Infinity Pharmaceuticals Inc. (NASDAQ:INFI)
Shares of Infinity Pharmaceuticals Inc. (NASDAQ:INFI) fell 13.93% after the company reported on its Phase 1 clinical data for IPI-549, an oral selective phosphoinositide-3-kinase-gamma targeting immune-suppressive tumor macrophages. Trial results indicate that the candidate drug was well tolerated and clinically active.
Clinical Trial Results
The sell-off on Infinity Pharmaceuticals Inc. (NASDAQ:INFI) stock comes as a surprise, given that the biopharmaceutical company is fresh from posting a narrower than expected third-quarter net loss. However, the stock is still trading in an uptrend despite coming under pressure in recent trading sessions. The stock is up by more than 60% for the year, as it continues to outperform the overall industry.
The positive IPI-549 and Q3 financial results should affect the stock’s direction of trade heading into the end of the year.
Infinity Pharmaceuticals Inc. (NASDAQ:INFI) is evaluating IPI-549 as a monotherapy and in combination with Opdivo in patients with advanced tumors.
There is a significant need for better treatment options to take care of patients who do not respond to existing immunotherapies.
“In particular, patients with mesothelioma and adrenocortical carcinoma have limited effective treatment options, and our early evidence of activity suggests the potential for IPI-549 to improve outcomes for these patients,” said CEO Adeline Perkins.
Infinity Pharmaceuticals Inc. (NASDAQ:INFI) is to report data from a monotherapy expansion component of the study in the first half of 2018. The company also plans to report data from a combination expansion component in the first half of next year.
Infinity Q3 Financial Results
For the three months ended September 30, 2017, Infinity Pharmaceuticals posted a net loss of (-$7.1) million or (-$0.14) million, compared to a net loss of (-$19.5) million reported last year. Revenue in the quarter totaled $6 million related to amounts due from Verastem for the DUO study.
Restructuring activities in the quarter resulted in research and development expenses dropping to $9.3 million, from $12.8 million reported last year. Infinity Pharmaceuticals exited the quarter with cash and cash equivalent of $55.6 million compared to $66.2 million as of June 30, 2016. General and Administrative expenses also dropped because of the restructuring activities to $4.5 million from $7.1 million a year ago.
For the full year, the biopharmaceutical company is projecting a net loss of between $40 million and $50 million. Cash and cash equivalents should range from $40 million and $50 million.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.