It has been about a month since the last earnings report for ImmunoGen (IMGN). Shares have added about 18.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ImmunoGen due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
ImmunoGen Beats Earnings & Revenue Estimates in Q2
ImmunoGen reported loss of 29 cents per share for the second quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of 32 cents and the year-ago loss of 31 cents. The loss includes a restructuring charge of $19.3 million.
Revenues came in at $15.5 million in the quarter, beating the Zacks Consensus Estimate of $10.3 million. Revenues also increased from the year-ago quarter figure of $9.3 million. The second quarter of 2019 included $10.4 million in non-cash royalty revenues. The company recorded $5.1 million in license and milestone payments, which included a milestone payment of $5 million from Roche. Revenues from research and development (R&D) support were $0.05 million.
Operating Expenses & Cash Details
During the quarter, R&D expenses decreased almost 26.1% from the year-ago level to $28.6 million due to lower costs related to clinical development of mirvetuximab soravtansine and reduction in personnel expenses due to restructuring initiatives. General and administrative expenses were up less than 1% to $8.7 million in the second quarter of 2019. However, total operating expenses increased 17.8% year over year as the company recorded $19.3 million as restructuring charge. The restructuring plan was announced in June.
ImmunoGen’s cash and cash equivalents decreased to $239.8 million at the end of June 2019 compared with $270.4 million at the end of March 2019.
2019 Guidance
ImmunoGen provided its guidance for 2019 along with the second-quarter earnings release. The company expects full-year revenues to be in the range of $40-$45 million, similar to what was guided earlier on the fourth-quarter earnings call. The company expects its operating expense to be between $175 million and $180 million, much lower than the previously guided range of $265-$270 million. The company expects its cash and cash equivalents to be between $165 million and $170 million at 2019 end. It expects its cash resources to be enough to fund its operation through the release of top-line results from the phase III study on mirvetuximab soravtansine, expected in the first half of 2022.