ImmunoGen (IMGN) Q3 Earnings & Sales Beat, Shares Rally
Zacks Investment Research | Nov 03, 2019 11:54PM ET
ImmunoGen, Inc. (NASDAQ:IMGN) reported loss of 15 cents per share for the third quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of 19 cents and the year-ago loss of 31 cents. The loss includes a restructuring charge of $19.3 million.
Revenues came in at $13.3 million, beating the Zacks Consensus Estimate of $9 million. Revenues also increased from the year-ago quarter figure of $10.9 million. The third quarter revenues included $13.2 million in non-cash royalty revenues. Revenues from license and milestone fees were $0.08 million.
Operating Expenses & Cash Details
During the quarter, R&D expenses decreased 55.5% from the year-ago level to $21 million due to lower costs related to clinical development of mirvetuximab soravtansine and reduction in personnel expenses due to restructuring initiatives. General and administrative (G&A) expenses increased 10.3% to $9.2 million in the third quarter of 2019.
ImmunoGen’s cash and cash equivalents decreased to $204.5 million at the end of September 2019 compared with $239.8 million at the end of June 2019. The company’s sale of residual rights to Roche’s Kadcyla royalties in January 2019 benefited cash resources by $65.2 million in the third quarter.
Pipeline Update
Please note that mirvetuximab soravtansine industry ’s increase of 4.8%.
2019 Guidance
ImmunoGen updated its guidance for 2019. The company raised its expectation for full-year revenues to the range of $65-$70 million from the previously expected range of $40-$45 million. The increase in the guidance reflects recognition of deferred revenues from Jazz Pharmaceuticals (NASDAQ:JAZZ) as part of the collaboration related to development of IMGN779. ImmunoGen had discontinued all future development of IMGN779 as part of its restructuring initiatives started in June this year.
The company expects its operating expense to be between $170 million and $175 million, lower than the previously guided range of $175-$180 million. The company expects cash and cash equivalents to be between $170 million and $175 million at 2019 end (previously $165-$170 million). It expects its cash resources to be enough to fund its operations through the release of top-line results from the upcoming phase III study on mirvetuximab soravtansine, expected in the first half of 2022.
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