Zacks Investment Research Downgrades Epizyme (EPZM) to Sell

Epizyme (NASDAQ:EPZM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Epizyme is in the process of reopening enrollment in all of its company-sponsored trials in the United States, including the follicular lymphoma (FL) EZH2 activating mutation cohort of its phase II non-Hodgkin lymphoma study for its lead candidate, tazemetostat's clinical studies after the FDA lifted partial clinical hold on it. Further, the company also delayed the filing of its first NDA for tazemetostat for the treatment of epithelioid sarcoma to the first half of 2019, instead of the fourth quarter of 2018. With no approved product in its portfolio, Epizyme is yet to generate revenues. However, the company's is making efforts to develop tazemetostat for a number of hematological malignancies and genetically defined solid tumors. The company presented encouraging new clinical data regarding tazemetostat’s anti-tumor activity and tolerability in follicular lymphoma and mesothelioma. Loss estimates have narrowed ahead of Q3 release.”

Other equities analysts have also issued reports about the stock. HC Wainwright reaffirmed a “buy” rating and set a $25.00 target price on shares of Epizyme in a report on Wednesday, June 27th. Cann reaffirmed a “buy” rating and set a $27.00 target price on shares of Epizyme in a report on Thursday, August 2nd. Cowen reaffirmed a “buy” rating on shares of Epizyme in a report on Monday, September 24th. SunTrust Banks lifted their target price on shares of Epizyme to $25.00 and gave the company a “buy” rating in a report on Tuesday, September 25th. Finally, Morgan Stanley set a $12.00 target price on shares of Epizyme and gave the company a “hold” rating in a report on Friday, September 7th. Three research analysts have rated the stock with a sell rating, two have issued a hold rating and eight have given a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $21.00.

NASDAQ:EPZM opened at $8.83 on Tuesday. The company has a market cap of $736.73 million, a PE ratio of -4.05 and a beta of 1.65. Epizyme has a 1-year low of $8.61 and a 1-year high of $21.40.

Epizyme (NASDAQ:EPZM) last posted its earnings results on Thursday, August 2nd. The biopharmaceutical company reported ($0.42) earnings per share for the quarter, beating the consensus estimate of ($0.53) by $0.11. The firm had revenue of $12.00 million for the quarter, compared to analysts’ expectations of $0.54 million. Epizyme’s revenue for the quarter was up 20.0% compared to the same quarter last year. During the same period last year, the firm earned ($0.48) earnings per share. As a group, sell-side analysts anticipate that Epizyme will post -2.14 earnings per share for the current year.

In related news, Director David M. Mott purchased 416,667 shares of the company’s stock in a transaction that occurred on Friday, October 5th. The shares were purchased at an average price of $9.00 per share, with a total value of $3,750,003.00. Following the purchase, the director now owns 12,088 shares of the company’s stock, valued at $108,792. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 21.50% of the stock is currently owned by company insiders.

A number of institutional investors have recently added to or reduced their stakes in the stock. Northern Trust Corp grew its stake in Epizyme by 12.1% in the 2nd quarter. Northern Trust Corp now owns 651,179 shares of the biopharmaceutical company’s stock valued at $8,823,000 after acquiring an additional 70,281 shares during the period. Bank of New York Mellon Corp grew its stake in Epizyme by 2.7% in the 2nd quarter. Bank of New York Mellon Corp now owns 225,764 shares of the biopharmaceutical company’s stock valued at $3,058,000 after acquiring an additional 6,012 shares during the period. Redmile Group LLC grew its stake in Epizyme by 0.5% in the 2nd quarter. Redmile Group LLC now owns 2,021,389 shares of the biopharmaceutical company’s stock valued at $27,390,000 after acquiring an additional 9,400 shares during the period. Opaleye Management Inc. grew its stake in Epizyme by 292.9% in the 2nd quarter. Opaleye Management Inc. now owns 275,000 shares of the biopharmaceutical company’s stock valued at $3,726,000 after acquiring an additional 205,000 shares during the period. Finally, Bank of America Corp DE grew its stake in Epizyme by 19.8% in the 2nd quarter. Bank of America Corp DE now owns 65,569 shares of the biopharmaceutical company’s stock valued at $889,000 after acquiring an additional 10,855 shares during the period. 85.06% of the stock is currently owned by hedge funds and other institutional investors.

About Epizyme

Epizyme, Inc, a clinical stage biopharmaceutical company, discovers and develops novel epigenetic medicines for patients with cancer and other diseases in the United States. Its product candidates include tazemetostat, an inhibitor of the EZH2, which is in Phase II clinical trial for patients with relapsed or refractory non-hodgkin lymphoma (NHL); Phase II clinical trial for relapsed or refractory patients with mesothelioma; Phase I dose-escalation and expansion study for children with INI1-negative solid tumors; Phase II clinical trials for patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL); Phase Ib/II clinical trial in elderly patients with DLBCL; and Phase II clinical trial for relapsed or refractory patients with mesothelioma characterized by BAP1 loss-of-function,; and Phase Ib/II clinical trial for the treatment of patients with relapsed or refractory metastatic non-small cell lung cancer, as well as Phase II clinical trial in adult patients with ovarian cancer.

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