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Radius Health (RDUS) Q3 Loss in Line with Estimates

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Radius Health, Inc. (RDUS - Free Report) is a Waltham, Massachusetts-based development-stage biopharmaceutical company with a focus on the development of new therapeutics for the treatment of osteoporosis and other serious endocrine-mediated diseases.

With no approved products in its portfolio, Radius Health has not generated revenues yet. In this scenario, investor focus remains on updates on pipeline progress.

The company’s lead candidate, abaloparatide subcutaneous (abaloparatide-SC), is being developed for reducing the risk of fractures in postmenopausal osteoporosis. The candidate is currently under review in both the U.S. and the EU. It expects an opinion from the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) for its application in late 2016 or in 2017, while a response from the FDA is expected by Mar 30, 2017 Radius Health is also developing abaloparatide-transdermal, (abaloparatide-TD) as a short wear-time transdermal patch.

A potential approval would allow Radius Health to record its first commercial sales. The company is looking for a partner to commercialize abaloparatide.

Radius Health has a disappointing track record so far. The company has missed estimates in all of the four trailing quarters with a negative average surprise of 10.89%.

RADIUS HEALTH Price and EPS Surprise

 

RADIUS HEALTH Price and EPS Surprise | RADIUS HEALTH Quote

Currently, Radius Health has a Zacks Rank #4 (Sell), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Loss In-Line: Radius Health’s third quarter 2016 loss of $1.07 was in-line with the Zacks Consensus Estimate.

Revenue: With no approved product in its portfolio, Radius Health has not generated any revenues in the reported quarter. The Zacks Consensus Estimate stood at $0.75 million.

Key Stats: Research and development expenses for the third quarter stood at $27.5 million, up 51.1% year over year primarily driven by higher development costs associated with its pipeline candidate RAD1901 (metastatic breast cancer).

General and administrative expenses for the reported quarter were $19.2 million, significantly higher compared to year ago quarter by 125.9%. This increase was primarily attributable to an increase in professional support costs, including the costs associated with increasing headcount and preparing for the potential commercialization of abaloparatide-SC, subject to a favorable regulatory review.
Share Price Impact: In-active in pre-market trading.

Check back later for our full write up on this RDUS earnings report later.

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