Epizyme (EPZM) Reports Narrower-than-Expected Q2 Loss
Zacks Investment Research | Aug 04, 2017 08:23AM ET
Epizyme, Inc. (NASDAQ:EPZM) is a Cambridge, MA-based development-stage biopharmaceutical company focused on bringing novel epigenetic oncology therapies to the market.
Being a development-stage company, Epizyme does not have any approved product in its portfolio yet. Hence, investor focus should remain on pipeline updates.
Epizyme’s lead candidate, tazemetostat (an EZH2 inhibitor) is being evaluated in phase II studies in non-Hodgkin lymphoma (NHL) and genetically defined solid tumors. The company is also exploring tazemetostat to increase the clinical activity of immuno-oncology therapies by combining with an anti-PD 1 or PDL-1 agent.
The company’s track record has been strong, with the company beating estimates in each of the last four quarters, with an average positive earnings surprise of 11.09%.
Currently, Epizyme has a Zacks Rank # 2 (Buy), 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: Epizyme posted narrower-than-expected loss in the second quarter of 2017. While our consensus called for a loss of 56 cents per share, the company reported a loss of 48 cents.
Revenues: In the second quarter, the company recognized $10 million collaboration revenue. The collaboration revenue represents milestone payment from GlaxoSmithKline following their initiation of GLP toxicology studies for a first-in-class methyltransferase inhibitor discovered by Epizyme and licensed to GSK. The revenue exceeded the Zacks Consensus Estimate of 4 million.
Pipeline Update: The company completed enrollment in the epithelioid sarcoma (ES) cohort of its ongoing, multi-arm phase II study in adult patients with INI1-negative solid tumors and reported positive interim data at the American Society of Clinical Oncology (ASCO) Annual Meeting. Epizyme has identified a path to submission for accelerated approval for the treatment of patients with ES, and expects to file the first new drug application for tazemetostat in this indication in 2018.
In Jun 2017, the company announced positive interim efficacy data from the ongoing phase II study of tazemetostat as a single-agent treatment for relapsed or refractory patients with follicular lymphoma (FL) or diffuse large B-cell lymphoma (DLBCL).
Share Price Impact: The shares were up 7.63% in pre-market trading.
Epizyme, Inc. Price and EPS Surprise
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