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Agios (AGIO) Reports Wider-than-Expected Loss in Q4 - Tale of the Tape

Agios Pharmaceuticals, Inc. ( AGIO ) is a development-stage biopharmaceutical company with a focus on the development of a potential treatment for cancer and rare genetic disorders of metabolism. This Cambridge, MA-based company has three candidates in its pipeline, namely, AG-221 (IDH2 mutant inhibitor - advanced hematologic malignancies like acute myelogenous leukemia/AML and solid tumors), AG-120 (IDH1 mutant inhibitor - AML and solid tumors) and AG-348 (pyruvate kinase deficiency).

Revenues at Agios mainly consist of collaboration revenues under its agreement with Celgene Corporation. Agios is in collaboration with Celgene for AG-221 and AG-120.

With Agios not having any approved products in its portfolio, investor focus should remain on pipeline updates since a number of pipeline related activities are lined up for the rest of 2015.

Agios has a disappointing earnings track record with the company delivering negative earnings surprises in three of the last four trailing quarters. However, the company has a positive average surprise of 20.23%. Estimate revisions are, however, flat for 2015.

Currently, Agios has a Zacks Rank #2 (Buy), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Agios posted wider-than-expected fourth quarter loss. Our consensus called for a loss of 55 cents per share, and the company reported a loss of 76 cents per share.

Revenue: Revenues, however, surpassed expectations. Agios posted revenues of $14.6 million, compared to our consensus estimate of $12 million.

Key Stats: Agios continues to progress with its pipeline. While Agios plans to initiate expansion cohorts as part of an ongoing phase I study on AG-120 (hematologic malignancies) in the first half of 2015, data from the expansion cohorts in the ongoing phase I study on AG-221(hematologic malignancies) is expected in mid-2015. The company is on track to progress with its phase I studies on AG-120 and AG-221 in solid tumor. Meanwhile, the company expects to initiate a phase II study on AG-348 in the first half of 2015.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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