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AVEO Pharmaceuticals' (AVEO) Q2 Earnings Surpass Estimates

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AVEO Pharmaceuticals, Inc. AVEO incurred a loss of 42 cents per share in second-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 51 cents but wider than the year-ago quarter’s loss of 20 cents.

The company’s top line comprises collaboration and licensing revenues plus partnership royalties. Total revenues in the reported quarter were $0.75 million compared with $0.7 million in second-quarter 2019. However, revenues missed the Zacks Consensus Estimate of $1 million.

Shares of the company have lost 25.7% year to date against the industry’s growth of 5.3%.

Operating Expenses

Research & development expenses soared 69.2% year over year to $4.4 million. Meanwhile, general and administrative expenses increased 23.2% year over year to $3.7 million.

Pipeline Updates

In June 2020, the FDA accepted for filing the company’s new drug application (NDA) seeking approval for tivozanib, the next-generation vascular endothelial growth factor receptor tyrosine kinase inhibitor (VEGFR-TKI), as a treatment for relapsed or refractory RCC. The FDA set an action date of Mar 31, 2021.

The company is preparing for the launch of tivozanib in the United States. It also announced that the FDA has conditionally accepted "Fotivda" as the proprietary brand name for tivozanib in the United States.

AVEO plans to submit an investigational new drug (IND) application to the FDA for AV-380, its first-in-class, potent, humanized inhibitory antibody targeting growth differentiation factor 15 (GDF15), for the treatment of cancer cachexia by end of 2020.

In May 2020, AVEO announced that the phase Ib/II DEDUCTIVE study evaluating tivozanib in combination with Imfinzi (durvalumab), AstraZeneca’s human monoclonal antibody directed against programmed death-ligand 1 (PD-L1), in patients with first line metastatic HCC had progressed to the phase II portion of the study.

Cash Position

AVEO had $79.5 million worth of adjusted cash, cash equivalents and marketable securities as of Jun 30, 2020. Management believes that its cash balance along with anticipated partnership payments and royalty revenues from Fotivda sale by EUSA will help fund its planned operations through 2022.

 

AVEO Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

 

AVEO Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
AVEO Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

AVEO Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | AVEO Pharmaceuticals, Inc. Quote

Zacks Rank & Stocks to Consider

AVEO currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the healthcare sector include Emergent Biosolutions Inc. EBS, Horizon Therapeutics Public Limited Company HZNP and Alimera Sciences Inc. ALIM.  While Emergent and Horizon Therapeutics sport a Zacks Rank #1 (Strong Buy), Alimera carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Emergent’s earnings estimates have increased from $3.27 to $5.60 for 2020 and from $3.35 to $6.67 for 2021 over the past 60 days.

Horizon Therapeutics’ earnings estimates have increased from $1.77 to $2.16 for 2020 and from $2.72 to $3.26 for 2021 over the past 60 days.

Alimera’s loss per share estimates have narrowed from $2.33 to $1.31 for 2020 and from 63 cents to 52 cents for 2021 over the past 60 days.

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