) reported second quarter fiscal 2013 adjusted loss of 29 cents
per share, wider than both the Zacks Consensus Estimate of a loss
of 24 cents and the year-ago loss of 17 cents per share. The
year-over-year miss was primarily due to lower revenues and
ImmunoGen's revenues in the reported quarter came in at $2.6
million, compared with $7.6 million in the second quarter of
fiscal 2012. The huge difference in revenues was primarily due to
the presence of $5.0 million milestone payments in the year-ago
quarter. Revenues in the second quarter were much lower than the
Zacks Consensus Estimate of $6 million.
Quarter in Details
ImmunoGen's revenues comprise of research and development
support fees, license and milestone fees and clinical material
reimbursement. The company recorded $2.0 million of research and
development support fees in the second quarter of fiscal 2013
compared with $0.9 million in the year-ago period.
ImmunoGen received $0.4 million of license and milestone fees
and $0.1 million of clinical material reimbursement during the
quarter in comparison to a respective $6.0 million and $0.6
million in the same period last year.
The company's total operating expenses during the quarter
increased 33% to $27.1 million. ImmunoGen reported research and
development (R&D) expenses of $21.7 million during the
quarter, up 39.2% year over year. The increase in R&D
expenses during the quarter was primarily due to higher expenses
related to pipeline development.
General and administrative expenses in the second quarter of
fiscal 2013 came in at $5.5 million, up 13% year over year due to
higher patent related expenses and recruitment costs.
ImmunoGen's metastatic breast cancer candidate, trastuzumab
emtansine (T-DM1) is currently under review both in the US and
the EU. The candidate is being developed for the treatment of
patients suffering from HER2+, unresectable locally advanced or
metastatic breast cancer who have received prior treatment with
) Herceptin (trastuzumab) and a taxane. A final decision from the
US Food and Drug Administration (FDA) regarding the approval of
the candidate should be out by Feb 26, 2013.
The company also expects to report clinical findings on three
of its wholly owned compounds - IMGN901 (small-cell lung cancer,
multiple myeloma), IMGN853 (ovarian and non-small cell lung
cancers) and IMGN529 (non-Hodgkin's lymphoma).
ImmunoGen also has plans to advance its EGFR-overexpressing
solid tumors candidate, IMGN289, into clinical trials. The
company expects to submit an Investigational New Drug (IND)
application for the candidate in mid-2013.
Outlook for Fiscal 2013
Apart from releasing its financial results, ImmunoGen
announced its guidance for fiscal 2013. The company expects net
loss of $70-$74 million for the fiscal year ending Jun 30, 2013.
ImmunoGen expects to exit fiscal year 2013 with cash and cash
equivalents of $172-$176 million.
We expect investor focus to stay on the FDA's decision
regarding the approval of T-DM1 in Feb this year. ImmunoGen
currently carries a Zacks Rank #3 (Hold). However, other pharma
stocks such as
Warner Chilcott plc
) carry a Zacks Rank #1 (Strong Buy).
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