Antibody-drug conjugate developer ImmunoGen (IMGN) reported its second-quarter earnings results before the opening bell today, and early indications continue to point toward ADC technology being the next wave of cancer treatments based on these results.
For the quarter, ImmunoGen reported revenue of $30.1 million, which was up more than tenfold from the $2.6 million reported in the year-ago period. More importantly, ImmunoGen delivered net income of $0.04 per share, reversing a year-ago loss of $0.29 per share.
The big revenue driver in the second quarter for ImmunoGen was amortized revenue recognition from licensing pacts with a number of partners, including Novartis, Roche (RHHBY -2.00%), and Amgen. According to ImmunoGen's figures, $25.7 million of its $30.1 million in revenue was because of licensing and milestone fees. With seven clinical partners, amortized license and milestone fees have become somewhat of a regular occurrence for shareholders around earnings time.
ImmunoGen's one FDA-approved drug is Kadcyla, a therapy to treat HER2-positive late-stage breast cancer, and, based on Roche's earnings results earlier this week, it delivered approximately $250 million in worldwide sales in 2013 since being approved in February. ImmunoGen, as a royalty interest holder in the drug, recognized $2.3 million in royalty revenue from growing Kadcyla sales during the quarter.
As most biotech companies do, ImmunoGen spent time also updating its pipeline. What investors should keep their eyes on are two clinical updates of in-house compounds IMGN853 and IMGN529 by mid-2014.
Looking ahead, ImmunoGen sees fiscal 2014 full-year revenue of $71 million to $75 million with a net loss of $67 million to $71 million, which is unchanged from its previous guidance. However, ImmunoGen did lower its expected net cash used in operations forecast to a range of $64 million to $68 million from prior projections of $69 million to $73 million.
