We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Deciphera Pharmaceuticals, Inc. reported second-quarter 2023 loss of 57 cents per share, narrower than the Zacks Consensus Estimate of a loss of 62 cents. In the year-ago quarter, DCPH had reported a loss of 60 cents per share.
Net revenues were $38.3 million, which beat the Zacks Consensus Estimate of $36 million. The figure rose almost 18.8% year over year.
Shares of Deciphera rallied 6.18% on Aug 9, as the company reported better-than-expected results. The stock has nosedived 16.2% year to date compared with the industry’s decline of 12.2%.
Image Source: Zacks Investment Research
Quarter in Detail
Total revenues comprise of net product revenues and collaboration revenues for Qinlock (ripretinib).
Deciphera’s sole marketed drug, Qinlock, was approved by the FDA in 2020 to treat adult patients with advanced gastrointestinal stromal tumors (GIST), who received prior treatment with three or more kinase inhibitors, including Novartis’ Gleevec (imatinib). Qinlock was approved in Europe in late 2021. Apart from Qinlock, there is no marketed drug in Deciphera’s portfolio.
Net product revenues from Qinlock sales were $37.3 million, up 18.4% year over year. The drug generated sales of $28.9 million and $8.4 million in the United States and the ex-U.S. markets, respectively.
Qinlock’s net product revenues beat both the Zacks Consensus Estimate of $35.09 million and our model estimate of $35 million.
Collaboration revenues totaled $1 million, which was in line with the year-ago quarter’s figure. The top line missed the Zacks Consensus Estimate of $1.26 million but beat our model estimate of $0.3 million.
Research and development expenses (including stock-based compensation) amounted to $58.3 million, up 30% year over year owing to costs related to clinical studies on vimseltinib and Qinlock.
Selling, general and administrative expenses (including stock-based compensation) totaled $32.6 million, up 10.1% year over year owing to increased professional fees, personnel-related costs and consultant fees.
Deciphera had cash, cash equivalents and investments worth $389.4 million as of Jun 30, 2023, compared with $426.3 million as of Mar 31, 2023. The company expects its current cash balance, together with the anticipated product, royalty and supply revenues, excluding any potential future milestone payments under its collaboration or license agreements, to fund its operating and capital expenditures into 2026.
Other Updates
Deciphera is also working to expand the label of Qinlock for the larger commercial opportunity in GIST.
In the reported quarter, the company initiated a phase III INSIGHT study to evaluate Qinlock versus sunitinib for the treatment of second-line GIST patients with mutations in KIT exon 11 and 17/18.
DCPH is evaluating another candidate, vimseltinib, in the phase III MOTION study to treat patients with tenosynovial giant-cell tumors, who are not amenable to surgery. It expects to report results from the study in the fourth quarter of 2023.
This apart, DCPH, in collaboration with Pfizer, Inc. (PFE - Free Report) , initiated new combination escalation studies evaluating DCC-3116 in combination with ripretinib in patients with GIST, and in combination with encorafenib and cetuximab in patients with colorectal cancer. Per the terms of the agreement with Pfizer, Deciphera will bear the cost of the study while Pfizer will supply encorafenib free of cost.
Additionally, DCPH also initiated three expansion cohorts in the ongoing phase I/II study of DCC-3116 in combination with trametinib, binimetinib and sotorasib in patients with advanced solid tumors.
Deciphera Pharmaceuticals, Inc. Price and Consensus
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics has narrowed from a loss of $2.84 per share to a loss of $2.61 for 2023. The consensus estimate has narrowed from a loss of $2.56 per share to a loss of $2.55 for 2024 during the same time frame. Shares of the company have lost 60.9% year to date.
ADCT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 3.25%.
In the past 90 days, the Zacks Consensus Estimate for ImmunoGen has narrowed from a loss of 55 cents per share to a loss of 21 cents for 2023. The consensus estimate has improved from a loss of 31 cents per share to a profit of 3 cents for 2024 during the same time frame. Shares of the company have rallied 189.9% year to date.
IMGN’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 31.24%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Deciphera (DCPH) Q2 Earnings Beat, Qinlock Drives Revenues
Deciphera Pharmaceuticals, Inc. reported second-quarter 2023 loss of 57 cents per share, narrower than the Zacks Consensus Estimate of a loss of 62 cents. In the year-ago quarter, DCPH had reported a loss of 60 cents per share.
