Deciphera (DCPH) Reports Narrower-Than-Expected Q4 Loss

Deciphera Pharmaceuticals, Inc. DCPH reported a loss of $1.10 per share for fourth-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of $1.16 and the year-ago loss of $1.31.

Total net revenues were $19.5 million for the quarter, which marginally beat the Zacks Consensus Estimate of $19 million. In the fourth quarter of 2019, the company did not generate revenues.

For fourth-quarter 2020, total revenues included $18.5 million of net product revenues of Qinlock in the United States and ex-U.S. sales of Qinlock of $1.0 million.

Shares of the company have decreased 30.3% in the past year against the industry’s 16.3% rally.

Quarter in Details

Research and development expenses were $52.3 million, up 2.1% year over year. The increase was mainly due to personnel costs and clinical trial expenses related to vimseltinib, rebastinib, DCC-3116 and the phase III INTRIGUE study in second-line gastrointestinal stromal tumor (GIST).

Selling, general and administrative expenses were $30.1 million, up 27% from the year-ago quarter. The increase was due to personnel costs and external spending associated with commercial preparedness, along with the launch of Qinlock, increased expenses incurred in connection with Deciphera’s new headquarters that commenced operations in October 2019, and technology-related costs to support business growth.

Full-Year 2020 Results

The company reported a loss of $4.78 per share for full-year 2020, narrower than the Zacks Consensus Estimate of a loss of $4.84 but wider than the year-ago loss of $4.48.

Total revenues for full-year 2020 were $42.1 million, which includes $39.5 million in sales of Qinlock and $2.6 million in collaboration revenues. Revenues surpassed the Zacks Consensus Estimate of $41.8 million and exceeded the year-ago figure of $25 million.

Pipeline Update

The company completed ennrolment in the INTRIGUE phase III study evaluating the efficacy and safety of Qinlock compared to Pfizer’s PFE Sutent (sunitinib) in patients with second-line GIST. Top-line results for this study are expected in the second half of 2021.

Deciphera received validation from the European Medicines Agency (EMA) for the marketing authorisation application for Qinlock in fourth-line GIST. An EMA approval is expected in the second half of 2021.

Zacks Rank & Stocks to Consider

Deciphera currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the healthcare sector include Acorda Therapeutics Inc. ACOR and Anavex Life Sciences Corp. AVXL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acorda’s loss per share estimates have narrowed from $9.66 to $8.48 for 2020 and from $9.60 to $7.33 for 2021 over the past 60 days.

Anavex’s loss per share estimates have narrowed from 48 cents to 46 cents for 2021 over the past 60 days. Shares of the company have increased 274.8% in the past year.

Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Deciphera Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Deciphera Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Deciphera Pharmaceuticals, Inc. Quote

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