Solid Biosciences (SLDB) to PostQ3 Earnings: What's in Store?

Zacks Equity Research
·4-min read

Solid Biosciences Inc. SLDB will provide updates on its pipeline products when it releases third-quarter 2020 results.

The company has an excellent track record, delivering earnings beat in two of the trailing four quarters and missing in the other two. The company delivered a four-quarter average earnings surprise of 2.54%. In the last reported quarter, Solid Biosciences came up with an earnings surprise of 2.50%.

Shares of the company have slumped 23.8% in the year so far compared with the industry’s decline of 4.2%.

 

Let’s see how things are shaping up for the quarter to be reported.

Key Developments

As Solid Biosciences has no marketed product in its portfolio, it does not generate any revenues. The company will thus provide updates on its pipeline products in the third-quarter 2020 earnings call.

The company’s lead pipeline candidate is SGT-001, which is being evaluated for the treatment of Duchenne muscular dystrophy. SGT-001 is a gene transfer candidate under investigation for its ability to drive functional dystrophin protein expression in patients’ muscles and improve the course of the disease.

In October 2020, the company announced that the FDA lifted the clinical hold from its IGNITE DMD phase I/II study of SGT-001. As announced in July, the FDA had requested further manufacturing information and updated safety and efficacy data for all patients dosed, and provided direction on total viral load to be administered per patient. Based on the company’s response to these requests, the FDA acknowledged that the company satisfactorily addressed all clinical hold questions.

In October, Solid Biosciences and Ultragenyx Pharmaceutical Inc. RARE announced a collaboration and license agreement to focus on the development and commercialization of new gene therapies for Duchenne. The parties will collaborate to develop products that combine Solid Biosciences’ differentiated microdystrophin construct, Ultragenyx’s HeLa producer cell line (PCL) manufacturing platform, and AAV8 variants.

Ultragenyx made a $40 million investment in Solid Biosciences and has agreed to pay up to $255 million in cumulative milestone payments per product, upon achievement of specified milestone events, and tiered royalties on worldwide net sales at low-double-digit to mid-teens percentages. The company is expected to provide an update on the same in the third quarter.

The operating expenses are likely to increase in the third quarter based on the activities related with the development of pipeline candidates.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Solid Biosciences this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

Earnings ESP: Solid Biosciences has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks That Warrant a Look

Here are some biotech stocks with the right mix of elements to beat on earnings this time around:

Alkermes Plc. (ALKS) has an Earnings ESP of +142.86% and a Zacks Rank #3.

Alnylam (ALNY) has an Earnings ESP of +4.23% and a Zacks Rank #3. 

 

Solid Biosciences Inc. Price and Consensus

Solid Biosciences Inc. Price and Consensus
Solid Biosciences Inc. Price and Consensus

Solid Biosciences Inc. price-consensus-chart | Solid Biosciences Inc. Quote

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