Commercial-stage biopharma stock Y-mAbs Therapeutics Inc (US:YMAB), reported fourth quarter and full year 2022 results on Thursday post market, sending shares up 12.5% in extended trading to $3.70 a piece.

Any further YMAB share price rally on Friday will likely be marginal when considering the stock is trading more than 90% below its highs reached during the pandemic above $50. The main driver of weakness over the last year occurred in late October 2022 when the FDA voted that omburtamab did not have enough efficacy evidence to support an OS claim.

The company’s DANYELZA franchise showed significant progress during the quarter, with record net revenues of $16.4 million, growing 31% over Q3 sales. DANYELZA has been conditionally approved in China, with a planned launch in the first half of 2023.

Street Beat

New York-based Y-mAbs generated sales of $31.5 million for the final quarter of 2022, growing 228% over the prior year’s quarter and beating the streets’ forecast of around $20 million. During the three months the YMAB recognized a regulatory-based milestone payment received of $15.0 million from SciClone Pharmaceuticals International as part of the DANYELZA approval in China.

The company spent $19.8 million in research and development, falling from $28.7 million in the prior year. Management said the decrease reflected lower spending required for clinical trials and outsourced research, supplies and other costs relating to manufacturing services.

By the close of Q4, YMAB had successfully transported DANYELZA to 48 centers across the United States, marking a 12% rise in the number of centers since Q3 2022.

At the bottom line, YMAB generated positive net income of $1.16 million or EPS of $0.03 per share, rising from a net loss of -$35.76 million in Q4 of 2024 and significantly beating analyst polled estimates of around -$0.44 per share.

Surprise History

The chart above from the Fintel earnings page for YMAB shows the history of earnings beats and misses versus market expectations for the last three years.

YMAB’s restructuring plan, which includes prioritizing resources on the DANYELZA franchise and development of their SADA technology, resulted in a 35% reduction in force and an anticipated 28% reduction in annual operating expenses for 2023.

With $105.8 million in cash and cash equivalents, YMAB is expected to have sufficient funding to support business operations as planned into the first quarter of 2026.

Management reiterated its 2023 financial guidance including anticipated DANYELZA net product revenues of $60-$65 million, anticipated operating expenses of $115-120 million, and anticipated total annual cash burn of $50-55 million.

Two-fold Recovery

Canaccord Genuity analyst Bill Maughan thinks shares are significantly undervalued considering where the stock is currently trading and with Danyelza profitable as a standalone enterprise.

Maughan added that he thinks the SADA program has appealing upside but will take some time for initial data to come through. The analyst maintained his buy call on the stock but slightly reduced his target price from $20 to $18 post result.

Fintel’s consensus target price of $10.58 suggests the stock could recover over 220% this year.

Research on the Fintel platform highlighted YMAB has experienced declining levels of institutional interest in recent months. This is reflected in the bearish Fund Sentiment Score of 16.01 which ranks YMAB in the bottom 5% out of 36,675 globally screened securities.

This article originally appeared on Fintel

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