Infinity Pharmaceuticals, Inc. INFI reported a loss of 34 cents per share in second-quarter 2017, wider than the Zacks Consensus Estimate loss of 22 cents. The company had reported a loss of 12 cents in the year-ago quarter.Infinity Pharmaceuticals, Inc. Price, Consensus and EPS Surprise Infinity Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Infinity Pharmaceuticals, Inc. QuoteSince Infinity does not have any approved product in its portfolio, the company earns revenues in the form of royalties, license and milestone payments as well as research and development (R&D) support fees paid by its partners.Infinity did not record any revenues during second-quarter 2017. However, it recorded collaboration revenues of $9.5 million in the year-ago quarter, related to Infinity's previous collaboration agreement with AbbVie Inc. ABBV.Infinity’s share price has increased 0.7% year to date compared with the industry’s gain of 1.0%.Quarter in DetailIn the reported quarter, R&D expenses plummeted to $3.9 million from $52.9 million. The decline was mainly related to a decrease in clinical development expenses for duvelisib in addition to the company's 2016 restructuring activities.General and administrative (G&A) expenses were $6.2 million for the reported quarter, down from $15.7 million in the year-ago quarter. The decrease was mainly due to the company's 2016 restructuring activities.2017 Outlook ReiteratedInfinity expects net loss to be in the range of $40–$50 million in 2017. The company anticipates ending 2017 with year-end cash and cash equivalents and available-for-sale securities balance in the $40–$50 million band. Moreover, Infinity expects that its existing cash and cash equivalents as of Jun 30, 2017, should be adequate to fund the company's capital needs into the first-quarter 2019.Pipeline UpdateCurrently, Infinity is evaluating IPI-549 as a monotherapy and in combination with Bristol-Myers Squibb Company’s BMY Opdivo (nivolumab) in a phase I study in patients with advanced solid tumors.The company completed an evaluation of escalating monotherapy doses of IPI-549 ranging from 10 – 60 mg QD once daily and has determined the 60 mg dose for evaluation in the expansion component of the study. The selection of the mentioned dose was based on pharmacokinetic and pharmacokinetic analyses, which showed that IPI-549 maintained full suppression of PI3K-gamma at this dose level.Further, data from the study also showed that the IPI-549 dosed at 60 mg QD was well tolerated, and no dose-limiting toxicities were observed. Subsequently, the monotherapy expansion component of the study is now available for enrolment. The study will evaluate the safety and activity of IPI-549 dosed at 60 QD in approximately 25 patients.Meanwhile, dose escalation evaluating IPI-549 in combination with Opdivo is currently ongoing. The company plans to initiate the combination expansion component of the study in the second half of 2017.On the other hand, the company amended its license agreement with Takeda Oncology in Jul 2017 for IPI-549. Per the amended agreement, the company will no longer have an obligation to pay Takeda future royalties on worldwide net sales of selective inhibitors of PI3K-gamma, including IPI-549. In lieu, Infinity issued unsecured convertible notes of $6.0 million to Takeda that mature in 2018 and accrues interest at an annual rate of 8%.Our TakeThe wider-than-expected loss in the second quarter was disappointing. Infinity received a huge setback when AbbVie terminated their collaboration agreement for the development and commercialization of duvelisib. Hence, we expect investor focus on pipeline progress in the upcoming quarters.Zacks Rank & Key PickInfinity currently holds a Zacks Rank #3 (Hold). A better-ranked stock in the healthcare sector is Gilead Sciences. Inc. GILD which currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Gilead’s earnings per share estimates increased from $7.92 to $8.53 for 2017, over last 30days following strong results in the second quarter. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 8.18%.Today's Stocks from Zacks' Hottest Strategies It's hard to believe, even for us at Zacks. 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