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ImmunoGen (IMGN) Q2 Loss Wider, Revenues Miss

Indrajit Bandyopadhyay
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ImmunoGen (IMGN) Q2 Loss Wider, Revenues Miss

ImmunoGen posted wider-than-expected loss in the second quarter of 2018. Moreover, revenues missed estimates, significantly decreasing year over year.

Waltham, MA-based ImmunoGen, Inc. IMGN is a development-stage biotechnology company, which focuses on developing targeted anticancer therapeutics using its antibody-drug conjugate technology (“ADC”). The company’s ADC technology is used in Roche's marketed product, Kadcyla and in programs in development by its partners Amgen and Bayer among others. The company’s lead pipeline candidate, mirvetuximab soravtansine, is being developed for treatment of ovarian cancer.

With ImmunoGen not having any approved products in its portfolio, the company earns revenues from royalties, license and milestone payments, and research and development support fees paid by its partners.

ImmunoGen’s track record has been disappointing with the company missing expectations in three of the past four quarters and beating once. Overall, the company has posted an average negative surprise of 14.39%.

Currently, ImmunoGen has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: ImmunoGen posted wider-than-expected loss in the second quarter of 2018. Our consensus called for a loss of 29 cents per share, and the company reported a loss of 31 cents per share. Moreover, loss in the quarter is also wider than year ago figure of 10 cents.

Revenues: ImmunoGen posted revenues of $9.3 million which missed the Zacks Consensus Estimate of $14.15 million. Moreover, revenue decreased 76.2% from year-ago figure of $39 million due to significantly lower license and milestone fees.

Key Stats: R&D expenses increased 9.6% from the year-ago level to $38.7 million. However, selling, general and administrative (SG&A) expenses were down 9.2% to $8.7 million in the second quarter of 2018.

2018 Guidance: The company maintained its expectation for revenues in the range of $60-$65 million for 2018. The Zacks Consensus Estimate for the metric is pegged at $64.24 million for the year.

However, ImmunoGen has updated its operating expenses guidance for 2018. Operating expenses are now expected in the range of $215-$220 million in 2018 compared to $200-$205 expected previously.

The company also raised its expectation for cash and cash equivalents by December 2018 end in the range of $265 million to $270 million (previously $115 million to $120 million).

Share Price Impact: Shares are inactive in pre-market trading.

Check back later for our full write up on IMGN earnings report later!

ImmunoGen, Inc. Price and EPS Surprise


ImmunoGen, Inc. Price and EPS Surprise | ImmunoGen, Inc. Quote

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