Narrower-than-Expected Loss at ImmunoGen - Analyst Blog
) reported fourth quarter fiscal 2013 (ending Jun 30) loss of 26
cents per share, narrower than the Zacks Consensus Estimate of a
loss of 30 cents and the year-ago loss of 29 cents per share. The
narrower loss was primarily due to higher revenues.
ImmunoGen's revenues in the reported quarter came in at $3.8 million, up 29.8% year over year. The increase in revenues was primarily due to higher research and development support fees. Revenues in the fourth quarter were however below the Zacks Consensus Estimate of $4 million.
Quarter in Details
ImmunoGen's revenues comprise research and development support fees, license and milestone fees and clinical material reimbursement. The company recorded $2.2 million of research and development support fees in the fourth quarter of fiscal 2013 compared with $1.2 million in the year-ago period.
ImmunoGen received $0.9 million of license and milestone fees during the quarter compared with $1 million received in the year-ago quarter. The company recorded $0.2 million of clinical material reimbursement during the quarter in comparison to $0.8 million in the same period last year.
Meanwhile, the company's total operating expenses during the quarter increased 2% to $25.8 million. ImmunoGen reported research and development (R&D) expenses of $20.4 million during the quarter, up 4.4% year over year. The increase in R&D expenses was primarily due to higher expenses related to pipeline development. We are impressed by the company's efforts to develop its pipeline.
General and administrative expenses in the fourth quarter of fiscal 2013 declined 3.2% to $5.4 million.
ImmunoGen Inc. reported full year fiscal 2013 (ending Jun 30) loss of 87 cents per share, narrower than the Zacks Consensus Estimate of a loss of 90 cents and the year-ago loss of 95 cents per share.
ImmunoGen's revenues in fiscal 2013 came in at $35.5 million, up 117.2% year over year. The massive increase in revenues was primarily due to the presence of a $10.5 million milestone payment from Roche Holding ( RHHBY ) for the approval of Kadcyla in the U.S. during the year along with an $11 million amortization of upfront license fees from Novartis ( NVS ). Revenues were just shy of the Zacks Consensus Estimate of $36 million.
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 also under review in the EU and Japan. Kadcyla is also being studied for a number of additional indications.
Outlook for Fiscal 2014
Apart from releasing its financial results, ImmunoGen provided its guidance for fiscal 2014. The company expects revenues for fiscal year 2014 in the range of $66-$70 million. The pre-earnings Zacks Consensus Estimate of $51 million was however well below the company's guidance. ImmunoGen expects net loss in the range of $72 to $76 million in fiscal year 2014. The company meanwhile expects its expenses to be between $140 million and $144 million.
ImmunoGen presently carries a Zacks Rank #3 (Hold). Meanwhile, other stocks such as Actelion Ltd. ( ALIOF ) look better positioned with a Zacks Rank #1 (Strong Buy).
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