Boston, MA, 03/07/2014 – Agios Pharmaceuticals Inc (NASDAQ:AGIO) reported a loss in its fiscal 2013. Yet the stock managed to gain significantly. There must be more than meets they and it is better we get to the bottom of this.
But first, shares of the biopharma escalated to a high of 42.92 in the last session, but later settled at $39.93 with a gain of 26.2 percent.
It was clear from the stock performance that investors were not looking into the current performance results, but how the future of the company was shaping up to be. Let’s take a recap of the earnings data to find out how they would have affected the stock performance all other news notwithstanding.
Fourth quarter results
Agios Pharmaceuticals Inc (NASDAQ:AGIO) was expected by analysts polled by Thomson Reuters to generate revenue of $6 million, but the company went ahead to beat that expectation by posting $6.7 million revenue in the fourth quarter. However, the latest revenue figure was about flat with the revenue figure that was realized over the same period a year ago. Total revenue in 2013 was $25.5 million, but the year delivered a loss of $39.4 million.
Despite the recorded loss, Agios Pharmaceuticals Inc (NASDAQ:AGIO) stated that it is having enough cash to last it through late 2016. The company had cash of $194 million as of the end of 2013.
News that kept the stock in gains
Agios Pharmaceuticals Inc (NASDAQ:AGIO) was able to get traders betting positively on its stock due to the upcoming presentation of clinical data from Phase I study of its anticancer drug AG-221. The drug is being targeted for the treatment of blood cancer.
The company will be making its first annual presentation since it went public. The presentation will take place at the American Association of Cancer Research annual meeting in April. Agios Pharmaceuticals Inc (NASDAQ:AGIO) is expected to provide a glimpse into the effectiveness of the drug.
The market opportunity for cancer drugs is huge and companies making positive advancement in anticancer drug studies are often judged by their potential than current results. And this is where Agios Pharmaceuticals Inc (NASDAQ:AGIO) stands. Investors should keep a close eye on the stock to see what comes out of the April meeting.