Is OvaScience Inc (NASDAQ:OVAS) Fertile?

OvaScience Inc (NASDAQ:OVAS)

OvaScience Inc (NASDAQ:OVAS) reported financial results for Q4 2016 and updated on its operating and development programs on March 2 after market close. The company’s financial results were a mixed bag. The business update primarily showed the progress the company has made and the next course of action in the development of fertility treatments in its pipeline.

Q4 2016 financial results

OvaScience generated revenue of $121,000 in Q4 2016, down from $157,000 in generate in the same quarter a year earlier. Analysts on the average were expecting revenue of $114,000, as such, OvaScience exceeded topline expectations.

However, the same cannot be said of its bottom line. While EPS loss shrank to $0.64 compared to $0.76 a year earlier, analysts were expecting a much smaller loss of only $0.58 a share.  OvaScience also missed bottom line expectations in the prior quarter.

The company said its R&D expenses in Q4 2016 were $4.7 million, flat from the comparable quarter a year earlier. Expenses related to selling and administration were $10.9 million, down from $14.6 million in the year-ago quarter. The decrease came about as a result of stock-based compensation expenses falling $3.2 million from a year-ago period, and international expansion costs dropping $1.7 million from a year earlier.

OvaScience Inc (NASDAQ:OVAS) ended 2016 with cash and equivalents of $114.4 million.

2017 spending outlook

For full-year 2017, OvaScience is expecting its operations to consume between $45 and $50 million. The estimate factors out one-time expenses in the range of $5.7 – $6.5 million that the company expects to incur in 2017 and 2018 in relations to restructuring it announced in December.

Looking at its budget, OvaScience said it has sufficient funds to run its operations through to Q1 2019 without a need for additional financing.

Pipeline update

OvaScience Inc (NASDAQ:OVAS)’s pipeline includes fertility treatments such as OvaTure and OvaPrime. It said it has enrolled 50 patients into the clinical study of OvaPrime, a potential fertility treatment that aims to boost egg reserve in women whose systems produce no or few eggs. OvaScience intends to enroll 70 patients into the study and it has promised to update on the study outcome of the first 20 patients by the end of 2017.

Its other fertility treatment, OvaTure is in preclinical development.

Stock movements

Shares of OvaScience Inc (NASDAQ:OVAS) retreated 2.01% to $1.52 on Friday. The stock is down nearly 3% since the beginning of 2016 and has declined more than 70% in the trailing 12 months.

03/03/2017
Ticker Symbol OVAS
Last Price a/o, 4:02PM EST  $1.52
Average Volume (mlns) 1.22
Market Cap (mlns)  $55.21
Sales (mlns) $0.70
Shares Outstanding (mlns) 34.86
Share Float (mlns) 32.33
Shortable Yes
Optionable Yes
Inside Ownership 0.80%
Short Float 16.19%
Short Interest Ratio 4.31
Quarterly Return -57.67%
YTD Return -2.61%
Year Return -78.71%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

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.

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