Stock Update (NASDAQ:OVAS): OvaScience Inc Reports Third Quarter 2015 Financial Results

OvaScience Inc (NASDAQ:OVAS), a global fertility company focused on the discovery, development and commercialization of new treatment options, today reported third quarter 2015 financial results and highlighted recent accomplishments.

“The recent publication of the AUGMENT patient experiences highlighted the clinical benefit of the treatment in patients with poor fertility prognoses,” said Michelle Dipp, M.D., Ph.D., Chief Executive Officer of OvaScience. “We continue to adapt our commercial operations to reflect rapid changes in the fertility market. Our high-quality, scalable manufacturing and technical operations give us confidence in our ability to expand into new territories, such as Europe and Japan, while building a strong foundation for introducing our other treatments. We remain on track to introduce our OvaPrime treatment this year through a preceptorship program in at least one international region to evaluate its potential in women with too few or no eggs. We also continue to expect to communicate by year end a development pathway for OvaTure, our next-generation, hormone-free approach to IVF.”

Third Quarter and Recent Highlights

  • AUGMENTSM Treatment Peer-Reviewed Publication Showed Statistically Significant Improvements in Embryo Selection and Transfer Compared to Standard IVF
    First published analysis comparing the AUGMENT treatment to standard IVF using an egg allocation method demonstrated statistically significant higher rates of embryo selection and transfer with the AUGMENT treatment based on standard embryo quality measures, including preimplantation genetic diagnosis/screening. Improved pregnancy rates with the AUGMENT treatment were also reported in the publication. These positive results were published in the Journal of Fertilization: In Vitro– IVF-Worldwide and presented at a recent scientific symposium. Additionally, physicians offering the AUGMENT treatment reported 20 babies born with the treatment to date. The AUGMENT treatment is not available in the United States.
  • Hosted Scientific Symposium for Healthcare Providers on Advances in Egg Health
    Participated in the American Society for Reproductive Medicine (ASRM) Annual Meeting and held a scientific symposium focused on educating clinicians on the importance of egg health and new advances in fertility. The event featured experts on the role of mitochondria for healthy embryogenesis and the potential of egg precursor (EggPCSM) cells for developing novel fertility treatments. In addition, a summary of the first published AUGMENT treatment patient experience was presented.
  • On Track to Introduce the OvaPrimeSM Treatment Through Preceptorship Program
    Company expects to meet goal of introducing the OvaPrime treatment to patients through a preceptorship program in at least one international region outside the United States by year end. This initial preceptorship program is a non-commercial training period in which physicians gain clinical experience using the OvaPrime treatment to replenish the ovarian reserve in women who make too few or no eggs. The Company expects physicians will share their initial patient experiences as clinically meaningful insights become available.
  • Advanced Development Plans for the OvaTureSM Treatment
    Finalizing plans for the further development of the OvaTure treatment, a next-generation fertility treatment designed to grow fresh, healthy eggs without the need for hormone injections. OvaScience still anticipates that by year end the Company will define its strategy for developing the OvaTure treatment outside the United States.

Third Quarter Financial Results

  • Net loss for the three months ended September 30, 2015 was $17.9 million, or ($0.66) per share, as compared to net loss of $12.9 million, or ($0.54) per share, for the three months ended September 30, 2014. This included non-cash stock-based compensation expense of $3.7 million. The increase in net loss is primarily attributable to planned higher personnel costs, stock-based compensation, and costs associated with the launch of the AUGMENT treatment in certain international IVF clinics. Launch costs include legal and consulting services and establishment of lab-based operations, which will also support introductions of future fertility treatments.
  • Research and development expense for the three months ended September 30, 2015 was $4.0 million, compared to $5.3 million for the same period in 2014. This decrease is primarily driven by a decrease of $0.8 million related to the stock-based compensation expense recorded in the prior year, including $1.1 million for Founders’ stock, which was fully expensed in the first quarter of 2015 and will not recur, and $0.4 million in certain collaboration agreements and research grants, which expired prior to the current period.
  • Selling, general and administrative expense for the three months ended September 30, 2015 was $12.9 million, as compared to $7.1 million for the same period in 2014. This increase was primarily a result of $2.6 million for employee compensation and related benefits, including stock-based compensation expense driven by the hiring of additional personnel, $2.6 million of costs associated with the launch of the AUGMENT treatment and international growth, $0.4 million in facilities expenses, and $0.2 million in accounting, tax and other expenses.

At September 30, 2015, OvaScience had cash, cash equivalents and short-term investments of $141.7 million.

Upcoming Events and Presentations

Shares of OvaScience closed today at $13.13, down $1.04 or 7.34%. OVAS has a 1-year high of $55.69 and a 1-year low of $7.90. The stock’s 50-day moving average is $13.71 and its 200-day moving average is $24.20.

On the ratings front, OvaScience has been the subject of a number of recent research reports. In a report issued on October 21, Oppenheimer analyst Rohit Vanjani reiterated a Buy rating on OVAS, with a price target of $16, which represents a potential upside of 21.9% from where the stock is currently trading. Separately, on September 8, Wedbush’s Zarak Khurshid reiterated a Buy rating on the stock and has a price target of $46.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Rohit Vanjani and Zarak Khurshid have a total average return of 24.3% and -6.2% respectively. Vanjani has a success rate of 64.4% and is ranked #57 out of 3824 analysts, while Khurshid has a success rate of 51.9% and is ranked #3499.

OvaScience Inc is a life science company engaged in discovery, development, and commercialization of new fertility treatments. Its patented technology is based on egg precursor cells found in the outer layer of a woman’s own ovaries.


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