Immunomedics (IMMU) Posts Wider-Than-Expected Loss In Q2

Immunomedics (NASDAQ:IMMU) incurred a loss of 40 cents per share in the second quarter of 2019, narrower than the loss of 68 cents in the year-ago quarter. However, the loss was also wider than the Zacks Consensus Estimate of a loss of 32 cents.

The company did not generate any revenue in the second quarter of 2019, mainly due to the discontinued sale of LeukoScan in February 2018 to focus on its antibody-drug conjugate (“ADC”) business.

Total costs and expenses were $67.2 million in the second quarter compared with $52.8 million in the year-ago quarter, mainly due to a $29.3-million increase in research & development and sales & marketing expenses, partially offset by decreases in general & administrative expenses.

Shares of the company have increased 3.8% against the industry’s decline of 2.1%.

The company’s most advanced product candidate is sacituzumab govitecan, which is currently being evaluated in a phase III ASCENT study in patients with mTNBC, who have received at least two prior therapies. The company reached its target enrollment for the phase III confirmatory ASCENT study (NCT02574455) in mTNBC patients, previously treated with at least two systemic chemotherapy regimens. Top-line data are expected in mid-2020.

The company expects to resubmit its biologics license application (BLA) for sacituzumab govitecan in mTNBC in the fourth quarter of 2019.

The company initiated TROPICS-03 (NCT03964727), a multi-cohort phase II study designed to assess the clinical activity of sacituzumab govitecan in patients with metastatic solid tumors, including NSCLC, small cell lung cancer, head and neck cancer, and endometrial cancer. Dosing of the first NSCLC patient is expected in the third quarter of 2019.

The open-label phase Ib/II SEASTAR study (NCT03992131) of sacituzumab govitecan in combination with Clovis Oncology’s (CLVS) PARP inhibitor, Rubraca (rucaparib), for the treatment of mTNBC, mUC and platinum-resistant ovarian cancer is enrolling patients with at least one prior line of standard therapy for advanced disease.

Zacks Rank & Stocks to Consider

Immunomedics currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks are Acorda Therapeutics Inc. (NASDAQ:ACOR) , Axovant Sciences Ltd. (NASDAQ:AXGT) and Epizyme Inc. (NASDAQ:EPZM) . While Acorda and Axovant carry a Zacks Rank #1 (Strong Buy), Epizyme carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Acorda’s loss per share estimates have narrowed from $3.59 to $2.74 for 2019 in the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters, the average being 69.68%.

Axovant’s loss per share estimates have narrowed from $7.00 to $5.34 for 2019 and from $6.48 to $3.59 for 2020 in the past 60 days.

Epizyme’s loss per share estimates have narrowed from $1.80 to $1.79 for 2020 in the past 90 days. The company delivered a positive earnings surprise in the trailing four quarters, the average being 22.15%.

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