What's In Store For Immune Design (IMDZ) Stock In Q1 Earnings?

Immune Design Corp (NASDAQ:IMDZ) is expected to report first-quarter 2017 results on May 9.

The company broke even in the last reported quarter. In fact, the company had posted a positive surprise in two of the four trailing quarters bringing the average surprise to 4.31%. Let’s see how things are shaping up for this announcement.

Immune Design’s shares have outperformed the Medical-Drugs industry year to date. The stock was up 6% during this period compared with the industry’s gain of 5.4%.

Factors at Play

Being a development-stage biopharmaceutical company, Immune Design has not generated any product revenues yet. The company earns revenues from collaboration and licensing agreements and product sales.

Moreover, investors remain focused on the company’s progress with its pipeline candidates. Immune Design is developing multiple candidates using its two discovery platforms – ZVex and GLAAS – for the treatment of various types of cancers. Key pipeline candidates include CMB305 (solid tumor) and G100 (merkel cell carcinoma (MCC)).

CMB305 has been designed under a prime-boost approach, involving the sequential dosing of two complementary agents – LV305 and G305.

Presently, CMB305 is being evaluated in soft tissue sarcoma (STS) patients both as monotherapy (phase I) and in combination with Tecentriq (phase II). Early data from the monotherapy phase I study were positive.

The safety profile in the monotherapy phase I study remained favorable with a consistent rate of NY-ESO-1-triggered T cell responses that appear stronger with CMB305.In addition, a randomized phase II study on CMB305, in combination with Roche Holding’s (OTC:RHHBY) Tecentriq in comparison with Tecentriq alone, for locally advanced, relapsed or metastatic soft tissue sarcoma is currently underway. Enrollment in this study is ongoing and the data is expected in 2017.

Meanwhile, G100, developed on the GLAAS platform, completed enrolment in a phase I study in patients with MCC in combination with radiation. Immune Design is collaborating with Merck (NYSE:MRK) to evaluate G100 in combination with its anti-PD-1 agent Keytruda, for the treatment of patients with non-Hodgkin’s lymphoma (NHL). In Feb 2017, the FDA granted Orphan Drug Designation to, G100, for the treatment of NHL.

The company completed a phase I study on G100 in patients with MCC. In addition, it has initiated a randomized phase II study evaluating the safety and efficacy of G100, in combination with low-dose local radiation and Keytruda, in patients with follicular non-Hodgkin’s lymphoma (NHL). Enrollment in the study is ongoing. Data from the evaluation are expected in 2017.

We expect the company to shed light on its progress with these trials during the earnings call.

What Our Model Indicates

Our proven model shows Immune Design is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. This is the case here, as you will see below.

Zacks ESP: Earnings ESP, for Immune Design is 11.29%. This is because the Most Accurate estimate stands at a loss of 55 cents and the Zacks Consensus Estimate is pegged at a loss of 62 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The combination of Immune’s Zacks Rank #3 and 1.29% ESP makes us confident in looking for a positive earnings beat.

Note that we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are healthcare companies that you may consider instead, as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Editas Medicine, Inc. (NASDAQ:EDIT) has an Earnings ESP of +32.26% and a Zacks Rank #3. The company is expected to release results on May 15. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) has an Earnings ESP of +250.00% and a Zacks Rank #3. The company is scheduled to release results on May 9.

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