Atea Pharmaceuticals (AVIR) has reported a wider-than-expected loss for the third quarter of 2021. Also, revenues missed analysts’ expectations. Despite the miss, shares of the clinical-stage biopharmaceutical company increased 3.1% in the extended trading session on Thursday.
Results in Detail
The company reported a loss of $0.34 per share against the Street’s loss estimate of $0.05 per share. It had reported a loss of $1.74 per share in the same quarter last year.
Total collaboration revenues generated during the quarter stood at $32.8 million, which fell short of consensus estimates of $53.46 million. The company had reported nil collaboration revenue in the prior-year quarter.
During the quarter, both general and administrative expenses and research and development expenses more than doubled on a year-over-year basis and stood at $11.9 million and $43 million, respectively. (See Atea stock charts on TipRanks)
The CEO of Atea, Jean-Pierre Sommadossi, said, “New infectious virus data from a quantitative, highly-sensitive live virus assay further demonstrate AT-527’s antiviral response potential…These data support the findings from the Phase 2 trial conducted in hospitalized patients.”
Sommadossi added, “In addition to the notable infectious virus data from the MOONSONG study, new in vitro data indicate that AT-511 (free base of AT-527) is active against variants of concern and/or of interest, including Delta. These results, combined with the protocol amendment we are planning, increase our confidence in a favorable outcome for our Phase 3 MORNINGSKY study. We are working expeditiously to submit the MORNINGSKY protocol amendment and are committed to developing and delivering AT-527 as an oral antiviral that will address treatment needs for patients as COVID-19 continues to evolve.”
Wall Street’s Take
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average Atea price target of $15 implies 41% upside potential from current levels. Shares have lost 64% over the past year.
According to the new TipRanks’ Risk Factors tool, the Atea stock is at risk mainly from three factors: Tech and Innovation, Finance and Corporate, and Legal and Regulatory, which contribute 35%, 24%, and 18%, respectively, to the total 89 risks identified for the stock.