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Chimerix Q4 Loss Narrower Than Expected, Revenues Exceed

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Chimerix, Inc. CMRX reported net loss from continuing operations of 41 cents per share in the fourth quarter of 2017, wider than net loss of 32 cents a year ago. However, the same was narrower than the Zacks Consensus Estimate of a loss of 48 cents. 

For the full year, net loss came in at $1.51 per share, narrower than $1.65 a year ago.

Revenues

In the fourth quarter, Chimerix reported Contract revenues of $1.8 million, down 7.1% year over year. The top line however, exceeded the Zacks Consensus Estimate of $1 million. The year-over-year decline resulted from a fall in reimbursable expenses related to the company’s BARDA developmental contract.

Full-year Contract revenues came in at $4.49 million, a 21.2% drop from the year-ago period’s level.

Research and development expenses totaled $12.9 million, up 10.3% year over year in the reported quarter. This downside was primarily due to the ongoing AdVance trial and the initiation of the AdAPT trial. General and administrative expenses amounted to $7.6 million, a 34.9% surge year over year, primarily on an increase in market education and launch readiness.

Chimerix, Inc. Price, Consensus and EPS Surprise

Chimerix, Inc. Price, Consensus and EPS Surprise | Chimerix, Inc. Quote

 

Consequently, loss from operations came in at $18.7 million, wider than $15.4 million in the prior-year quarter. This operating loss may be attributed to significantly lower revenues year over year and escalating costs plus expenses.

Financials

Chimerix exited 2017 with cash and cash equivalents and short-term investments of $151.5 million compared with $232.1 million recorded at the end of 2016.

Our Take

Chimerix exited the fourth quarter of 2017 on a positive note with narrower-than-estimated loss and revenues surpassing the Zacks Consensus Estimate. However, a year-over-year decrease in the top line was a concern.

Nonetheless, we are encouraged by the company’s progress in the fourth quarter, courtesy of its advancement with lead product candidate, brincidofovir. The company witnessed impressive enrollments in its multiple ascending dose study of IV BCV.

In the quarter under review, the company commenced AdAPT study in both the United States and the EU. The study is designed to provide comparative data on brincidofovir for patients with life-threatening adenovirus infection. The company is also progressing well with its ongoing first-time-in-human study on CMX521.

Zacks Rank & Key Picks

Chimerix has a Zacks Rank #3 (Hold). A few better-ranked stocks that have already reported solid earnings results are PetMed Express PETS, PerkinElmer PKI and Becton, Dickinson and Company BDX. While PetMed sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Becton, Dickinson carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed reported third-quarter fiscal 2018 results. Adjusted earnings per share of 44 cents were up 88.3% from the prior-year quarter. Revenues rose 13.7% on a year-over-year basis to $60.1 million.

PerkinElmer reported fourth-quarter 2017 adjusted earnings per share of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.

Becton, Dickinson reported first-quarter fiscal 2018 adjusted earnings per share of $2.48, up 3.9% at constant currency. Revenues totaled $3.08 billion, up 3.7% on constant currency basis.

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