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Aerpio (ARPO) to Report Q4 Earnings: What's in the Cards?

Aerpio Pharmaceuticals, Inc. ARPO will provide updates on its pipeline developments when it reports fourth-quarter 2020 results.

The company has a mixed earnings surprise history, surpassing expectations in two of the trailing four quarters while missing in the other two. The average earnings surprise was 3.34%. In the last reported quarter, the company delivered anearnings surprise of 14.29%.

Shares of Aerpio have surged 185% in the past year compared with the industry’s growth of 12.2%.

Let's see how things are shaping up for this announcement.

Factors to Consider

Aerpio does not generate any revenues yet as it has no marketed drug in its portfolio.The company will provide updates on its pipeline development in the fourth quarter.

In December 2020, Aerpio announced top-line results from the phase II study of its pipeline candidate,Razuprotafib, for the treatment of glaucoma. Razuprotafib binds to and inhibits vascular endothelial protein tyrosine phosphatase (VE-PTP), an important negative regulator of Tie2. The drug met the primary efficacy endpoint and showed that the change from baseline in diurnal mean intraocular pressure (IOP) at Day 28 of study eyes treated with razuprotafib twice-daily (“BID”) dose group plus latanoprost was statistically significant compared to those treated with latanoprost monotherapy.

The company has two ongoing studies of razuprotafib to prevent or mitigate acute respiratory distress syndrome (ARDS) in COVID-19 patients, where patient enrollment and dosing continue. If successful, these studies may open the door to treating ARDS across a broader array of infections.

The company also has Tie2 activating antibodies in early development, including a monospecific antibody that may be used to treat diabetic complications and a bispecific antibody that may be used to treat retinal diseases such as diabetic macular edema (DME) and wet age-related macular edema (wAMD).

In January 2021, the company initiated a process to explore and review a range of strategic alternatives focused on maximizing stockholder value from its clinical assets and cash resources. As part of this process, the company will explore strategic options for partnering its programswith other entities as well as the potential for an acquisition, sale, merger, business combination, asset sale, in-license, out-license or other strategic transactions. We expect the company to provide further updates in the fourth-quarter earnings call.

What Our Model Indicates

Our proven model does not conclusively predict an earnings beat for Aerpio 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: Aerpio has an Earnings ESP of 0.00%. Both the Zacks Consensus Estimate andtheMost Accurate Estimate stand at a loss of 13 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

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

Castle Biosciences Inc. CSTL has an Earnings ESP of +54.55 % and a Zacks Rank #3.

ADMA Biologics, Inc. ADMA has an Earnings ESP of +5.88 % and a Zacks Rank #2.

Atea Pharmaceuticals Inc. AVIR has an Earnings ESP of +279.59% and a Zacks Rank #2.

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