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Why Is Immune Design (IMDZ) Up 27.9% Since the Last Earnings Report?

It has been about a month since the last earnings report for Immune Design Corp.IMDZ . Shares have added about 27.9% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Immune Design Q4 Loss In Line; Sales Beat Estimates

Immune Design reported fourth-quarter 2016 loss of $0.57 per share, in line with Zacks Consensus Estimate but narrower than the year-ago loss of $0.60.

Quarter in Detail

Immune Design's total revenue for the fourth quarter was $2.1 million, up 90.9% year over year, primarily due to $1.6 million collaboration revenues received from partner Sanofi for G103 (HSV2 therapeutic vaccine). The top line also benefited from product sales of $0.5 million to Sanofi and other third parties. Quarterly revenues were also above the Zacks Consensus Estimate of $1.34 million.

Research and development (R&D) expenses were up 34.8% to $12.0 million in the quarter primarily due to the company's progress with the ongoing R&D programs, including phase I and phase II studies and increase in personnel cost needed to support the company's pipeline.

General and administrative expenses increased 10% to $4.4 million.

Full-Year 2016 Results

Full year 2016 loss per share was $2.47 per share, wider than the Zacks Consensus Estimate of a loss of $2.45. In the year-ago quarter, the company had reported a loss of $2.06.

Full year 2016 revenues came in at $13.3 million, of which $7 million came from Sanofi on achieving a milestone, up almost 40% from the year-ago period.

In Sep 2016, the company completed a follow-on public offering of its shares with net proceeds of $30.3 million, bringing in new investors. In Jun and Oct 2016, new senior executives were recruited with late-stage oncology drug development expertise.

Pipeline Update

The company is developing multiple candidates using its two discovery platforms - ZVex and GLAAS - in the field of immuno-oncology. Key pipeline candidates include CMB305 and G100. Presently, CMB305 is being evaluated in soft tissue sarcoma (STS) patients both as monotherapy and in combination with an anti-PD-L1 antibody. While follow-up continues in the two fully enrolled monotherapy phase I studies, enrolment is ongoing in a phase II study comparing CMB305 plus Roche's Tecentriq compared with Tecentriq alone.

Meanwhile, G100, developed on the GLAAS platform, is being evaluated in a phase I/II study in patients with follicular non-Hodgkin lymphoma (fNHL) as a monotherapy as well as in combination with Merck & Co., Inc's anti-PD-1 agent Keytruda.

2017 Outlook

The company expects its presently available cash to fund operations till second half of 2018.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions. In the past month, the consensus estimate shifted upward by 10.5% due to these changes.

Immune Design Corp. Price and Consensus

Immune Design Corp. Price and Consensus | Immune Design Corp. Quote

VGM Scores

Currently, Immune Design's stock has an average Growth Score of 'C', however its Momentum is doing a bit better with a 'B'. However, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate that the stock is more suitable for momentum investors than growth investors.

Outlook

The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.

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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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