Agios (AGIO) Reports Wider-than-Expected Loss in Q2 – Tale of the Tape

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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 several early stage candidates in its pipeline. These include AG-221 for IDH2-mutant positive hematologic malignancies (phase I) and IDH2-mutant positive solid tumors (phase I), AG-120 for IDH1-mutant positive hematologic malignancies (phase I) and IDH1-mutant positive solid tumors (phase I), AG-881 for solid tumors with IDH mutation (phase I) and AG-348 for pyruvate kinase deficiency (phase I).

Revenues at Agios mainly consist of collaboration revenues under its agreement with Celgene Corporation. Agios is in collaboration with Celgene for AG-221, AG-120 and AG-881.

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.

The company has recorded positive earnings surprises in two of the trailing four quarters with an average beat of 37.67%.

Currently, Agios has a Zacks Rank #1 (Strong 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 quarterly loss. Our consensus called for a loss of 52 cents per share, and the company reported a loss of 85 cents per share.

Revenue: Revenues also missed expectations. Agios posted revenues of $13.2 million, compared to our consensus estimate of $22 million.

Key Stats: Agios continues to progress with its pipeline. In the reported quarter, the company announced that that it has dosed the first patient in a phase I, multi-center, open-label, dose-escalation and expansion study on single agent AG-881, a second generation IDH inhibitor. The study will evaluate the safety, clinical activity, pharmacokinetics and pharmacodynamics of the candidate in patients with advanced solid tumors with an IDH mutation.

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