Rocket (RCKT) Registers Narrower-Than-Expected Loss in Q4
Rocket Pharmaceutical RCKT reported a loss of 64 cents per share in the fourth quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 80 cents. In the year-ago quarter, the company posted a loss of 92 cents.
As the company lacks any marketed product in its portfolio, it did not record any revenues during the quarter.
Quarter in Detail
In the reported quarter, general and administrative (G&A) expenses rose 13% year over year to $21.5 million, due to pre-commercialization activities and higher employee-related costs.
Research and development (R&D) expenses were $41.7 million, down 17% from the year-ago quarter’s figure.
As of Dec 31, 2023, Rocket Pharmaceuticals had cash, cash equivalents and investments of $407.5 million compared with $437.2 million on Sep 30, 2023. Management expects this cash balance to fund operations and meet capital expenditure requirements into 2026.
Year to date, the stock has lost 0.6% against the industry’s 0.5% rise.
Full-Year Results
Devoid of marketed products, Rocket did not record any revenues during the year.
The company reported a loss of $2.92 per share for full-year 2023. In the year-ago period, the company reported a loss of $3.26.
Pipeline Updates
Rocket is focused on developing its gene therapy pipeline, which is targeted at multiple cardiovascular (CV) and hematology indications.
In hematology, the company’s three gene therapy candidates are in clinical development, namely Kresladi (RP-L201 or marnetegragene autotemcel), RP-L102 and RP-L301. All of these therapies utilize lentiviral vectors (LV) (gene delivery vehicle) for genetic modifications.
A biologics license application (BLA) seeking approval of Kresladi for treating severe leukocyte adhesion deficiency-I (LAD-I) is under review with the FDA. While a final decision was initially expected by the end of March 2024, the agency extended the review period by an additional three months to review the data submitted by Rocket in response to the FDA’s information requests. A final decision is now expected by Jun 30, 2024.
While RP-L102 is being evaluated in a pivotal mid-stage study for the treatment of fanconi anemia (FA), the company is in the process of starting a mid-stage study on RP-L301 in pyruvate kinase deficiency (PKD). Management is also on track to initiate filings for RP-L102 in Europe and the United States in the first half of 2024.
Rocket is developing adeno-associated virus (AAV) gene therapies to target genetic CV indications caused by mutations or defects in different genes. The most advanced AAV-based candidate in the company’s pipeline is RP-A501, which is in a mid-stage study for treating Danon disease (DD).
Another AAV-based gene therapy candidate is RP-A601, which is in early-stage development for arrhythmogenic cardiomyopathy (ACM). It also plans to start clinical studies on a new gene therapy candidate for treating dilated cardiomyopathy (DCM) later this year.
Zacks Rank & Key Picks
Currently, Rocket has a Zacks Rank #4 (Sell). Some better-ranked stocks in the overall healthcare sector include Adicet Bio ACET, ADMA Biologics ADMA and Puma Biotechnology PBYI. While Puma Biotechnology sports a Zacks Rank #1 (Strong Buy) at present, Adicet and ADMA carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per sharehave risen from 18 cents to 22 cents. Year to date, shares of ADMA have risen 19.5%.
Earnings of ADMA Biologicsbeat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 63.57%.
In the past 60 days, estimates for Puma Biotechnology’s 2023 earnings per share have risen from 72 cents to 73 cents. Meanwhile, during the same period, earnings per share estimates for 2024 have improved from 64 cents to 71 cents. Year to date, shares of PBYI have rallied 49.7%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on one occasion. Puma delivered a four-quarter average earnings surprise of 76.55%.
In the past 60 days, estimates for Adicet Bio’s 2024 loss per share have improved from $2.11 to $1.81. Year to date, shares of ACET have rallied 28.0%.
Earnings of Adicet Bio beat estimates in two of the trailing four quarters while missing the mark on the other two occasions. On average, Adicet came up with a four-quarter negative earnings surprise of 8.36%.
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