Infinity (INFI) Reports Narrower-than-Expected Loss In Q1

Infinity Pharmaceuticals, Inc. (NASDAQ:INFI) reported a loss of 21 cents per share in first-quarter 2017, narrower than the Zacks Consensus Estimate loss of 22 cents. Also, the company had reported loss of 82 cents in the year-ago quarter.

Since Infinity does not have any approved product in its portfolio, the company earns revenues in the form of royalties, license and milestone payments as well as research and development (R&D) support fees paid by its partners.

Infinity did not record any revenue during first-quarter 2017. But it had recorded collaboration revenue of $9.3 million in the year-ago quarter, related to Infinity's previous collaboration agreement with AbbVie Inc. (NYSE:ABBV) .

Infinity’s share price has increased 36.3% year to date, while the Zacks classified Medical-Drugs industry gained 3.3%.

Quarter in Detail

In the reported quarter, Research and Development (R&D) expenses plummeted 89.7% to $4.03 million. The decline was mainly related to a decrease in clinical development expenses for duvelisib in addition to the company's 2016 restructuring activities.

General and administrative (G&A) expenses were $6.44 million for the reported quarter, down 40.6% year over year. The decrease was mainly due to the company's 2016 restructuring activities.

Currently, Infinity is evaluating IPI-549 as a monotherapy and in combination with Opdivo (nivolumab) in a phase I study in patients with advanced solid tumors.

The company anticipates completing the monotherapy dose-escalation phase of the study in the first half of 2017. Also, it expects to initiate patient enrolment in the monotherapy expansion cohort in the second half of 2017. In addition, it plans to complete the dose-escalation phase evaluating IPI-549 in combination with Opdivo in the same period, and initiate multiple combination expansion cohorts as well.

2017 Outlook

In 2017, Infinity expects net loss to be in the range of $40 million to $50 million. The Zacks Consensus Estimate is pegged at a loss of $1.03 per share. Moreover, the company anticipates ending 2017 with year-end cash and cash equivalents and available-for-sale securities balance in $40 million to $50 million band.

Zacks Rank & Stocks to Consider

Infinity currently holds a Zacks Rank #2 (Buy). Other favorable ranked stocks in the health care sector include Galena Biopharma, Inc. (NASDAQ:GALE) and BioTime, Inc. (NYSE:BTX) . While Galena sports a Zacks Rank #1 (Strong Buy), BioTime carries a Zacks Rank #2 (Buy) .You can see the complete list of today’s Zacks #1 Rank stocks here.

Galena’s loss per share estimates narrowed from $2.03 to 58 cents for 2017 over the last 60 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 53.83%.

BioTime’s loss per share estimates narrowed 60.9% to 18 cents for 2017 over the last 60 days. The company posted a positive earnings surprise in two of the four trailing quarters with an average beat of 12.32%.

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