ImmunoGen Inc. ( IMGN ) reported third
quarter fiscal 2013 (ending Mar 31) loss of 2 cents per share,
narrower than the Zacks Consensus Estimate of a loss of 14 cents
and the year-ago loss of 24 cents per share. The narrower loss was
primarily due to higher revenues.
ImmunoGen's revenues in the reported quarter came in at $25
million, compared with $3.3 million in the third quarter of fiscal
2012. The massive jump in revenues was primarily due to the
presence of a $10.5 million milestone payment from Roche
Holding ( RHHBY ) during the
quarter along with an $11 million amortization of upfront license
fees from Novartis ( NVS ). Revenues in the
third quarter were ahead of the Zacks Consensus Estimate of $13
Quarter in Details
ImmunoGen's revenues comprise of research and development
support fees, license and milestone fees and clinical material
reimbursement. The company recorded $2.3 million of research and
development support fees in the third quarter of fiscal 2013
compared with $1.3 million in the year-ago period.
ImmunoGen received $22 million of license and milestone fees
during the quarter compared with $1 million received in the
year-ago quarter. The company received $10.5 million as milestone
payment from Roche for the approval of Kadcyla in the US. In Feb
2013, the US Food and Drug Administration (FDA) approved Kadcyla
(ado-trastuzumab emtansine or T-DM1) for the treatment of patients
suffering from HER2-positive metastatic breast cancer (mBC).
ImmunoGen has partnered with Roche for Kadcyla.
The drug is also under review in the EU and Japan. Kadcyla is
also being studied for a number of additional indications.
ImmunoGen recorded $0.7 million of clinical material
reimbursement during the quarter in comparison to $0.9 million in
the same period last year.
The company's total operating expenses during the quarter
increased 19.9% to $26.3 million. ImmunoGen reported research and
development (R&D) expenses of $21.3 million during the quarter,
up 25.9% year over year. The increase in R&D expenses was
primarily due to higher expenses related to pipeline
General and administrative expenses in the third quarter of
fiscal 2013 remained flat at $5 million.
The company's three wholly owned clinical-stage compounds
include IMGN901, IMGN853 and IMGN529.
IMGN901 is currently in phase II development for the first-line
treatment of small-cell lung cancer (SCLC). The company expects
data from the study in mid-2014. IMGN901 is also being developed
for the treatment of multiple myeloma.
Moreover, ImmunoGen is developing IMGN853 in a phase I study for
the treatment of ovarian cancer, with initial data expected in
mid-2013. Another candidate, IMGN529 is also being developed in a
phase I study for the treatment of non-Hodgkin's lymphoma. The
company expects data from the study by year end.
Outlook for Fiscal 2013
Apart from releasing its financial results, ImmunoGen revised
its guidance for fiscal 2013. The company now expects net loss for
fiscal year 2013 in the range of $76-$80 million, up from the
previous range of $70-$74 million.
We are positive on the FDA approval of Kadcyla since the breast
cancer market represents significant commercial potential. We are
also impressed by the company's efforts to develop its
ImmunoGen, a biotech stock, presently carries a Zacks Rank #2
(Buy). Comparatively, other biotech stocks such as WuXi
PharmaTech ( WX ) look better
positioned. WuXi Pharma currently carries a Zacks Rank #1 (Strong
Buy).IMMUNOGEN INC (IMGN): Free Stock Analysis
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