ImmunoGen, Inc. IMGN reported a loss of 38 cents per share in the second quarter of fiscal 2016, wider than the Zacks Consensus Estimate of a loss of 35 cents. The reported loss compared unfavorably with the year-ago earnings of 16 cents.
Since ImmunoGen does not have any approved product in its portfolio yet, the company earns revenues in the form of royalties, license and milestone payments, and research and development support fees paid by its partners.
The company reported revenues of $18 million in the second quarter of fiscal 2016. However, revenues missed the Zacks Consensus Estimate of $20 million. In the year-ago quarter, the company had recorded revenues of $48.3 million, which included $41.4 million of amortization of upfront fees.
Research and development (R&D) expenses increased 38.2% from the year-ago quarter to $38.2 million. Selling, general and administrative (SG&A) expenses were up 16.9% to $8.1 million. SG&A expenses were driven by higher expenses related to the advancement of the company’s lead candidate, mirvetuximab soravtansine, and higher personnel-related expenses.
Currently, mirvetuximab soravtansine is being evaluated as monotherapy in the FORWARD I phase II study for pretreated FRα-positive ovarian cancer, and in combination with other approved anticancer agents in the FORWARD II phase Ib/II study for FRα-positive ovarian cancer.
Maintains Outlook
ImmunoGen continues to expect revenues in the $70–$80 million band in fiscal 2016. Operating expenses, including R&D and SG&A expenditures, are expected in the range of $175 million to $180 million.
The company expects net loss of $120–$125 million in fiscal 2016.
ImmunoGen also announced that it has earned a $10 million milestone payment after Bayer BAYRY initiated a global phase II study on anetumab ravtansine (BAY 94-9343). The milestone payment is expected to be reflected in ImmunoGen’s third-quarter fiscal 2016 results.
ImmunoGen is a Zacks Rank #4 (Sell) stock. Some better-ranked stocks in the health care sector include Infinity Pharmaceuticals, Inc. INFI and Immune Design Corp. IMDZ. Both stocks sport a Zacks Rank #1 (Strong Buy).
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