SpringWorks' Q4 Loss Wider Than Expected, Revenues Beat Estimates

Core Viewpoint - SpringWorks Therapeutics reported a wider loss per share in Q4 2024 compared to estimates, despite a significant increase in total revenues driven by the successful launch of its product Ogsiveo [1][2][6]. Financial Performance - The company incurred a loss of $1.04 per share in Q4 2024, exceeding the Zacks Consensus Estimate of a loss of 72 cents, and improved from a loss of $1.44 per share in the same quarter last year [1]. - Total revenues for Q4 2024 reached $61.5 million, surpassing the Zacks Consensus Estimate of $60 million, and significantly up from $5.4 million in the year-ago quarter [2]. - For the full year 2024, SpringWorks generated revenues of $191.6 million, compared to $5.4 million in the previous year, with a loss of $3.48 per share, an improvement from a loss of $5.15 per share in the prior year [6]. Product Development and Market Position - Ogsiveo became the first approved product in SpringWorks' portfolio and the first drug approved for treating desmoid tumors, with net product revenues increasing nearly 24.7% sequentially in Q4 due to strong demand [2][3]. - The FDA approved Ogsiveo in November 2023 for adult patients with progressing desmoid tumors, and the company aims to establish it as the standard of care [2][4]. - The marketing authorization application for Ogsiveo is under review with the European Medicines Agency (EMA), with potential approval expected in 2025 [7]. Research and Development - Research and development expenses in Q4 totaled $60.2 million, a 37.7% increase from the previous year, attributed to higher drug manufacturing costs and ongoing clinical studies [4]. - Selling, general, and administrative expenses reached $77.1 million, up approximately 28.9% year-over-year, primarily due to costs associated with the launch of Gomekli [5]. Stock Performance - Following the earnings announcement, SpringWorks shares rose by 7.5% on February 20, and the stock has increased by 22.1% over the past year, contrasting with an 8.3% decline in the industry [3].