The company’s sources of revenue include royalties and license fees from Bausch and other collaborators, and to a small extent, sale of research reagents. Progenics will recognize royalty income primarily based on sales of Relistor, which is used for the treatment of opioid-induced constipation.
Progenics is an oncology company focused on the development and commercialization of innovative targeted medicines and artificial intelligence to find, fight and follow cancer. The company’s strategy also calls for undertaking increased research and development activities and managing an increasing number of relationships with partners and other third parties, while simultaneously managing the capital necessary to support strategy.
The company is expected to incur higher R&D expenses arising from the costs associated with its clinical trials, including pharmaceutical development and manufacturing of clinical trial materials. The costs also include salaries and wages, share-based compensation and benefits, which are not tracked by the program as several of its departments support multiple development programs.
Also read: Alnylam Pharmaceuticals Q2 earnings review
Analysts expect the company to report a loss of $0.19 per share on revenue of $6.66 million for the second quarter. In comparison, during the previous year quarter, Progenics posted a loss of $0.20 per share on revenue of $3.88 million. The company has missed analysts’ expectations in all of the four quarters.
For the first quarter, Progenics reported a wider loss due to higher operating expenses. Total revenues increased by 34% year-over-year as the growth of Relistor sales drove royalty revenue higher. The one-time transition costs for Azedra manufacturing site and higher clinical and contract manufacturing costs for PyL dragged research and development expenses higher.
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