 million as compared to $1.9 million in the year-ago
period. Revenue in the second quarter 2012 was boosted by
milestone payments and research funding from partners. The Zacks
Consensus Estimate stood at $1 million for the second quarter of
In the second quarter of 2013, research and development (R&D)
expenses were $16.2 million, down 24.5% year over year. The
decrease in R&D expenses was primarily because of a decrease
in personnel-related expenses. A decrease in number of patients
enrolled in studies involving ficlatuzumab and tivozanib also
contributed to the reduction in R&D costs. General and
administrative expenses decreased 20.3% to $7.3 million,
reflecting lower stock-based compensation expense.
At the end of the second quarter of 2013, the company had cash,
cash equivalents and marketable securities of $156.2 million.
AVEO expects to have cash, cash equivalents and marketable
securities of $115 million at the end of 2013.
In Jun 2013, AVEO received a major setback, when the U.S. Food
and Drug Administration (FDA) issued a Complete Response letter
(CRL) for its oncology candidate, tivozanib. The company was
looking to get the drug approved for the treatment of patients
suffering from advanced renal cell carcinoma (RCC).
The FDA's decision was not surprising given that in May 2013,
FDA's Oncologic Drugs Advisory Committee voted against the
approval of tivozanib. Following the receipt of the CRL, AVEO
decided against pursuing the development of tivozanib for the RCC
The company is evaluating tivozanib for other indications
including colorectal (phase II) and breast cancer (phase II).
AVEO is developing tivozanib in collaboration with
Astellas Pharma, Inc.
AVEO carries a Zacks Rank #3 (Hold). Currently, companies like
Biogen Idec Inc.
) look attractive with a Zacks Rank #1 (Strong Buy).