Net revenues were $38.3 million, which beat the Zacks Consensus Estimate of $36 million. The figure rose almost 18.8% year over year.
Shares of Deciphera rallied 6.18% on Aug 9, as the company reported better-than-expected results. The stock has nosedived 16.2% year to date compared with the industry’s decline of 12.2%.
Image Source: Zacks Investment Research
Quarter in Detail
Total revenues comprise of net product revenues and collaboration revenues for Qinlock (ripretinib).
Deciphera’s sole marketed drug, Qinlock, was approved by the FDA in 2020 to treat adult patients with advanced gastrointestinal stromal tumors (GIST), who received prior treatment with three or more kinase inhibitors, including Novartis’ Gleevec (imatinib). Qinlock was approved in Europe in late 2021. Apart from Qinlock, there is no marketed drug in Deciphera’s portfolio.
Net product revenues from Qinlock sales were $37.3 million, up 18.4% year over year. The drug generated sales of $28.9 million and $8.4 million in the United States and the ex-U.S. markets, respectively.
Qinlock’s net product revenues beat both the Zacks Consensus Estimate of $35.09 million and our model estimate of $35 million.
Collaboration revenues totaled $1 million, which was in line with the year-ago quarter’s figure. The top line missed the Zacks Consensus Estimate of $1.26 million but beat our model estimate of $0.3 million.
Research and development expenses (including stock-based compensation) amounted to $58.3 million, up 30% year over year owing to costs related to clinical studies on vimseltinib and Qinlock.
Selling, general and administrative expenses (including stock-based compensation) totaled $32.6 million, up 10.1% year over year owing to increased professional fees, personnel-related costs and consultant fees.
Deciphera had cash, cash equivalents and investments worth $389.4 million as of Jun 30, 2023, compared with $426.3 million as of Mar 31, 2023. The company expects its current cash balance, together with the anticipated product, royalty and supply revenues, excluding any potential future milestone payments under its collaboration or license agreements, to fund its operating and capital expenditures into 2026.
Other Updates
Deciphera is also working to expand the label of Qinlock for the larger commercial opportunity in GIST.
In the reported quarter, the company initiated a phase III INSIGHT study to evaluate Qinlock versus sunitinib for the treatment of second-line GIST patients with mutations in KIT exon 11 and 17/18.
DCPH is evaluating another candidate, vimseltinib, in the phase III MOTION study to treat patients with tenosynovial giant-cell tumors, who are not amenable to surgery. It expects to report results from the study in the fourth quarter of 2023.
This apart, DCPH, in collaboration with Pfizer, Inc. (PFE - Free Report) , initiated new combination escalation studies evaluating DCC-3116 in combination with ripretinib in patients with GIST, and in combination with encorafenib and cetuximab in patients with colorectal cancer. Per the terms of the agreement with Pfizer, Deciphera will bear the cost of the study while Pfizer will supply encorafenib free of cost.
Additionally, DCPH also initiated three expansion cohorts in the ongoing phase I/II study of DCC-3116 in combination with trametinib, binimetinib and sotorasib in patients with advanced solid tumors.
Deciphera Pharmaceuticals, Inc. Price and Consensus
Deciphera Pharmaceuticals, Inc. price-consensus-chart | Deciphera Pharmaceuticals, Inc. Quote
Zacks Rank and Other Stocks to Consider
Deciphera currently carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks in the same industry are ADC Therapeutics (ADCT - Free Report) and ImmunoGen , both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the Zacks Consensus Estimate for ADC Therapeutics has narrowed from a loss of $2.84 per share to a loss of $2.61 for 2023. The consensus estimate has narrowed from a loss of $2.56 per share to a loss of $2.55 for 2024 during the same time frame. Shares of the company have lost 60.9% year to date.
ADCT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 3.25%.
In the past 90 days, the Zacks Consensus Estimate for ImmunoGen has narrowed from a loss of 55 cents per share to a loss of 21 cents for 2023. The consensus estimate has improved from a loss of 31 cents per share to a profit of 3 cents for 2024 during the same time frame. Shares of the company have rallied 189.9% year to date.
IMGN’s earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 31.24%.