Synageva BioPharma Corp.’s (GEVA) shares were down 5.9% following the announcement of second quarter 2014 results. The company’s second quarter 2014 loss came in at $1.52 per share, much wider than the year- ago loss of 81 cents per share and the Zacks Consensus Estimate of a loss of $1.37. Lower revenues and higher costs led to the wider loss.
Second quarter revenues decreased 31.4% from the year ago quarter to $2.3 million.
Quarterly Details
In the reported quarter, Synageva earned $2.2 million in the form of royalties on Fuzeon and collaboration and license revenues of $0.1million from its partners.
Research & development (R&D) expenses shot up 114.2% year over year to $39.5 million. Selling, general & administration (SG&A) expenses increased 95.4% year over year to $12.6 million.
2014 Guidance Reiterated
For 2014, Synageva continues to expect net loss in the range of $190 million to $205 million as it continues to invest in its pipeline and expand its global, commercial and medical infrastructure.
Synageva, which reported positive, top-line results on lead candidate sebelipase alfa, expects to file for U.S. and EU approval by the end of the first quarter of 2015. The company is developing the candidate for children and adults with lysosomal acid lipase deficiency (LAL deficiency). Additional studies are ongoing.
We expect investor focus to remain on updates regarding sebelipase alfa.
Synageva carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector include Actelion Ltd. (ALIOF), Enzo Biochem Inc. (ENZ) and Curis, Inc. (CRIS). All three carry a Zacks Rank #1 (Strong Buy).
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