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Radius Health (RDUS) Q1 Earnings: What's in Store?
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Radius Health, Inc. (RDUS - Free Report) is scheduled to report first-quarter 2017 financial results on May 3.
Radius’ shares underperformed the Medical Drugs industry in the last six months. The stock lost 17.6% during this time period as compared to a gain of 10.1% for the industry.
Radius Health has a disappointing track record so far. The company missed estimates in three of the four trailing quarters with a negative average surprise of 5.4%.
Let’s see how things are shaping up for this quarter.
Factors at Play
Radius Health focuses on the development of therapeutics for the treatment of osteoporosis, oncology and endocrine diseases.
On Apr 28, Radius Health announced that the FDA has approved its lead candidate Tymlos (abaloparatide) injection for the treatment of postmenopausal women with osteoporosis at high risk for fracture defined as history of osteoporotic fracture, multiple risk factors for fracture, or patients who have failed or are intolerant to other available osteoporosis therapy.
Hence, we expect investors to focus on the impending launch during the upcoming earnings call.
The company has been gearing for a potential launch in both the U.S and the EU, and has thus increased its headcount. Radius is also looking for a commercialization partner for Tymlos outside the U.S. prior to commercial launch. The company also expects to report top-line results from the 24-month ACTIVExtend clinical trial in second-quarter 2017.
Meanwhile, Raduis is also developing abaloparatide-TD for potential use as a short wear-time transdermal patch. In Dec 2015, the company initiated a human replicative clinical evaluation to compare the optimized abaloparatide-TD patch with its subcutaneous formulation. The company posted positive results from the trial in Sep 2016.
The company is currently focused on completing the manufacturing, scale up, and other required activities needed to initiate a pivotal study to evaluate bioequivalence to abaloparatide-SC. The transdermal patch program has the potential to allow physicians who treat osteoporosis but rarely use injectable drugs to expand their practices to include the use of anabolic therapy.
Other candidates in Radius Health’s pipeline include RAD1901 (in hormone-driven and/or hormone-resistant breast cancer, and vasomotor symptoms in post-menopausal women) and RAD140 (multiple indications including cancer). During the fourth quarter, Radius Health reported encouraging results of its ongoing phase I studies of RAD1901 in advanced breast cancer.
The company plans to file with regulatory agencies in order to take the next steps for the program in the first half of 2017, which would include the design of a phase II trial. Additionally, it anticipates to report results from its completed phase IIb trial in vasomotor symptoms in the first half of 2017.
Furthermore, the company submitted an investigational new drug application, to the FDA for RAD140, which is a selective androgen receptor modulator. Moving ahead, it expects to commence a first-in-human phase I study in women with hormone receptor positive breast cancer in 2017.
Research and development expenses are expected to record an upside thanks to pipeline development activities.
Earnings Whispers
Our proven model does not conclusively show that Radius Health is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Radius Health is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of $1.25. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Radius Health has a Zacks Rank #4 (Sell). As it is, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are a few pharma companies that you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Fibrogen Inc. (FGEN - Free Report) has an Earnings ESP of +23.81% and a Zacks Rank #3. The company is likely to release results on May 8.
Gilead Sciences, Inc. ( (GILD - Free Report) has an Earnings ESP of +2.77% and a Zacks Rank #3. The company is scheduled to release results on May 2.
Sell These Stocks.Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
Image: Bigstock
Radius Health (RDUS) Q1 Earnings: What's in Store?
Radius Health, Inc. (RDUS - Free Report) is scheduled to report first-quarter 2017 financial results on May 3.
Radius’ shares underperformed the Medical Drugs industry in the last six months. The stock lost 17.6% during this time period as compared to a gain of 10.1% for the industry.
Radius Health has a disappointing track record so far. The company missed estimates in three of the four trailing quarters with a negative average surprise of 5.4%.
Let’s see how things are shaping up for this quarter.
Factors at Play
Radius Health focuses on the development of therapeutics for the treatment of osteoporosis, oncology and endocrine diseases.
On Apr 28, Radius Health announced that the FDA has approved its lead candidate Tymlos (abaloparatide) injection for the treatment of postmenopausal women with osteoporosis at high risk for fracture defined as history of osteoporotic fracture, multiple risk factors for fracture, or patients who have failed or are intolerant to other available osteoporosis therapy.
Hence, we expect investors to focus on the impending launch during the upcoming earnings call.
The company has been gearing for a potential launch in both the U.S and the EU, and has thus increased its headcount. Radius is also looking for a commercialization partner for Tymlos outside the U.S. prior to commercial launch. The company also expects to report top-line results from the 24-month ACTIVExtend clinical trial in second-quarter 2017.
Meanwhile, Raduis is also developing abaloparatide-TD for potential use as a short wear-time transdermal patch. In Dec 2015, the company initiated a human replicative clinical evaluation to compare the optimized abaloparatide-TD patch with its subcutaneous formulation. The company posted positive results from the trial in Sep 2016.
The company is currently focused on completing the manufacturing, scale up, and other required activities needed to initiate a pivotal study to evaluate bioequivalence to abaloparatide-SC. The transdermal patch program has the potential to allow physicians who treat osteoporosis but rarely use injectable drugs to expand their practices to include the use of anabolic therapy.
Other candidates in Radius Health’s pipeline include RAD1901 (in hormone-driven and/or hormone-resistant breast cancer, and vasomotor symptoms in post-menopausal women) and RAD140 (multiple indications including cancer). During the fourth quarter, Radius Health reported encouraging results of its ongoing phase I studies of RAD1901 in advanced breast cancer.
The company plans to file with regulatory agencies in order to take the next steps for the program in the first half of 2017, which would include the design of a phase II trial. Additionally, it anticipates to report results from its completed phase IIb trial in vasomotor symptoms in the first half of 2017.
Furthermore, the company submitted an investigational new drug application, to the FDA for RAD140, which is a selective androgen receptor modulator. Moving ahead, it expects to commence a first-in-human phase I study in women with hormone receptor positive breast cancer in 2017.
Research and development expenses are expected to record an upside thanks to pipeline development activities.
Earnings Whispers
Our proven model does not conclusively show that Radius Health is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Radius Health is currently pegged at 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of $1.25. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Radius Health has a Zacks Rank #4 (Sell). As it is, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Radius Health, Inc. Price and EPS Surprise
Radius Health, Inc. Price and EPS Surprise | Radius Health, Inc. Quote
Stocks to Consider
Here are a few pharma companies that you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.
Intercept Pharmaceuticals, Inc. has an Earnings ESP of +9.13% and a Zacks Rank #3. The company is expected to release results on May 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fibrogen Inc. (FGEN - Free Report) has an Earnings ESP of +23.81% and a Zacks Rank #3. The company is likely to release results on May 8.
Gilead Sciences, Inc. ( (GILD - Free Report) has an Earnings ESP of +2.77% and a Zacks Rank #3. The company is scheduled to release results on May 2.
Sell These Stocks.Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.