Q3 Revenues Up at Micromet - Analyst Blog

Micromet Inc.'s (MITI) third quarter 2010 loss per share came in at 13 cents, narrower than the year-ago loss of 32 cents. After adjusting for the change in fair value of warrants, the company reported a loss per share of 12 cents, less than the year-ago post adjustment loss of 22 cents.

The Zacks Consensus Estimate hinted at a loss of 19 cents per share. The narrower loss in the reported quarter was attributable to an increase in revenues and a fall in operating expenses.

Revenues at Micromet climbed approximately 66% to $6.7 million. The rise was attributable to the increased revenues generated from collaboration agreements during the reported quarter.  Revenues inched past the Zacks Consensus Estimate of $6 million for the third quarter of 2010.

Operating expenses during the reported quarter fell approximately 5.8% to $16.1 million. The fall was attributable to the reduction in research and development expenses (down 10.9%), which offset the 9% increase in general and administrative expenses.

Pipeline Update

Apart from announcing third quarter results, Micromet also provided an update on its pipeline. The company started a European pivotal study of its lead candidate blinatumomab (MT103) in adults with minimal residual disease (MRD) positive B-precursor acute lymphoblastic leukemia (ALL) in September 2010. The study is designed to evaluate the efficacy, safety and tolerability of the cancer candidate in up to 130 evaluable adults suffering from ALL with MRD after being treated with front-line chemotherapy.

In the same month, Micromet commenced a mid-stage study (n=20) of blinatumomab in adults suffering from relapsed or refractory B-precursor ALL. This study will evaluate the efficacy, safety and tolerability of blinatumomab in patients who do not respond to standard chemotherapy.

Moreover, in October, Micromet's pipeline received a boost when the US Food and Drug Administration (FDA) accepted the investigational new drug (IND) application for its candidate MT111 (MEDI-565). The candidate is being co-developed with MedImmune, a wholly owned subsidiary of AstraZeneca (AZN), to treat patients suffering from advanced gastrointestinal cancers. The study is expected to begin in the first half of 2011. Micromet also intends to advance its candidate, MT112, into formal preclinical development.

Currently, we have a neutral long-term stance on Micromet, which is supported by a Zacks #3 Rank (Short-term Hold recommendation) carried by the company.