AVEO Pharmaceuticals, Inc. (AVEO) reported third-quarter 2013 loss of 47 cents per share (excluding one-time expenses), narrower than the year-ago loss of 69 cents per share. The narrower year over year loss was primarily due to lower operating expenses. The Zacks Consensus Estimate was pegged at a loss of 41 cents per share. Investors reacted negatively to the news.
The company’s total collaboration revenue for the third quarter was $0.3 million as compared to $1.0 million in the year-ago period. Revenue in the third quarter 2012 was boosted by milestone payments and research funding from partners.
In the third quarter of 2013, research and development (R&D) expenses were $19.4 million, down 8.0% year over year. The decrease in R&D expenses was primarily because of a decrease in personnel-related expenses. A decrease in expenses pertaining to the development of ficlatuzumab and tivozanib also contributed to the reduction in R&D costs. General and administrative expenses decreased 52.3% to $4.4 million, reflecting cost efficiencies post restructuring initiatives.
AVEO in collaboration with its partner, Astellas Pharma, Inc. (ALPMY), is developing tivozanib for advanced metastatic colorectal cancer. The companies completed enrolment in a phase II BATON study on the candidate earlier this year. Data from the study is expected to be released in 2014. Tivozanib is also being developed for patients suffering from locally recurrent or metastatic triple negative breast cancer. AVEO and Astellas are evaluating tivozanib for the breast cancer indication in a phase II study. However, the enrolment process for the study has been slower than expected.
Meanwhile, AVEO expanded its pipeline by nominating to develop AV-380 for cachexia.
AVEO carries a Zacks Rank #3 (Hold). Right now, companies with an attractive Zacks Rank are AMAG Pharmaceuticals, Inc. (AMAG) and Osiris Therapeutics, Inc. (OSIR). Both stocks carry a Zacks Rank #1 (Strong Buy).