Fusion (FUSN) to Report Q4 Earnings: Here's What to Expect
We expect Fusion Pharmaceuticals FUSN to beat expectations when it reports fourth-quarter and full-year 2023 results later this month or early next month. In the last reported quarter, the company beat earnings expectations by 72.73%.
Factors to Note
Fusion Pharmaceuticals makes next-generation radiopharmaceuticals as precision medicines. It has a diversified pipeline of targeted alpha therapy (TAT) programs.
Fusion has a collaboration with AstraZeneca AZN to jointly develop novel TATs and combination programs between Fusion's TATs and AstraZeneca's DNA Damage Response Inhibitors (DDRis) and immuno-oncology agents. Its revenue comprises collaboration revenues from its partnership with AstraZeneca. In the absence of any marketed product, investor focus on the call will be on updates regarding Fusion’s pipeline candidates.
Fusion’s key clinical-stage pipeline candidates are FPI-2265, a small molecule-based TAT targeting prostate-specific membrane antigen for the treatment of metastatic castration-resistant prostate cancer (mCRPC), and FPI-1434, which is in phase I for patients with solid tumors expressing IGF-1R.
Preliminary data from approximately 20 to 30 patients from the phase II study (TATCIST) on FPI-2265 are expected to be released in April 2024. Target enrollment has been achieved in the study.
In January, Fusion Pharmaceuticals announced that it has achieved alignment with the FDA on a submitted protocol and development plan for FPI-2265, thus establishing a potential path to registration for the candidate. A phase III registrational study is expected to begin in 2025. Fusion Pharmaceuticals expects to initiate a combination study of FPI-2265 plus Merck MRK/AstraZeneca’s Lynparza (Olaparib) in earlier lines of mCRPC treatment in the first half of 2024.
Fusion Pharmaceuticals has also entered into a collaboration with Merck to evaluate FPI-1434 in combination with the latter’s blockbuster PD-L1 inhibitor, Keytruda, in patients with solid tumors expressing IGF-1R.
In April 2023, Fusion Pharmaceuticals received IND clearance to begin clinical development of FPI-2068, its novel TAT candidate, which targets solid tumors expressing EGFR-cMET. Fusion Pharmaceuticals is jointly developing FPI-2068 with AstraZeneca under the companies' multi-asset collaboration agreement. Pre-clinical data on the candidate has demonstrated strong anti-tumor activity and confirmatory evidence of FPI-2068's mechanism of action.
Earnings Surprise History
The company’s earnings beat estimates in three of the last four quarters while missing in one. The company has a four-quarter negative earnings surprise of 2.90%, on average.
Fusion Pharmaceuticals Inc. Price and EPS Surprise
Fusion Pharmaceuticals Inc. price-eps-surprise | Fusion Pharmaceuticals Inc. Quote
Fusion Pharmaceuticals’ stock has risen 158.3% in the past year against a decrease of 0.9% for the industry.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts an earnings beat for Fusion Pharmaceuticals in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. This is the case here, as elaborated below.
Earnings ESP: Fusion Pharmaceuticals’ Earnings ESP is +6.13% as the Most Accurate Estimate is pegged at a loss of 32 cents per share, while the Zacks Consensus Estimate is pegged at a loss of 34 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Fusion Pharmaceuticals has a Zacks Rank #3.
Another Stock to Consider
Here is a drug/biotech stock that also has the right combination of elements to beat on earnings this time around:
Sarepta Therapeutics SRPT has an Earnings ESP of +306.25% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sarepta Therapeutics’ stock has risen 15.6% in the past year. Sarepta Therapeutics beat earnings estimates in each of the last four quarters. SRPT delivered a four-quarter earnings surprise of 48.67%, on average.
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