) reported first quarter fiscal 2014 (ending Sep 30, 2013) loss
of 13 cents per share, narrower than the Zacks Consensus Estimate
of a loss of 22 cents and the year-ago loss of 30 cents per
share. The narrower loss was primarily due to higher revenues and
lower operating costs.
ImmunoGen's revenues in the reported quarter came in at $17.2
million, up from the year-ago figure of $4.1 million. The massive
increase in revenues was primarily due to a jump in license and
milestone fees. Revenues in the first quarter were also above the
Zacks Consensus Estimate of $13 million.
Quarter in Details
ImmunoGen's revenues comprise research and development support
fees, license and milestone fees, royalty revenues and clinical
material reimbursement. The company received $7.8 million of
license and milestone fees during the quarter compared with $0.9
million received in the year-ago quarter.
The first quarter fiscal 2014 license and milestone fees included
$7.8 million of amortization of upfront license fees from
Eli Lilly and Company
) and a $5.0 million milestone from
) for the approval of oncology drug Kadcyla in Japan.
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 (mBC). The
drug is under review in the EU (received positive opinion from
the European Medicines Agency's Committee for Medicinal Products
for Human Use). Kadcyla is also being studied for a number of
The company recorded $2.0 million of research and development
support fees in the first quarter of fiscal 2014 compared with
$1.4 million in the year-ago period. The company also recorded
$2.1 million as royalty revenues during the quarter.
The company's total operating expenses during the quarter
decreased 2.7% to $28.6 million. ImmunoGen reported research and
development (R&D) expenses of $22.0 million during the
quarter, down 7.1% year over year. The decrease in R&D
expenses was primarily due to lower sale of clinical materials to
the company's partners, resulting in lower associated expenses.
General and administrative expenses in the reported quarter were
up 15.7% to $6.5 million due to higher personnel expenses.
Outlook for Fiscal 2014
Apart from releasing its financial results, ImmunoGen adjusted
its guidance for fiscal 2014. The company increased its revenue
guidance for fiscal year 2014 to the range of $71-$75 million
from the previous range of $66-$70 million. The pre-earnings
Zacks Consensus Estimate of $67 million was however well below
the company's guidance.
ImmunoGen lowered its net loss guidance to the range of $67
million to $71 million from the previous range of $72 million to
$76 million. The company meanwhile maintained its operating
expenses guidance in the range of $140 million and $144 million.
The company has multiple pipeline related events in the coming
quarters. We are encouraged by ImmunoGen's recent progress on its
pipeline and expect investor focus to stay on the upcoming
pipeline related events.
ImmunoGen presently carries a Zacks Rank #3 (Hold). Meanwhile,
other stocks such as
) look better positioned with a Zacks Rank #1 (Strong Buy).
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