Yahoo Finance Agios Pharmaceuticals (AGIO) Surges 6.5%: Is This an Indication of Further Gains?
Agios Pharmaceuticals AGIO shares soared 6.5% in the last trading session to close at $45.22. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.9% gain over the past four weeks.
The rise in share price is attributable to the company’s progress with its label expansion studies on sol-marketed Pyrukynd. Earlier this month, management reported that the phase III ENERGIZE-T study, evaluating the drug in transfusion-dependent (TD) thalassemia patients, achieved its primary endpoint of statistically significant reduction in transfusion burden.
Earlier this year in January, Agios reported positive results from the late-stage ENERGIZE study results, which evaluated Pyrukynd in non-transfusion-dependent (NTD) thalassemia patients. This study also achieved its primary endpoint of hemoglobin response along with lower levels of fatigue.
The above results bolster Agios’ plans to seek label expansion for Pyrukynd across all thalassemia sub-types before the end of this year. If approved, a commercial launch in this indication is expected next year. The drug is currently approved to treat adults with pyruvate kinase (PK) deficiency.
This biopharmaceutical company is expected to post quarterly loss of $1.57 per share in its upcoming report, which represents a year-over-year change of -4%. Revenues are expected to be $10.31 million, up 53.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Agios Pharmaceuticals, the consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on AGIO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Agios Pharmaceuticals is part of the Zacks Medical - Products industry. Green Thumb Industries Inc. GTBIF, another stock in the same industry, closed the last trading session 1.5% higher at $11.90. GTBIF has returned 3.3% in the past month.
For Green Thumb Industries Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. This represents a change of +20% from what the company reported a year ago. Green Thumb Industries Inc. currently has a Zacks Rank of #3 (Hold).
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