ImmunoGen, Inc. (IMGN), a biotechnology company that develops anticancer products, on Friday reported wider-than-expected loss for its second quarter, hurt mainly by higher research and development expenses. Revenues declined sharply from last year on the absence of last year's significant milestone payments, and missed analysts' estimates. Looking ahead, the company continues to project a net loss for the year 2013.
For the second quarter ended December 31, ImmunoGen reported a net loss of $24.39 million or $0.29 per share, compared to prior year's net loss of $12.75 million or $0.17 per share.
On average, 14 analysts polled by Thomson Reuters expected the company to report a loss of $0.25 per share. Such estimates typically exclude special items.
Revenues for the quarter plunged to $2.61 million from last year's $7.62 million that was benefited with $5 million in milestone payments. Analysts projected revenues of $6.02 per share for the quarter.
Operating expenses increased to $27.12 million from $20.39 million last year mainly on higher research and development expenses primarily due to greater investment by the company to aggressively advance its wholly owned product candidates.
Further, ImmunoGen backed its forecast for fiscal year ending June 30, expecting net loss between $70 million to $74 million. In the previous year ended June 30, 2012, the company reported a net loss of $73.3 million or $0.95 per share. Analysts now project loss of $0.90 per share for the year.
The company also projects full-year net cash used in operations between $78 million to $82 million, and its capital expenditures between $4 million to $5 million. Cash and cash equivalents as of June 30 are anticipated to be between $172 million to $176 million.
Lead compound with ImmunoGen's TAP technology, T-DM1, is in global development by Swiss drug-maker Roche Group (RHHBY.PK).
Daniel Junius, President and CEO, said, "We expect 2013 to be a very important year for ImmunoGen. Roche is anticipating the approval of T-DM1 in the US early this year followed by approval in Europe later in 2013. We believe the launch of T-DM1 will be momentous for appropriate patients, their families, and their physicians. It will also mark the start of ImmunoGen earning what we believe will be a significant royalty stream."
In 2013, ImmunoGen expects to report clinical findings with its three lead wholly owned compounds and to advance its fourth compound, IMGN289, into clinical testing.
Junius continued, "We also believe that, in 2013, ImmunoGen's progress on our proprietary pipeline will become more apparent. We believe each of these compounds has the potential to be transformative to the treatment of its targeted cancer and we've designed development programs to advance each compound through proof of concept as promptly as possible."
ImmunoGen shares closed Thursday's trading at $15.35.
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