Epizyme (EPZM) Tops Q1 EPS by 23c, Revenues Miss

Epizyme (NASDAQ: EPZM) reported Q1 EPS of ($0.51), $0.23 better than the analyst estimate of ($0.74). Revenue for the quarter came in at $1.35 million versus the consensus estimate of $3.68 million.

First Quarter 2020 Financial Results

• Cash Position: Cash, cash equivalents and marketable securities were $376.5 million as of March 31, 2020, as compared to $381.1 million as of December 31, 2019.
• Revenue: Total revenue for the first quarter of 2020 was $1.4 million, comprised of $1.3 million in net sales of TAZVERIK in the U.S. from the first two months of commercialization following its launch in January 2020 and $0.1 million in collaboration revenue, compared to $4.3 million in collaboration revenue for the fourth quarter of 2019, which was primarily due to revenue associated with services performed under the company\'s multi-target research collaboration with Boehringer Ingelheim.
• Operating Expenses: Total GAAP operating expenses were $52.7 million for first quarter of 2020, compared to $61.8 million for the fourth quarter of 2019. Total non-GAAP adjusted cash operating expenses, were $45.7 million for the first quarter of 2020, compared to $45.2 million for the fourth quarter of 2019.
  • R&D expenses: GAAP R&D expenses were $25.2 million for the first quarter of 2020, compared to $38.3 million for the fourth quarter of 2019, while non-GAAP adjusted R&D expenses were $22.9 million for the first quarter of 2020, compared to $25.8 million for the fourth quarter of 2019. The decrease was primarily due to one-time expenses related to the company’s Oncology Drug Advisory Committee (ODAC) meeting and FL NDA submission in the fourth quarter of 2020.
  • SG&A expenses: GAAP SG&A expenses were $26.9 million for the first quarter of 2020, compared to $23.5 million for the fourth quarter of 2019, while non-GAAP SG&A adjusted expenses were $22.5 million for the first quarter of 2020, compared to $19.4 million for the fourth quarter of 2019. The increase was primarily due to expenses related to the company’s buildout of its salesforce and infrastructure to support its commercial launch of TAZVERIK for the ES indication and expansion of its infrastructure to support a potential launch in FL.
• Net Loss (GAAP): Net loss attributable to common stockholders was $50.9 million, or $0.51 per share, for the first quarter of 2020, compared to $56.4 million, or $0.59 per share, for the fourth quarter of 2019.

“The first quarter of 2020 was significant for Epizyme, marked by the FDA approval of TAZVERIK™ in eligible patients with epithelioid sarcoma and our transition to a commercial-stage company,” said Robert Bazemore, president and chief executive officer of Epizyme. “Despite the global challenges as a result of the COVID-19 pandemic, and the continued uncertainties in the recovery process, we know that patients with cancer still need better treatments, and we remain committed to advancing innovative medicines on their behalf. In addition to continuing our commercialization of TAZVERIK for epithelioid sarcoma, a critical activity for our organization, we are preparing to launch in follicular lymphoma, should TAZVERIK be approved for that indication. We believe strongly in TAZVERIK’s potential to make a meaningful impact in the lives of patients.”

Financial Guidance

Based on its current operating plans, Epizyme continues to believe that its existing cash, cash equivalents and marketable securities will fund the company’s operations into at least 2022. The company expects its non-GAAP adjusted operating expenses for 2020 will be between $235 and $255 million, which excludes any milestone payments paid by the company and non-cash items, such as stock-based compensation and amortization or depreciation of intangibles.

For earnings history and earnings-related data on Epizyme (EPZM) click here.

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