Progenics Pharmaceuticals, Inc.'s (NASDAQ: PGNX) shares gained 8.9% immediately after the company reported first quarter 2014 results. Overall, shares are up 10.8% since the company released first quarter results.
The company reported first quarter 2014 loss of 15 cents per share, narrower than the year-ago loss of 22 cents per share, but wider than the Zacks Consensus Estimate of a loss of 13 cents per share.
First quarter revenues decreased 18.5% from the year-ago quarter to $1.8 million, well below the Zacks Consensus Estimate of $4 million.
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The Quarter in Detail
In the reported quarter, net sales from Relistor were down 37.7% to $4.8 million from the year-ago quarter. In the U.S., sales were down 46.3% to $3.6 million year over year due to adjustments being made by wholesalers in their inventory level as a result of higher sales achieved in the fourth quarter of 2013.
R&D expenses decreased 20.5% year over year to $6.9 million. This decrease was primarily due to lower compensation expense, partially offset by higher expenses for pipeline development and contract manufacturing expenses for 1404 and Azedra.
G&A expenses decreased 9.8% to $3.9 million from the year-ago quarter. This was mainly driven by lower operating expenses as well as consulting and professional fees.
Pipeline Update
The European Medicines Agency (EMA) accepted Progenics and its partner Salix's (NASDAQ: SLXP) application for Relistor subcutaneous injection for the treatment of patients suffering from opioid-induced constipation with chronic pain. The FDA's Advisory Committee meeting to review the supplemental New Drug Application for Relistor for the same indication is scheduled for Jun 11 or 12.
Meanwhile, Progenics finished enrolling 36 chemotherapy naive patients in a phase II study on PSMA ADC for the treatment of prostate cancer. Results from this study are expected in late 2014 or early 2015.
Progenics will resume a pivotal phase II study on Azedra for the treatment of pheochromocytoma and paraganglioma under the FDA's Special Protocol Assessment (NYSE: SPA) program. The company will begin patient enrolment later this year or early next year. Azedra has orphan drug status in the U.S.
Progenics currently carries a Zacks Rank #3 (Hold). We expect investor focus to remain on the Relistor update. Some better-ranked stocks in the health care sector include ANI Pharmaceuticals, Inc. (NASDAQ: ANIP) and Gilead Sciences Inc. (NASDAQ: GILD). Both carry a Zacks Rank #1 (Strong Buy).
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