A month has gone by since the last earnings report for Horizon Pharma PLC . Shares have lost about 10.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Horizon Misses Earnings, View Disappoints
Horizon reported fourth-quarter 2016 earnings of $0.50 per share (including the impact of share-based compensation expense and tax adjustments), down from $0.55 in the year-ago quarter. Reported earnings also missed the Zacks Consensus Estimate of $0.52.
Sales in the fourth quarter were up 27% to $310.3 million but missed the Zacks Consensus Estimate of $313.7 million. The year-over-year growth was driven by growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Quarter In Detail
Primary Care revenues increased approximately 11% year over year to $180.6 million, backed by robust performance of Pennsaid 2% (up 74% to $96.6 million). However, both Duexis and Vimovo decreased 16% and 33% to $50.9 million and $31.6 million, respectively. Migergot recorded sales of $1.5 million in the reported quarter.
The Orphan unit recorded revenues of $88.1 million, up 29% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.2 million, down 14% year over year and relatively flat sequentially. Ravicti raked in sales of $32.9 million, down 4% from the year-ago period. Buphenyl contributed $4.7 million to the top line, down 16% from the year-ago quarter.
We note that both Ravicti and Buphenyl became part of company’s portfolio after the May 2015 Hyperion Therapeutics acquisition.
The Rheumatology unit, comprising Krystexxa and Rayos, generated sales of $41.6 million, up from $13.5 million in the year-ago quarter. Krystexxa sales in the fourth quarter came in at $29.5 million. Rayos garnered revenues of $11.3 million, up 1% year over year.
We note that both Migergot and Krystexxa became part of the company’s portfolio after its Jan 2016 Crealta Holdings acquisition.
Adjusted research & development expenses were up from $10.8 million to $17.4 million, while adjusted general and administrative expenses increased 30% to $44.7 million. Adjusted sales and marketing expenses were $85 million, up 53%.
We remind investors that Horizon acquired California-based biopharmaceutical company, Raptor Pharmaceutical Corp in Oct 2016 in a bid to expand its rare disease portfolio. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio. Procysbi net sales for the fourth quarter were $25.3 million
2016 Results
Revenues came in at $981.1 million, up from $757 million in 2015 but missed the Zacks Consensus Estimate of $1.05 billion.
2017 Guidance
Horizon expects net sales to be approximately $1.24 billion–$1.29 billion in 2017. The company expects Actimmune sales to grow in 2017. The Zacks Consensus Estimate for revenues currently stands at $1.30 billion. The company expects adjusted EBITDA in the range of $525 million–$575 million.
The company expects a sequential decline in net sales in the first quarter due to annual managed care plan changes and higher patient deductibles at the beginning of the year. Sales in the first quarter are expected to be 18–20% of total sales in 2017. The company also expects the highest operating expenses as a percent of sales for the year in the first-quarter 2017.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There has been one upward evisionfor the current quarter compared to one downward. However, in the past month, the consensus estimate shifted downward by 5.2% due to these changes.
VGM Scores
At this time, Horizon's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Horizon (HZNP) Down 10.2% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Horizon Pharma PLC . Shares have lost about 10.2% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Horizon Misses Earnings, View Disappoints
Horizon reported fourth-quarter 2016 earnings of $0.50 per share (including the impact of share-based compensation expense and tax adjustments), down from $0.55 in the year-ago quarter. Reported earnings also missed the Zacks Consensus Estimate of $0.52.
Sales in the fourth quarter were up 27% to $310.3 million but missed the Zacks Consensus Estimate of $313.7 million. The year-over-year growth was driven by growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Quarter In Detail
Primary Care revenues increased approximately 11% year over year to $180.6 million, backed by robust performance of Pennsaid 2% (up 74% to $96.6 million). However, both Duexis and Vimovo decreased 16% and 33% to $50.9 million and $31.6 million, respectively. Migergot recorded sales of $1.5 million in the reported quarter.
The Orphan unit recorded revenues of $88.1 million, up 29% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.2 million, down 14% year over year and relatively flat sequentially. Ravicti raked in sales of $32.9 million, down 4% from the year-ago period. Buphenyl contributed $4.7 million to the top line, down 16% from the year-ago quarter.
We note that both Ravicti and Buphenyl became part of company’s portfolio after the May 2015 Hyperion Therapeutics acquisition.
The Rheumatology unit, comprising Krystexxa and Rayos, generated sales of $41.6 million, up from $13.5 million in the year-ago quarter. Krystexxa sales in the fourth quarter came in at $29.5 million. Rayos garnered revenues of $11.3 million, up 1% year over year.
We note that both Migergot and Krystexxa became part of the company’s portfolio after its Jan 2016 Crealta Holdings acquisition.
Adjusted research & development expenses were up from $10.8 million to $17.4 million, while adjusted general and administrative expenses increased 30% to $44.7 million. Adjusted sales and marketing expenses were $85 million, up 53%.
We remind investors that Horizon acquired California-based biopharmaceutical company, Raptor Pharmaceutical Corp in Oct 2016 in a bid to expand its rare disease portfolio. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio. Procysbi net sales for the fourth quarter were $25.3 million
2016 Results
Revenues came in at $981.1 million, up from $757 million in 2015 but missed the Zacks Consensus Estimate of $1.05 billion.
2017 Guidance
Horizon expects net sales to be approximately $1.24 billion–$1.29 billion in 2017. The company expects Actimmune sales to grow in 2017. The Zacks Consensus Estimate for revenues currently stands at $1.30 billion. The company expects adjusted EBITDA in the range of $525 million–$575 million.
The company expects a sequential decline in net sales in the first quarter due to annual managed care plan changes and higher patient deductibles at the beginning of the year. Sales in the first quarter are expected to be 18–20% of total sales in 2017. The company also expects the highest operating expenses as a percent of sales for the year in the first-quarter 2017.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. There has been one upward evisionfor the current quarter compared to one downward. However, in the past month, the consensus estimate shifted downward by 5.2% due to these changes.
Horizon Pharma PLC Price and Consensus
Horizon Pharma PLC Price and Consensus | Horizon Pharma PLC Quote
VGM Scores
At this time, Horizon's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'A'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.