AVEO Pharmaceuticals, Inc.
) reported third-quarter 2013 loss of 47 cents per share
(excluding one-time expenses), narrower than the year-ago loss of
69 cents per share. The narrower year over year loss was
primarily due to lower operating expenses. The Zacks Consensus
Estimate was pegged at a loss of 41 cents per share. Investors
reacted negatively to the news.
The company's total collaboration revenue for the third quarter
was $0.3 million as compared to $1.0 million in the year-ago
period. Revenue in the third quarter 2012 was boosted by
milestone payments and research funding from partners.
In the third quarter of 2013, research and development (R&D)
expenses were $19.4 million, down 8.0% year over year. The
decrease in R&D expenses was primarily because of a decrease
in personnel-related expenses. A decrease in expenses pertaining
to the development of ficlatuzumab and tivozanib also contributed
to the reduction in R&D costs. General and administrative
expenses decreased 52.3% to $4.4 million, reflecting cost
efficiencies post restructuring initiatives.
AVEO in collaboration with its partner,
Astellas Pharma, Inc.
), is developing tivozanib for advanced metastatic colorectal
cancer. The companies completed enrolment in a phase II BATON
study on the candidate earlier this year. Data from the study is
expected to be released in 2014. Tivozanib is also being
developed for patients suffering from locally recurrent or
metastatic triple negative breast cancer. AVEO and Astellas are
evaluating tivozanib for the breast cancer indication in a phase
II study. However, the enrolment process for the study has been
slower than expected.
Meanwhile, AVEO expanded its pipeline by nominating to develop
AV-380 for cachexia.
AVEO carries a Zacks Rank #3 (Hold). Right now, companies with an
attractive Zacks Rank are
AMAG Pharmaceuticals, Inc.
Osiris Therapeutics, Inc.
). Both stocks carry a Zacks Rank #1 (Strong Buy).
AMAG PHARMA INC (AMAG): Free Stock Analysis
AVEO PHARMACEUT (AVEO): Free Stock Analysis
OSIRIS THERAPTC (OSIR): Free Stock Analysis
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