Infinity Pharma Rises on Narrower-than-Expected Loss

Zacks

Infinity Pharmaceuticals Inc. (INFI) reported a loss of 68 cents per share in the fourth quarter of 2013, narrower than the Zacks Consensus Estimate of a loss of 83 cents and the year-ago loss of $1.15 per share. The narrower loss was attributable to lower operating expenses. Infinity Pharma’s shares soared more than 15.5% following the fourth quarter results.

Infinity Pharma did not generate any revenue during the fourth quarter of 2013, similar to the year-ago quarter.

Infinity Pharma reported a loss of $2.64 per share in 2013, narrower than the Zacks Consensus Estimate of a loss of $2.81 and the 2012 loss of $3.18 per share. The company did not record any revenues in 2013 as against revenues of $47.1 million in 2012.

Other Details

Infinity Pharma’s research and development (R&D) expenses decreased 33.5% to $26.6 million in the fourth quarter of 2013. The decrease was primarily due to lesser spend on the company’s pipeline. The company’s general and administrative (G&A) expenses declined 8.7% to $6.5 million.

Infinity Pharma has progressed well with its pipeline. The company also has a series of pipeline events lined up for 2014. The company expects to initiate a phase III study (DYNAMO+R) on IPI-145 in combination with Rituxan (rituximab) in patients suffering from relapsed indolent non-Hodgkin lymphoma (iNHL).

Infinity Pharma also has plans to start a phase II study on IPI-145 for the treatment of treatment-naïve patients suffering from iNHL. Infinity Pharma is currently evaluating IPI-145 in patients suffering from iNHL in the phase II DYNAMO study. The primary objective of the study is to evaluate the response rate as per the International Working Group criteria.

The company is also running a phase III study on IPI-145 in patients suffering from chronic lymphocytic leukemia. IPI-145 is also being developed for the treatment of mild allergic asthma (phase IIa) with top-line data expected later in the year. Results from another phase II study on the candidate in patients suffering from moderate-to-severe rheumatoid arthritis are expected later this year.

2014 Guidance

Infinity Pharma expects 2014 operating expenses within $170−$180 million. Net loss for the year is expected in the range of $170−$180 million.

Our Take

We are encouraged by the company’s progress with IPI-145. We expect investor focus to remain on the candidate going forward.

Infinity Pharma, a biopharmaceutical company, currently carries a Zacks Rank #3 (Hold). Some other stocks worth considering in the same sector include Alexion Pharmaceuticals (ALXN), Shire (SHPG) and Auxilium Pharmaceuticals Inc. (AUXL). All these stocks carry a Zacks Rank #1 (Strong Buy).
 

Read the Full Research Report on ALXN
Read the Full Research Report on AUXL
Read the Full Research Report on SHPG
Read the Full Research Report on INFI


Zacks Investment Research

Rates

View Comments (0)