Epizyme (EPZM) Posts Narrower-Than-Expected Loss In Q1

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 for relapsed or refractory non-Hodgkin lymphoma (NHL) and advanced solid tumors. Data from a registration-supporting phase II monotherapy study on the candidate showed that as an oral monotherapy, tazemetostat led to meaningful clinical activity in patients with relapsed or refractory NHL. In Dec 2015, Epizyme’s Investigational New Drug (IND) application for tazemetostat was accepted by the FDA’s Division of Hematology Products for the treatment of adults with diffuse large B cell lymphoma (DLBCL). The FDA has recently granted orphan drug status to tazemetostat for the treatment of malignant rhabdoid tumors (MRTs).

The company has a mixed track record so far. It beat estimates in two of the last four trailing quarters and missed on the other two occasions, with a negative average earnings surprise of 15.25%.

Currently, Epizyme has a Zacks Rank #3 (Hold), 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 first quarter of 2016. While our consensus called for a loss of 47 cents per share, the company reported a loss of 41 cents.

Revenues: The company reported collaboration revenues of $0.5 million.

Key Stats: Epizyme has initiated a development plan for tazemetostat. The company is on track with the five-arm phase II study on tazemetostat for relapsed or refractory NHL, which was commenced in Jul 2015. The plan also includes a three-arm phase II study in adult patients with certain genetically defined solid tumors, and a dose-escalation and dose-expansion phase I study in pediatric patients with certain genetically defined solid tumors.

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