Pharmacyclics, AstraZeneca Partnership Holds Tumor Promise: Citi
November 5, 2014
By Riley McDermid, BioSpace.com Breaking News Sr. Editor
Pharmacyclics, Inc. ’ Imbruvica expansion of its partnership with AstraZeneca PLC has Wall Street analysts excited about the possibilities the new team could hold for potential oncology therapies, said Citigroup Wednesday.
“We expect continued interest on Imbruvica’s potential in immune oncology (IO) and solid tumors with the announcement of a second collaboration with AZN,” wrote Citi biotech analysts Jonathan Eckard and Yaron Werber in a note to investors. “We expect these trials as well as the internal Graft-versus-host disease trial over the next six to 12 months to add clarity of the potential of these combinations and expanded opportunity.”
Citi’s biotech team said that while Imbruvica sales topped consensus, they expect the “debate of the total hematology opportunity” will continue.
“However, with increasing news flow around IO, as well as the BTK inflammation program, we expect the focus on short-term prescription trends to lessen,” said the note.
Pharmacyclics beat all consensus estimates when it reported its third quarter results earlier this month. It had third quarter revenue of $207.1 million, which topped the Wall Street general consensus of $201.5 million, as well as Citi’s projected $205.4 million. The company reported non-GAAP earnings per share of 69 cents, up from a consensus of 44 cents.
Imbruvica sales of $141.6 million were significantly higher than the consensus of $137.3 million and Citi’s own estimate of $142.3 million and “appeared driven by demand,” wrote the analysts. The firm ended the third quarter with $736 million in cash.
Citi also estimates there will be continued competition as combination studies with approved hematology agents continue to gain traction.
“Additionally combinations with Gazyva (anti-CD20) holds potential for increased the chances of a deeper response (MRD), and the recently announced combination programs with PD-1, PD-L1 and PI3K add further breadth to Imbruvica’s reach and potential ingrain the drug in multiple treatment regimens/settings,” the said.
Citi said the initial data in solid tumors “could indicate potential” for Imbruvica to enter an “entirely new and large” commercial opportunity.
