NEW YORK (AP) -- Shares of ImmunoGen Inc. declined Friday after the drug developer forecast a larger-than-expected loss in the new fiscal year.
ImmunoGen said it expects to lose $70 million to $74 million in its current fiscal year, which ends June 30. FactSet reports that analysts expected the company to lose $56 million, or 70 cents per share, on average.
The company also took a larger loss in the fiscal fourth quarter, as its research costs rose and revenue edged lower.
Shares of ImmunoGen declined $1.51, or 9.8 percent, to close at $13.90 Friday.
ImmunoGen reported a loss of $22.4 million, or 29 cents per share, in the fiscal fourth quarter after losing $16.2 million, or 23 cents per share, a year ago. A 9 percent increase in the number of outstanding shares in the current quarter reduced the per-share loss.
Revenue declined to $3 million from $6.5 million, while costs for research and development and other spending increased.
Analysts, on average, were forecasting a loss of 30 cents per share and $3.6 million in revenue, according to FactSet.
The Waltham, Mass., company is studying several different cancer treatments. Its most advanced product is T-DM1, for breast cancer. In June, ImmunoGen's partner Roche said its T-DM1 extended the lives of women with breast cancer by several months.
The therapy combines the main ingredient in Roche's cancer drug Herceptin with a second drug and a chemical that keeps the drugs linked until they reach a cancer cell, where the cocktail can be released. ImmunoGen developed the technology that combined the drugs. Roche plans to file for marketing approval of T-DM1 in the U.S. and Europe later this year and has plans for additional trials to win new approvals.
ImmunoGen said it lost $73.3 million, or 95 cents per share, in the fiscal year. It took a smaller loss of $58.3 million, or 85 cents per share, in fiscal 2011. Its revenue slipped to $16.4 million from $19.3 million.