ZIOPHARM Oncology Inc. (NASDAQ: ZIOP)
ZIOPHARM Oncology is having an incredibly strong day in the market today, and for good reason. Yesterday, after the closing bell, the company reported its earnings for the first quarter. While earnings were a miss, revenue beat expectations. However, that wasn’t the focus of the report. The reason we’re seeing gains has to do with the company’s advancement with regard to prospective cell therapies. Today, we’ll talk about what we saw from the report, how investors are reacting to the news, and what we can expect to see from ZIOP moving forward.
ZIOP Releases First Quarter Results
As mentioned above, ZIOPHARM Oncology is having an incredible day in the market today after releasing its quarterly results for the first quarter yesterday. Here’s what we saw from the report…
- Earnings – In terms of earnings, ZIOP came in slightly below analyst expectations. During the quarter, analysts expected that the company would generate a loss of $0.08 per share. However, the company actually reported that the loss came in at $0.09 per share, missing expectations by $0.01.
- Revenue – While earnings proved to be a slight miss, revenue came in slightly ahead of expectations. During the quarter, analysts expected that ZIOPHARM Oncology would generate a total of $1.89 million in top-line revenue. However, the company reported that revenue came in at $1.97 million.
- Key Update – Based on the data above, the earnings report was a bit of a wash. However, there was one thing that really excited investors. The company is progressing on track with regard to its prospective cell and gene therapies. In the long run, these therapies will likely lead to incredible profits. So, investors were excited to hear the news. In a statement, Laurence Cooper, M.D., Ph.D., CEO at ZIOP had the following to offer…
“We have solid momentum in each of our cell and gene therapy programs, with the potential to move our lead gene therapy, Ad-RTS-IL-12 + veledimex, into a pivotal study next year… Ad-RTS-IL-12 + valedimex continues to yield encouraging results as we recruit additional patients into an ongoing dose-escalation study in recurrent glioblastoma, and we look forward to presenting this data to the American Society of Clinical Oncology (ASCO) at its annual meeting in June of this year. Given the dire outcomes in this patient population, a potential therapeutic benefit may be quickly assessed and, if the results remain durable, our goal would be to move into a registration study, following discussions with regulators.”
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time we see positive news with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company as a result. Naturally, following news of strong progression in both gene and cell therapies the company is working on, investors are overwhelmingly excited. Currently (11:04), ZIOP is trading at $8.26 per share after a gain of $0.78 per share or 10.43% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish expectation of what we can expect to see from ZIOPHARM Oncology. The reality is that the company is progressing in a great way when it comes to the gene and cell therapies it is working on. With the strong results, it only makes sense that at least a few of these therapies will make it through FDA approval, leading to strong revenue. All in all, I am expecting to see long run gains in ZIOP.
What Do You Think?
Where do you think ZIOP is headed moving forward and why? Let us know your opinion in the comments below!