It has been about a month since the last earnings report for Aerie Pharmaceuticals, Inc. . Shares have added about 4.6% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is AERI due for a pullback? 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.
Aerie Reports Wider-Than-Expected Loss
Aerie posted fourth-quarter 2017 loss of $1.38 per share, wider than the Zacks Consensus Estimate of a loss of $1.29 and the year-ago loss of $0.72.
Quarter in Detail
In December 2017, Aerie's lead drug Rhopressa was approved by the FDA for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. This approval came two months ahead of the scheduled Prescription Drug User Fee Act date of Feb 28, 2018.
In the reported quarter, research and development expenses more than doubled to $38.1 million. General and administrative expenses surged 51.5% to $22.2 million. Also, higher operating expenses in the reported quarter reflect increased activities associated with the expansion of employee base to support operational growth and preparatory activities associated with the Rhopressa commercialization efforts apart from a $24.8-million research and development expense related to the Envisia asset acquisition.
For 2017, loss per share came in at $3.37, wider than the Zacks Consensus Estimate of a loss of $3.27.
Pipeline Updates
Aerie currently evaluates its second candidate, Roclatan, a once-daily, quadruple-action fixed-dose combination of Rhopressa and Xalatan. The NDA for Roclatan is expected to be filed in second-quarter 2018. The company has initiated a phase III trial, Mercury 3, in the third quarter of 2017 to prepare for regulatory submission in Europe. It will be a non-inferiority trial comparing Roclatan with prescribed fixed dose combination of Ganfort.
Meanwhile, Aerie plans to launch the drug Rhopressa in mid second-quarter 2018. The company has hired all regional sales directors and district managers as well as more than 30 of an expected 100 territory managers.The company expects to gain preferred formulary coverage for the majority of commercial payers for Rhopressa by late 2018 with most of the Medicare Part D coverage expected to commence in 2019.
Outlook
Aerie expects Rhopress revenues in the range of $20 million to $30 million in 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
VGM Scores
At this time, AERI has a poor Growth Score of F. Its Momentum is doing a bit better with a D. The stock was also allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. It's no surprise AERI has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Aerie Pharmaceuticals (AERI) Up 4.6% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Aerie Pharmaceuticals, Inc. . Shares have added about 4.6% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is AERI due for a pullback? 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.
Aerie Reports Wider-Than-Expected Loss
Aerie posted fourth-quarter 2017 loss of $1.38 per share, wider than the Zacks Consensus Estimate of a loss of $1.29 and the year-ago loss of $0.72.
Quarter in Detail
In December 2017, Aerie's lead drug Rhopressa was approved by the FDA for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. This approval came two months ahead of the scheduled Prescription Drug User Fee Act date of Feb 28, 2018.
In the reported quarter, research and development expenses more than doubled to $38.1 million. General and administrative expenses surged 51.5% to $22.2 million. Also, higher operating expenses in the reported quarter reflect increased activities associated with the expansion of employee base to support operational growth and preparatory activities associated with the Rhopressa commercialization efforts apart from a $24.8-million research and development expense related to the Envisia asset acquisition.
For 2017, loss per share came in at $3.37, wider than the Zacks Consensus Estimate of a loss of $3.27.
Pipeline Updates
Aerie currently evaluates its second candidate, Roclatan, a once-daily, quadruple-action fixed-dose combination of Rhopressa and Xalatan. The NDA for Roclatan is expected to be filed in second-quarter 2018. The company has initiated a phase III trial, Mercury 3, in the third quarter of 2017 to prepare for regulatory submission in Europe. It will be a non-inferiority trial comparing Roclatan with prescribed fixed dose combination of Ganfort.
Meanwhile, Aerie plans to launch the drug Rhopressa in mid second-quarter 2018. The company has hired all regional sales directors and district managers as well as more than 30 of an expected 100 territory managers.The company expects to gain preferred formulary coverage for the majority of commercial payers for Rhopressa by late 2018 with most of the Medicare Part D coverage expected to commence in 2019.
Outlook
Aerie expects Rhopress revenues in the range of $20 million to $30 million in 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
Aerie Pharmaceuticals, Inc. Price and Consensus
Aerie Pharmaceuticals, Inc. Price and Consensus | Aerie Pharmaceuticals, Inc. Quote
VGM Scores
At this time, AERI has a poor Growth Score of F. Its Momentum is doing a bit better with a D. The stock was also allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. It's no surprise AERI has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.