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Orexigen Posts Wider-than-Expected Loss in Q4; Sales Up Y/Y
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Orexigen Therapeutics, Inc.’s loss of $2.67 per share in the fourth quarter of 2016, significantly wider than the both Zacks Consensus Estimate of a loss of 54 cents and the year-ago loss of $1.20.
Quarterly revenues of approximately $13.9 million were significantly higher than $4.9 million in the year-ago quarter. The top-line improvement may primarily be attributed to U.S. net sales of Contrave after gaining the U.S. rights for the drug from Takeda.
Orexigen’s shares have outperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Shares of the company gained 143.7% while the industry registered an increase of only 6.4%.
Quarterly Detail
In the fourth quarter, Orexigen reported U.S. net sales of Contrave of $12 million. It recorded $1.8 million of product sales to global partners. The company also reported collaboration revenues of $0.08 million in the reported quarter.
IMS Health's annualized prescription data recorded 691,279 total prescriptions for Contrave filled in 2016 compared with 665,388 total prescriptions filled in 2015.
While R&D expenses increased 19.6% from the year-ago period to $6.7 million. General and administrative expenses were $41.9 million compared with the year-ago figure of $12.3 million.
In Dec 2016, the company came up with a new patient-focused campaign with direct-to-consumer advertising. This should continue to leverage high-profile television, print and digital media outlets.
In Mar 2017, Orexigen entered into a commercialization and distributorship agreement with Italian pharmaceutical company, Bruno Farmaceutici, for Contrave. Notably, this is the company’s fourth partnership in Europe.
2016 Results
Full-year sales increased 37.6% year over year to $33.7 million in 2016. Sales missed the Zacks Consensus Estimate of $34 million.
2017 Guidance
The company expects cash balance in the range of $40–$50 million by the end of 2017.
Orexigen expects cash operating expenses of $115–$125 million in 2017.
Orexigen Therapeutics, Inc. Price, Consensus and EPS Surprise
Orexigen currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Heska Corporation , Addus HomeCare Corporation (ADUS - Free Report) and Alliqua BioMedical, Inc. . While Heska sports a Zacks Rank #1 (Strong Buy), Addus and Alliqua carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Heska’s earnings per share estimates increased from $1.53 to $1.65 for 2017 and from $1.80 to $2.01 for 2018 over the last 30 days. The company posted positive surprises in three of the four trailing quarters with an average beat of 291.54%.
Addus HomeCare’s earnings per share estimates increased from $1.38 to $1.41 for 2017 over the last 30 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 10.14%.
Alliqua’s loss per share estimates narrowed from 61 cents to 59 cents for 2017 over the last 30 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 3.56%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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Orexigen Posts Wider-than-Expected Loss in Q4; Sales Up Y/Y
Orexigen Therapeutics, Inc.’s loss of $2.67 per share in the fourth quarter of 2016, significantly wider than the both Zacks Consensus Estimate of a loss of 54 cents and the year-ago loss of $1.20.
Quarterly revenues of approximately $13.9 million were significantly higher than $4.9 million in the year-ago quarter. The top-line improvement may primarily be attributed to U.S. net sales of Contrave after gaining the U.S. rights for the drug from Takeda.
Orexigen’s shares have outperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Shares of the company gained 143.7% while the industry registered an increase of only 6.4%.
Quarterly Detail
In the fourth quarter, Orexigen reported U.S. net sales of Contrave of $12 million. It recorded $1.8 million of product sales to global partners. The company also reported collaboration revenues of $0.08 million in the reported quarter.
IMS Health's annualized prescription data recorded 691,279 total prescriptions for Contrave filled in 2016 compared with 665,388 total prescriptions filled in 2015.
While R&D expenses increased 19.6% from the year-ago period to $6.7 million. General and administrative expenses were $41.9 million compared with the year-ago figure of $12.3 million.
In Dec 2016, the company came up with a new patient-focused campaign with direct-to-consumer advertising. This should continue to leverage high-profile television, print and digital media outlets.
In Mar 2017, Orexigen entered into a commercialization and distributorship agreement with Italian pharmaceutical company, Bruno Farmaceutici, for Contrave. Notably, this is the company’s fourth partnership in Europe.
2016 Results
Full-year sales increased 37.6% year over year to $33.7 million in 2016. Sales missed the Zacks Consensus Estimate of $34 million.
2017 Guidance
The company expects cash balance in the range of $40–$50 million by the end of 2017.
Orexigen expects cash operating expenses of $115–$125 million in 2017.
Orexigen Therapeutics, Inc. Price, Consensus and EPS Surprise
Orexigen Therapeutics, Inc. Price, Consensus and EPS Surprise | Orexigen Therapeutics, Inc. Quote
Zacks Rank & Key Picks
Orexigen currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Heska Corporation , Addus HomeCare Corporation (ADUS - Free Report) and Alliqua BioMedical, Inc. . While Heska sports a Zacks Rank #1 (Strong Buy), Addus and Alliqua carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Heska’s earnings per share estimates increased from $1.53 to $1.65 for 2017 and from $1.80 to $2.01 for 2018 over the last 30 days. The company posted positive surprises in three of the four trailing quarters with an average beat of 291.54%.
Addus HomeCare’s earnings per share estimates increased from $1.38 to $1.41 for 2017 over the last 30 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 10.14%.
Alliqua’s loss per share estimates narrowed from 61 cents to 59 cents for 2017 over the last 30 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 3.56%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>