Why Is Agenus (AGEN) Up 51.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Agenus (AGEN). Shares have added about 51.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Agenus due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Agenus Earnings and Revenues Beat Estimates in Q1

Agenus reported first-quarter 2020 loss of 31 cents per share, narrower than the Zacks Consensus Estimate of a loss of 35 cents. However, the figure came in against the year-ago quarter’s earnings of 12 cents.

The company generated revenues of $15.1 million including non-cash royalties and other revenues, down from $80 million reported in the year-ago quarter. The top line too beat the Zacks Consensus Estimate of $12 million.

Quarterly Highlights

Research and development expenses decreased 9.5% year over year to $36.3 million. General and administrative expenses dipped 1.8% to $10.6 million.

Pipeline Update

Agenus announced that the FDA has granted a Fast Track status to the combination of its CTLA-4 antibody zalifrelimab and PD-1 antibody balstilimab for the treatment of patients with relapsed/refractory metastatic cervical cancer. Notably in April 2020, the FDA also granted a Fast Track designation to balstilimab for the treatment of advanced cervical cancer.

The company expects to file two biologics license applications (BLAs) seeking accelerated approval of the balstilimab + zalifrelimab combo and balstilimab monotherapy for metastatic cervical cancer.

In January 2020, Agenus initiated a phase I study on AGEN1223, a novel bi-specific antibody, designed to deplete regulatory T cells in the tumor microenvironment.

Notably, GlaxoSmithKline plc’s herpes zoster vaccine, Shingrix, which contains Agenus' proprietary immune adjuvant QS-21 Stimulon, achieved more than $2 billion in revenues during 2019.

Meanwhile, Agenus is advancing the clinical development of an allogeneic iNKT therapy for the treatment of cancer and COVID-19.

How Have Estimates Been Moving Since Then?

Estimates review followed an upward path over the past two months. The consensus estimate has shifted 10.1% due to these changes.

VGM Scores

At this time, Agenus has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Agenus has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Agenus Inc. (AGEN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.