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Aduro (ADRO) Loss Wider than Expected, Sales Miss in Q4
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Aduro BioTech, Inc. reported fourth-quarter 2016 loss of 44 cents per share, wider than the Zacks Consensus Estimate of a loss of 38 cents. The company had reported earnings of 4 cents per share in the year-ago quarter.
So far this year, Aduro’s shares underperformed the Zacks classified Medical-Biomedical and Genetics industry. Shares of Aduro gained 0.7% during the period, while the industry witnessed an increase of 9.9%.
Since the immunotherapy company does not have any approved product in its portfolio yet, the company’s top line solely comprises collaboration, license and grant revenues.
Quarterly revenues plunged 88.7% year over year to $3.9 million. The top-line deterioration was mainly due to the recognition of milestones and a portion of upfront fees from Johnson & Johnson’s (JNJ - Free Report) subsidiary – Janssen – in 2015. Revenues were marginally below the Zacks Consensus Estimate of $4.0 million.
We note that Aduro has exclusive research and license agreements with Janssen for the development and commercialization of candidates in the LADD platform. These include ADU-741, GVAX for prostate cancer, and ADU-214. Under these agreements, Aduro has granted Janssen exclusive rights to develop and commercialize the LADD candidates for the treatment of prostate and lung cancers.
Research and development expenses declined 7.9% in the quarter to $20.9 million, mainly due to higher license fees paid in 2015.
General and administrative expenses were $8.0 million, down 9% year over year due to lower professional fees paid in 2016.
For the year, the company reported loss of $1.40 per share, which was wider than a loss of 88 cents reported in 2015. Revenues were $50.7 million, down 30.5% year over year.
Pipeline Update
Aduro has a broad pipeline of novel immunotherapies under development for the treatment of a variety of cancers. The most advanced programs from the LADD platform is a combination of CRS-207 – Aduro’s LADD (live, attenuated double-deleted)-based immunotherapy, GVAX Pancreas and Bristol-Myers Squibb Company’s (BMY - Free Report) Opdivo (anti-PD1 checkpoint inhibitor) – that is currently under evaluation in the phase II STELLAR study in patients with metastatic pancreatic cancer. Aduro has also completed enrolment in the initial cohort of the phase Ib study evaluating the combination of CRS-207 and standard-of-care chemotherapy in patients with unresectable malignant pleural mesothelioma. In Jan 2017, Aduro announced a clinical collaboration with Merck & Co., Inc. (MRK - Free Report) to investigate the combination of CRS-207 with Merck’s anti-PD-1 therapy Keytruda for the treatment of gastric cancer. A phase II trial is expected to begin in the first half of 2017.
In Oct 2016, Aduro's shares were hit by a partial clinical hold the FDA had placed on studies evaluating LADD-based agents, bringing patient enrolment to a halt. The decision came after a blood culture sample taken from an indwelling port of a metastatic pancreatic cancer patient tested positive for Listeria. The partial hold was lifted in Nov 2016. With the partial hold lifted, the company has now been able to resume patient enrolment in all Aduro-sponsored studies.
Zacks Rank
Aduro Biotech, Inc. Price, Consensus and EPS Surprise
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Aduro (ADRO) Loss Wider than Expected, Sales Miss in Q4
Aduro BioTech, Inc. reported fourth-quarter 2016 loss of 44 cents per share, wider than the Zacks Consensus Estimate of a loss of 38 cents. The company had reported earnings of 4 cents per share in the year-ago quarter.
So far this year, Aduro’s shares underperformed the Zacks classified Medical-Biomedical and Genetics industry. Shares of Aduro gained 0.7% during the period, while the industry witnessed an increase of 9.9%.
Since the immunotherapy company does not have any approved product in its portfolio yet, the company’s top line solely comprises collaboration, license and grant revenues.
Quarterly revenues plunged 88.7% year over year to $3.9 million. The top-line deterioration was mainly due to the recognition of milestones and a portion of upfront fees from Johnson & Johnson’s (JNJ - Free Report) subsidiary – Janssen – in 2015. Revenues were marginally below the Zacks Consensus Estimate of $4.0 million.
We note that Aduro has exclusive research and license agreements with Janssen for the development and commercialization of candidates in the LADD platform. These include ADU-741, GVAX for prostate cancer, and ADU-214. Under these agreements, Aduro has granted Janssen exclusive rights to develop and commercialize the LADD candidates for the treatment of prostate and lung cancers.
Research and development expenses declined 7.9% in the quarter to $20.9 million, mainly due to higher license fees paid in 2015.
General and administrative expenses were $8.0 million, down 9% year over year due to lower professional fees paid in 2016.
For the year, the company reported loss of $1.40 per share, which was wider than a loss of 88 cents reported in 2015. Revenues were $50.7 million, down 30.5% year over year.
Pipeline Update
Aduro has a broad pipeline of novel immunotherapies under development for the treatment of a variety of cancers. The most advanced programs from the LADD platform is a combination of CRS-207 – Aduro’s LADD (live, attenuated double-deleted)-based immunotherapy, GVAX Pancreas and Bristol-Myers Squibb Company’s (BMY - Free Report) Opdivo (anti-PD1 checkpoint inhibitor) – that is currently under evaluation in the phase II STELLAR study in patients with metastatic pancreatic cancer. Aduro has also completed enrolment in the initial cohort of the phase Ib study evaluating the combination of CRS-207 and standard-of-care chemotherapy in patients with unresectable malignant pleural mesothelioma. In Jan 2017, Aduro announced a clinical collaboration with Merck & Co., Inc. (MRK - Free Report) to investigate the combination of CRS-207 with Merck’s anti-PD-1 therapy Keytruda for the treatment of gastric cancer. A phase II trial is expected to begin in the first half of 2017.
In Oct 2016, Aduro's shares were hit by a partial clinical hold the FDA had placed on studies evaluating LADD-based agents, bringing patient enrolment to a halt. The decision came after a blood culture sample taken from an indwelling port of a metastatic pancreatic cancer patient tested positive for Listeria. The partial hold was lifted in Nov 2016. With the partial hold lifted, the company has now been able to resume patient enrolment in all Aduro-sponsored studies.
Zacks Rank
Aduro Biotech, Inc. Price, Consensus and EPS Surprise
Aduro Biotech, Inc. Price, Consensus and EPS Surprise | Aduro Biotech, Inc. Quote
Aduro carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>