Aduro Biotech, Inc . ADRO incurred first-quarter 2018 loss of 31 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents but wider than the year-ago loss of 27 cents.
Revenues came in at $2.6 million, down 56% year over year due to lower reimbursement from partner Novartis NVS following the adoption of the ASC 606 accounting standard on Jan 1, 2018. The top line also missed the Zacks Consensus Estimate of $4.3 million.
The decrease in collaboration and license revenues for the second quarter was primarily due to recognition of milestone payments from Merck MRK in the year-ago period. The milestone payment was paid for initiation of a phase I study, evaluating Aduros anti-CD27 antibody in combination with Merck's Keytruda (pembrolizumab) for treatment of adults with advanced solid tumors.
Shares of Aduro increased more than 6% on Aug 1 in after-hours trading post its earnings release. However, the stock has decreased 23.3% so far this year, wider than the industry's decline of 2.8%.
Quarter in Detail
Research and development expenses declined 9.3% in the reported quarter to $19.4 million due to lower expenses related to the company's pipeline candidates, namely ADU-1604 and BION-1301. These are currently under development for treating adults with relapsed or refractory multiple myeloma. Additionally, the termination CRS-207 also lowered the development expenses.
General and administrative expenses were $8.8 million, down 7.3% year over year, primarily on higher stock-based compensation expense and legal fees.
Aduro has a broad pipeline of novel immunotherapies, developed for treating a variety of cancers.
The company presented data at the American Association for Cancer Research Annual Meeting (AACR) from its STING pathway activator, ADU-S100, developed in combination with Novartis AG's (NVS) PD-1 checkpoint inhibitor, PDR001, in a phase Ib trial for treating solid tumors and lymphomas.
Additionally, the candidate is being evaluated in a phase I trial as a monotherapy on patients with cutaneous accessible metastatic solid tumors or lymphomas. Top-line data from the program is expected soon.
In June, Aduro announced the initiation of a phase Ib study of ADU-214 (JNJ-64041757) in combination with Opdivo (nivolumab) for the treatment of advanced lung cancer. ADU-214 is an immunotherapy based on Aduro's live, attenuated double-deleted Listeria (LADD) technology platform, which is in development stage for treating advanced or metastatic non-small cell lung cancer. Johnson & Johnson's JNJ affiliate Janssen - Aduro's license partner for ADU-214 - is conducting this global study.
Aduro Biotech, Inc. Price, Consensus and EPS Surprise
Aduro Biotech, Inc. Price, Consensus and EPS Surprise | Aduro Biotech, Inc. Quote
Aduro currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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