Immune Design (IMDZ) Posts Narrower-than-Expected Loss In Q1

Immune Design Corp. (NASDAQ:IMDZ) reported first-quarter 2017 loss of 50 cents per share, narrower than the Zacks Consensus Estimate of a loss of 62 cents and also a year-ago loss of 61 cents.

The company’s shares have underperformed the Zacks classified Medical - Drugs industry year to date. Shares of Immune Design rallied 10% in the period, while the industry witnessed a gain of 4.9%.

Quarter in Detail

Immune Design’s total revenue for the first quarter was $5.5 million, up from $1.9 million in the year ago quarter. The increase was primarily due to $5.2 million collaboration revenues received from partner Sanofi (NYSE:SNY) for G103 (HSV2 therapeutic vaccine). The top line also benefited from product sales of $0.3 million to other third parties. Quarterly revenues were above the Zacks Consensus Estimate of $2 million as well.

Research and development (R&D) expenses were up 32.8% to $14 million in the quarter primarily due to the company’s progress with the ongoing R&D programs. The programs include phase I and phase II studies and increase in personnel costs that are needed to support the company’s pipeline.

General and administrative expenses also increased 5.6% to $4.1 million.

Pipeline Update

Immune Design is developing multiple candidates using its two discovery platforms – ZVex and GLAAS – in the field of immuno-oncology. Its key pipeline candidates are CMB305 and G100. Presently, CMB305 is being evaluated in soft tissue sarcoma (STS) patients both as monotherapy and in combination with an anti-PD-L1 antibody. The follow-up is continuing in the two fully enrolled monotherapy phase I studies. Meanwhile, the company completed enrolment by the end of the first quarter in the phase II study comparing CMB305 plus Roche Holding (SIX:ROG) AG’s (OTC:RHHBY) Tecentriq with Tecentriq alone.

Furthermore, G100, which is developed on the GLAAS platform, is being evaluated in an ongoing phase I dose escalation and in a randomized phase II study in patients with low grade follicular non-Hodgkin lymphoma (FL). Moving ahead, the data from the phase I dose escalation monotherapy study will be presented at ASCO in 2017. Notably, the company completed patient enrolment in the phase II study comparing G100 and low dose radiation (XRT) versus G100 and XRT with the systemic administration of Merck & Co., Inc’s (NYSE:MRK) anti-PD-1 agent, Keytruda. Additionally, the FDA recently granted Orphan Drug Designation for G100 for the treatment of FL .

2017 Outlook

Immune Design continues to anticipate cash to fund operations into the second half of 2018.

Immune Design Corp. Price, Consensus and EPS Surprise

Immune Design Corp. Price, Consensus and EPS Surprise | Immune Design Corp. Quote

Zacks Rank

Immune Design currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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