Celldex (CLDX) Posts Narrower Q2 Loss, Focus On Pipeline

Celldex Therapeutics, Inc. (NASDAQ:CLDX) reported a second-quarter 2016 loss of 32 cents per share, narrower than the Zacks Consensus Estimate and the year-ago loss of 33 cents per share.

Total revenues in the second quarter of 2016 declined 36.2% year over year to $1.4 million, but were in-line with the Zacks Consensus Estimate. Revenues are mainly generated under the company’s clinical trial collaboration with Bristol-Myers Squibb Company (NYSE:BMY) and its research and development agreement with Rockefeller University.

Research and development expenses declined 3% from the year-ago period to $25.7 million, reflecting lower clinical costs partially offset by higher contract manufacturing costs and personnel costs including higher stock-based compensation expense. General and administrative spend declined 4.9% to $7.8 million, reflecting lower commercial planning costs, partially offset by higher stock-based compensation expense.

Celldex is currently conducting a phase IIb study on glembatumumab vedotin, its most advanced pipeline candidate, in patients with metastatic triple negative breast cancers that overexpress gpNMB.

The candidate is also in a phase II single-agent study in metastatic melanoma with data to be presented at the European Society for Medical Oncology (ESMO) Congress in Oct 2016 – the study met its primary endpoint.

The candidate is being evaluated in several other studies as well.

Meanwhile, varlilumab is being evaluated in combination with Bristol-Myers’ Opdivo in a study that includes cohorts in advanced non-small cell lung cancer, colorectal cancer, ovarian cancer, head and neck squamous cell carcinoma, renal cell carcinoma and glioblastoma.

Varlilumab is also being evaluated in combination with Roche’s (OTC:RHHBY) Tecentriq (atezolizumab) in a phase I/II study for multiple solid tumors. The phase II portion of the study in renal cell carcinoma will commence in the third quarter. Varlilumab is being evaluated in several other combination studies as well. 2017 should be a catalyst rich year for the company as data from several glembatumumab vedotin and varlilumab programs are reported.

Celldex expects that its cash, cash equivalents and marketable securities plus anticipated proceeds from future sales of its common stock under a $60 million sales agreement will be enough to fund working capital requirements and planned operations through 2018.

Celldex is a Zacks Rank #3 (Hold) stock. ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) is a better-ranked stock in the health care sector carrying a Zacks Rank #1 (Strong Buy).

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