ImmunoGen (IMGN) Reports Wider-than-Expected Q3 Loss

Waltham, MA-based ImmunoGen, Inc. IMGN is a development-stage biotechnology company, which focuses on developing targeted anticancer therapeutics using its antibody-drug conjugate technology (ADC). The company’s ADC technology is used in Roche's marketed product, Kadcyla, in four other development-stage candidates in its own pipeline, and in programs in development by its partners Amgen and Bayer among others.

With ImmunoGen not having any approved products in its portfolio, the company earns revenues from royalties, license and milestone payments, and research and development support fees paid by its partners.

ImmunoGen has moved to reporting on a calendar-year basis, effective Jan 1, 2017.

ImmunoGen’s track record has been mixed with the company beating expectations in two of the past four quarters, posting in line results in one and missing in the other. Overall, the company has posted an average positive surprise of 12.99%.

ImmunoGen, Inc. Price and EPS Surprise

ImmunoGen, Inc. Price and EPS Surprise | ImmunoGen, Inc. Quote

Currently, ImmunoGen 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: ImmunoGen posted wider-than-expected loss in the third quarter of 2017. Our consensus called for a loss of 28 cents per share, and the company reported a loss of 61 cents per share.

Revenues: ImmunoGen posted revenues of $8.5 million compared with the Zacks Consensus Estimate of $29 million. The top line missed expectations considerably.

Key Stats: R&D expenses decreased 3.6% from the year-ago level to $31.7 million. Selling, general and administrative (SG&A) expenses were down almost 16% to $7.9 million due decreased personnel expenses in the third quarter of 2017.

2017 Guidance: The company maintained its revenue guidance in the range of $115 million and $120 million for 2017.

However, the company significantly raised its cash guidance for 2017 due to the execution of its agreement with Jazz in the third quarter for the development and commercialization of two early stage, antibody-drug conjugate (ADC) - IMGN779 and IMGN632. The company now expects cash and cash equivalents in the range of $260-$265 million, compared to $90-$95 million expected previously.

Operating expenses are now expected in the range of $170-$175 million, compared to $175-$180 million expected previously.

Share Price Impact: Shares were down almost 6% in pre-market trading.

Check back later for our full write up on IMGN earnings report later!

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