Cell Genesys shares jump on as 1Q results top Wall Street
NEW YORK—Shares of Cell Genesys Inc. jumped Friday after the biotech company reported a narrower first-quarter than Wall Street expected.
The stock rose 63 cents, or 16.2 percent, to close at $4.53. Shares have traded between $1.78 and $4.77 over the last 52 weeks.
During the first quarter, the company lost $22.6 million, or 29 cents per share, compared with a loss of $29.4 million, or 49 cents per share, during the same period a year prior. Revenue surged to $13.4 million from $1.3 million.
Analysts polled by Thomson Financial expected a loss of 42 cents per share.
The sharp increase in revenue came from $12 million from the December sale of the company's lentiviral gene delivery technology to GBP IP, LLC, the majority shareholder of Lentigen Corp.
Cell Genesys is currently developing an immunotherapy treatment for prostate cancer and has partnered with Japan-based Takeda Pharmaceuticals for the drug.
"It is our belief that Cell Genesys' fundamentals continue to strengthen, especially after the very positive global deal signing with Takeda for GVAX prostate," said Canaccord Adams analyst Joseph Pantginis, in a note to investors.
He reaffirmed a "Buy" rating with a $7 price target.
