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Agios (AGIO) Q2 Loss Narrower Than Expected, Sales Beat

·5-min read

Agios Pharmaceuticals, Inc. AGIO incurred a loss of $1.68 per share from continuing operations for second-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of $1.78. In the year-ago quarter, AGIO incurred a loss of $1.36 per share.

Quarterly revenues were $5.6 million during the quarter, which beat the Zacks Consensus Estimate of $3.0 million. In the year-ago quarter, the company did not record any revenues.

Quarter in Detail

This February, the FDA approved its lead pipeline candidate mitapivat for hemolytic anemia in adults with pyruvate kinase (PK) deficiency. The drug is being marketed under the trade name Pyrukynd. The drug is also Agios’ first product in its genetically defined diseases (GDD) portfolio to receive marketing approval after the company sold its oncology portfolio to France-based pharmaceutical company Servier last year.

During the second quarter, Agios recorded product sales (entirely from Pyrukynd) of $3.1 million. In the previous quarter, the company generated $0.8 million from drug sales.

Shares of Agios were likely up 14.7% on Aug 4 following the encouraging results for the second quarter, especially the higher-than-anticipated Pyrukynd sales. In fact, the stock has declined 13.0% in the trailing 12 months compared with the industry’s 41.6% fall.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Agios also record $2.5 million as milestone revenue during the quarter. This was received by the company as an upfront payment associated with the licensing of intellectual property for Friedreich’s Ataxia preclinical program.

Research & development expenses increased 20.2% year over year to $74.5 million due to a rise in start-up costs incurred by the company for its clinical studies.

Selling, general and administrative expenses were down 3.3% year over year to $28.3 million, primarily due to the completion of the reimbursable transition services provided by the company to Servier about the sale of the oncology business.

At the end of June 2022, cash, cash equivalents and marketable securities were $1.1 billion compared with $1.2 billion at March 2022-end.

Pipeline Updates

A regulatory application for Pyrukynd to treat adults with PK deficiency is pending with the European Medicines Agency (EMA) and a decision is expected by this year-end.

Apart from PK deficiency, Agios is evaluating Pyrukyndfor SCD and thalassemia indications.

AGIO initiated two phase III studies, namely ENERGIZE and ENERGIZE-T, to evaluate Pyrukyndfor thalassemia in adults, with one segment being not regularly transfused while the other being regularly transfused. Agios plans to complete enrolment in both studies by 2022-end.

AGIO also initiated the phase II/III RISE UP study evaluating Pyrukyndfor SCD. It plans to complete enrolling patients in the study by 2022-end.

Alongside its earnings results, Agios also announced that it initiated two phase III studies, namely ACTIVATE-kids and ACTIVATE-kidsT, which are evaluating Pyrukyndin pediatric patients who are not regularly transfused and are regularly transfused, respectively.

Apart from Pyrukynd, Agios is evaluating AG-946, its next-generation pyruvate kinase-R activator. AGIO is currently evaluating the candidate in a phase I study to treat hemolytic anemia.

Agios also intends to evaluate AG-946 for other indications. While a phase I study to evaluate the candidate for SCD is expected to begin in first-half 2022, a phase IIa study on the candidate for low- to intermediate-risk myelodysplastic syndrome (MDS) is planned to start by the 2022-end.

Agios Pharmaceuticals, Inc. Price

 

Agios Pharmaceuticals, Inc. Price
Agios Pharmaceuticals, Inc. Price

Agios Pharmaceuticals, Inc. price | Agios Pharmaceuticals, Inc. Quote

 

Zacks Rank & Stocks to Consider

Currently, Agios has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the overall healthcare sector include Alkermes ALKS, Jazz Pharmaceuticals JAZZ and Novavax NVAX, each of which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alkermes’ stock has risen 11.4% this year so far. Alkermes’ estimates for 2022 have gone up from a loss of 17 cents per share to earnings of 20 cents per share, while the consensus estimate for 2023 earnings has increased from 31 cents per share to 33 cents per share in the past 30 days.

Alkermes beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 325.48%, on average. In the last reported quarter, ALKS reported an earnings surprise of 50.00%.

Estimates for Jazz Pharmaceuticals’ 2022 earnings have increased from $17.05 to $17.14 in the past 30 days. JAZZ’s earnings estimates for 2023 have increased from $18.05 to $18.19 in the past 30 days. Shares of Jazz Pharmaceuticals have risen 18.7% in the year-to-date period.

Earnings of Jazz Pharmaceuticals beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 10.94%. In the last reported quarter, JAZZ delivered an earnings surprise of 2.38%.

Novavax’s stock has plunged 56.7% this year so far. Novavax’s earnings estimates for 2023 have increased from $10.43 per share to $10.62 per share over the past 30 days.

Novavax missed earnings estimates in each of the last four quarters, delivering a negative earnings surprise of 184.49%, on average. In the last reported quarter, NVAX delivered a negative earnings surprise of 23.12%.


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