In earnings reports for Triangle area companies, TransEnterix, INC Research and Dova Pharmaceuticals report their latest results with each missing analysts’ expectations. INC Research shares take a pounding.
The details, as reported by North Carolina Business News Wire:
- TransEnterix hopes to begin selling in U.S. in 2018
By Addison Lalier
MORRISVILLE — TransEnterix Inc. said Thursday that it hopes to begin selling its robotic surgical device in the U.S. in 2018.
The company received Food and Drug Administration approval last month. It must notify the FDA of its intent to market a medical device at least 90 days in advance.
“There is a significant opportunity for the Senhance in the U.S., with millions of laparoscopic procedures done each year using basic manual tools,” said CEO Todd M. Pope.
“As we look to 2018, we are focused on the clinical and commercial success of Senhance in the U.S. while continuing to build on our commercial momentum in Europe and Asia.”
For the third quarter of 2017, TransEnterix reported revenue of $183,000, compared to $1.4 million in the same quarter of 2016. The decrease was associated with deferred service revenue from previous system sales, which aren’t reported until clinical use of each system commences.
During the third quarter, TransExterix sold one Senhance system in Taiwan, but does not yet have approval for clinical use. Clearance is expected in 2018.
The company reported quarterly net loss per share of 26 cents, compared to net loss of 11 cents in the third quarter of 2016. Wall Street analysts expected net loss per share of 9 cents.
TransEnterix is a medical device company that uses robotics to improve and facilitate minimally invasive surgery.
- INC Research stock falls 28 percent after third-quarter loss
By Addison Lalier
RALEIGH – Inc Research Holdings Inc. saw its stock price fall as much as 28 percent since Thursday after it reported less-than-expected third-quarter earnings.
Inc Research reported net loss per share of $1.70, while analysts expected earnings of 62 cents per share.
The contract research organization reported a net loss of $148 million in the third quarter compared to net income of $27.3 million in the same quarter of 2016.
Net service revenue in the third quarter increased $332.7 million, or 128.2 percent, to $592.2 million. However, the company’s merger with inVentiv Health in August 2017 accounted for the increase.
“We’re confident in unlocking meaningful value from this combination and remain on target to achieve the $100 million of annual savings by year three while building market momentum,” said CEO Alistair MacDonald in a statement.
“In the clinical segment, our momentum continues with another strong quarter of net awards, illustrating our ability to leverage our complementary customer bases, delivery platforms, and market approaches. While our Commercial segment performance was lower than expected, over time we expect this to improve with potentially more quarterly variability than our CRO business.”
The Raleigh-based company updated its fourth-quarter guidance for 2017. It expects net service revenue to fall between $738 and $768 million, with the majority of revenue coming from its clinical solutions sector.
Inc Research/inVentiv Health is comprised of both a contract research organization and a contract commercial organization.
The company’s stock fell $16.35, or nearly 28 percent, to $41.15 on Thursday after falling as low as $40.05, which was a 52-week low.
Shares fell another 5 percent on Friday.
- Dova Pharmaceuticals reports loss that misses expectations
By Lindsey Welch
DURHAM — Dova Pharmaceuticals Inc. reported a quarterly loss Thursday missed Wall Street expectations, according to a filing with the Securities and Exchange Commission.
The developmental drug company reported a net loss of 38 cents per share, or $9.7 million. Analysts were predicting the loss to be smaller at 32 cents per share with the lowest estimates coming in at 35 cents per share.
“The highlight of the third quarter was the submission of our NDA for avatrombopag to the FDA,” said Chief Executive Officer Alex Sapir in a statement.
He continued, “This submission represents a significant milestone in the advancement of this novel therapy to become a treatment option for the more than 70,000 CLD patients with severe thrombocytopenia in the U.S.”
Research and development expenses were $5.4 million this quarter compared to $6.8 million during the same period last year. The decrease resulted from the conclusion of ADAPT-1 and ADAPT-2 phase 3 clinical trials in January.
Dova is focused on developing treatments for rare diseases with unmet medical needs. The company was formed in March 2016 and went public in June, but it has not produced any revenue to date.
Avatrombopag, the drug submitted for FDA approval in September, was developed to be used as a treatment of patients with chronic liver disease suffering from thrombocytopenia, or low platelet count.