Antibody-drug conjugate developer ImmunoGen (NASDAQ:IMGN) reported disappointing third-quarter earnings results before the opening bell this morning, delivering a decline in revenue, a considerably wider loss, and lowering its outlook for the year.
For the quarter, ImmunoGen brought in $6.9 million in revenue, a 72% drop from the year-ago quarter where it netted $25 million. Understandably, a good chunk of its revenue last year was due to an amortized upfront license fee from Novartis, and a milestone payment from Roche (NASDAQOTH:RHHBY).
This year's $6.9 million includes $2.6 million in royalty payments from Roche for sales of breast cancer therapy Kadcyla, $1.9 million in research and development support fees, and $2.1 million in clinical materials revenue. ImmunoGen notes that total sales for Kadcyla, it's only FDA-approved partnered compound, totaled $115 million in the first quarter of 2014 based on Roche's report.
ImmunoGen's bottom line, however, rocketed in the wrong direction with its loss ballooning almost 2,600% to $37.5 million, or $0.44 per share, from a loss of just $1.4 million, or $0.02 per share, in the year-ago quarter. To blame was a 68% spike in operating expenses to $44.3 million, led by an 80% rise in R&D expenses, as well as a 20% boost in selling, general and administration expenses tied to a higher number of employees and patent expenses.
Looking ahead, ImmunoGen updated its financial guidance for the year by reducing its revenue outlook to a range of $60 million-$64 million from prior guidance of $71 million-$75 million, and increased its net loss estimate to $71 million-$75 million from a previous projection of $67 million-$71 million. If there was a bright spot it was a lower operating expense forecast of $133 million-$137 million compared to the $140 million-$144 million it had been expecting. ImmunoGen anticipates ending the year with cash and cash equivalents of $134 million-$138 million.