) reported fourth quarter fiscal 2014 (ending Jun 30, 2014) loss of
31 cents per share. The company's loss was narrower than the Zacks
Consensus Estimate of a loss of 36 cents but wider than the
year-ago loss of 26 cents per share. Results in the reported
quarter were affected by higher expenses.
Immunogen, Inc - Earnings Surprise |
ImmunoGen's revenues in fourth quarter fiscal 2014 increased 49.9%
year over year to $5.7 million. The increase in revenues in the
quarter was primarily due to higher royalty revenues. Revenues in
the reported quarter were however well below the Zacks Consensus
Estimate of $11 million.
ImmunoGen reported fiscal 2014 (ending Jun 30, 2014) loss of 68
cents per share, excluding a non-cash expense related to the
company's collaboration with CytomX. The company's loss was
narrower than the year-ago loss of 87 cents and the Zacks Consensus
Estimate of a loss of 85 cents. ImmunoGen's loss in the fiscal year
including the non-cash expense was 83 cents. ImmunoGen's revenues
in fiscal 2014 increased 68.6% year over year to $59.9 million, but
were well below the Zacks Consensus Estimate of $72 million.
Quarter in Detail
ImmunoGen's revenues comprise research and development support
fees, license and milestone fees, royalty revenues and clinical
material revenues. The company received $0.3 million of license and
milestone fees during the quarter compared with $0.9 million
received in the year-ago quarter.
We note that ImmunoGen receives and recognizes royalties on Kadcyla
sales under an agreement with Roche (
). The drug was approved in the U.S. in Feb 2013 for the treatment
of patients suffering from HER2-positive metastatic breast cancer.
In Nov 2013, the drug was approved in the EU for the same
indication. The company recorded $3.4 million of royalty payments
from Roche during the fiscal fourth quarter for sales of Kadcyla in
the first quarter of calendar year 2014. Kadcyla is being developed
for other indications as well.
ImmunoGen's research and development support fees in the fourth
quarter of fiscal 2014 were down 39.8% to $1.3 million. The company
also recorded $0.7 million of clinical materials revenue during the
quarter compared with $0.2 million in the year-ago quarter.
Total operating expenses increased 25.1% to $32.2 million.
ImmunoGen reported research and development (R&D) expenses of
$25.8 million during the quarter, up 26.4% year over year. General
and administrative expenses in the reported quarter increased 20.1%
to $6.5 million.
Fiscal 2015 Outlook
Apart from releasing its financial results, ImmunoGen also provided
a fiscal 2015 guidance. The company expects fiscal 2015 total
revenues in the range of $100 million to $105 million. The Zacks
Consensus Estimate of $104 million is on the higher end of the
ImmunoGen expects net loss in the $60 million to $65 million band.
The company's net loss for fiscal 2014 came in at $71.4 million.
The company expects fiscal 2015 operating expenses in the range of
$160 million to $165 million, a rise from $131.4 million incurred
in fiscal 2014.
ImmunoGen's fourth quarter fiscal 2014 results were encouraging. We
are also encouraged by ImmunoGen's alliances with big companies
like Roche and Sanofi (
). Last month, the company received a $3 million milestone payment
from Sanofi, relating to pipeline advancement. Moreover, the
company has multiple pipeline related events in the coming
quarters. We expect investor focus to remain on these events.
ImmunoGen presently carries a Zacks Rank #3 (Hold). Some
better-ranked stocks include Zacks Ranked #1 (Strong Buy) Actelion
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