Progenics Q4 Loss Narrower Than Expected - Analyst Blog

Progenics Pharmaceuticals, Inc. PGNX reported a loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 19 cents, but wider than the year-ago loss of 1 cent per share.

Fourth quarter revenues were $2.968 million, down 66.6% from the year-ago quarter. Revenues, however, surpassed the Zacks Consensus Estimate of $2 million.

In 2013, Progenics reported a loss of 76 cents per share, narrower than the year-ago loss of $1.02 per share and the Zacks Consensus Estimate of a loss of 81 cents per share.

Revenues were $7.9 million in 2013, down 44% from the previous year. Revenues surpassed the Zacks Consensus Estimate of $7 million.

Quarterly Details

Progenics' fourth quarter 2013 revenues declined from the year-ago quarter primarily due to lower collaboration revenues.

In the reported quarter, Progenics' revenues primarily comprised royalty income of $2.9 million, up 267.1% from the year-ago quarter. Progenics earned royalties from partner Salix Pharmaceuticals Ltd. SLXP on sales of Relistor (opioid-induced constipation (OIC)). Net sales of Relistor increased 296% sequentially.

Research and development (R&D) expenses increased 32.8% year over year to $7.2 million.

General and administrative (G&A) expenses increased 33.9% year over year to $3.9 million. This increase was primarily driven by a non-cash intangible assets impairment charge.

Pipeline Update

Progenics is working on strengthening its pipeline. In 2014, the company will initiate a study on MIP-1095, an oncology candidate, for the treatment of advanced prostate cancer. Progenics intends to file an Investigational New Drug IND application for MIP-1095 later this year.

Meanwhile, the company is enrolling patients, who have not undergone chemotherapy, in its phase II study on PSMA ADC for the treatment of prostate cancer. Patient enrolment is expected to be completed in the first half of 2014.

Additionally, the company is planning an end of phase II meeting with the U.S. Food and Drug Administration (FDA) for its diagnostic imaging agent, 1404.

Progenics also said that it will resume patient enrolment for a registration study on Azedra early in 2015, for the treatment of pheochromocytoma and paraganglioma. Azedra has orphan drug status in the U.S.

Progenics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector include Alexion Pharmaceuticals, Inc. (ALXN) and Alkermes plc ALKS. Both stocks carry a Zacks Rank #1 (Strong Buy).