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Infinity (INFI) Q2 Loss Wider Than Expected, Sales Miss

Zacks Equity Research

Infinity Pharmaceuticals Inc. INFI reported a loss of 18 cents in the second quarter of 2019, wider than a loss of 12 cents in the year-ago quarter. The loss was also wider than the Zacks Consensus Estimate of a loss of 15 cents.

The company recognized $0.26 million as royalty revenues, lagging the Zacks Consensus Estimate of $2 million. The company did not record any revenues in the year-ago quarter.

Infinity recognized the $30-million gross proceeds from the Copiktra royalty monetization as a liability on the balance sheet in accordance with accounting guidance for royalty monetization. The company is amortizing the liability to non-cash interest expenses every quarter.

Shares of Infinity have soared 33.1% year to date compared with the industry’s growth of 7.9%.

2019 Outlook

The company expects a net loss for 2019 to be $40-$50 million.

Infinity expects its existing cash, cash equivalents and available-for-sale securities to be adequate to satisfy its capital needs in the second half of 2020.

Pipeline Updates

The company will initiate MARIO-3, a phase II study of novel triple combination front-line therapy, in clinical collaboration with Roche/Genentech RHHBY. Roche will supply Tecentriq (atezolizumab) to Infinity for use in MARIO-3. The study will evaluate the company’s lead immuno-oncology candidate, IPI-549, in combination with Tecentriq and Abraxane (nab-paclitaxel) in front-line, triple-negative breast cancer (TNBC), and IPI-549 in combination with Tecentriq and Avastin (bevacizumab) in front-line renal cell cancer (RCC). The study is anticipated to initiate in the third quarter of 2019.

Infinity initiated a global, randomized phase II study in collaboration with Bristol-Myers Squibb BMY, which will evaluate IPI-549 in combination with Opdivoin second-line,immuno-oncology (I/O) naïve patients with advanced urothelial cancer.

The company expects to complete enrollment in the second half of 2019 in the expanded combination cohorts in MARIO-1, an ongoing phase I/Ib study of IPI-549 as a monotherapy and in combination with Opdivo in approximately 225 patients with advanced solid tumors.

In the third quarter of 2019, the company will also initiate a study in collaboration with Arcus BioSceinecs Inc. RCUS to evaluate IPI-549 combined with the latter’s adenosine inhibitor, AB928, and Doxil in patients with advanced TNBC.

 

Infinity Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

 

Infinity Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

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

Zacks Rank

Infinity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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