Progenics Pharmaceuticals (NASDAQ: PGNX) reported a wider loss in the second quarter due to higher costs and expenses despite a jump in revenues. The bottom line missed analysts’ expectations while the top line exceeded consensus estimates.
Total revenues soared by 157% year-over-year to $9.97 million. This was primarily driven by the achievement of a $2 million milestone under the Bayer agreement for initiation of a Phase 1 trial of PSMA TTC and a $4 million upfront payment from FUJIFILM under the aBSI transfer agreement.
Net loss was $19.7 million or $0.23 per share compared to a loss of $15.2 million or $0.20 per share in the previous year quarter.
The clinical trial costs and contract manufacturing costs for clinical trial materials for 1095 and PyL, as well as the transition costs for the Azedra manufacturing site and additional production capacity for iodine-based products, dragged research and development expenses higher by 40%.
Selling, general and administrative expenses increased by 93% due to higher legal and advisory fees, PSMA-617 litigation costs, and costs associated with the build-out of commercial infrastructure to support the launch and distribution of Azedra.
Progenics ended the second quarter with cash and cash equivalents of $84.8 million, a decrease of $52.9 million compared to cash and cash equivalents as of December 31, 2018. This reflected primarily to cash used for operating expenses and for the acquisition of the Somerset manufacturing site for the Azedra launch.
Also read: Alnylam Pharmaceuticals Q2 earnings review
The company said it continued to drive the development of its PSMA-targeted prostate cancer pipeline of diagnostics and therapeutics. Strong interest in its PyL imaging agent resulted in rapid enrollment in its phase 3 Condor study, and Progenics is now looking ahead to a topline data readout by year-end.
Progenics began dosing in its phase 2 trial of 1095 and, assuming early positive data from this open-label trial, sees potential to advance 1095 into a pivotal trial in 2020 following agreement from the FDA. As it continues to grow pipeline and operations, the company remains focused on delivering life-saving treatments for cancer to the patients who need them while creating significant value for shareholders.
Shares of Progenics ended Thursday’s regular session up 1.02% at $4.95 on the Nasdaq. The stock has fallen over 39% in the past year and over 5% in the past three months.