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Sarepta (SRPT) Q2 Loss Widens Y/Y, Revenues Beat Estimates
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Sarepta Therapeutics, Inc. (SRPT - Free Report) incurred an adjusted loss of $1.51 per share for the second quarter of 2020, wider than the year-ago adjusted loss of 83 cents per share. The wider year-over-year loss can be primarily attributed to a significant rise in operating expenses.
Notably, the adjusted figure excludes one-time items, depreciation & amortization expenses, interest expenses, income tax benefit, stock-based compensation expense and other items. Including all these items, the company incurred a loss of $1.93 per share, narrower than the loss of $3.74 in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of $1.81 per share.
Sarepta recorded total revenues of $137.4 million, up 17.5% year over year. Revenues beat the Zacks Consensus Estimate of $116.62 million.
Shares of Sarepta were down 0.6% in after-market trading on Aug 5, following the earnings release. In fact, the company’s shares have increased 23.1% so far this year compared with the industry’s increase of 5.7%.
Quarter in Details
Sarepta’s Exondys 51 — approved for treating Duchenne muscular dystrophy (“DMD”) — continued with its strong performance. The company received approval to its second DMD drug, Vyondys 53, in December 2019.
The company derived product revenues of $111.3 million, up 17.6% year over year, reflecting higher demand for its drugs.
However, the company stated that patient initiation on the drugs has been facing challenges due to the current restricted environment where physicians are facing difficulties in monitoring patients regularly. This resulted in fewer patient initiations during the quarter for both drugs.
The company recorded $26 million in collaboration revenues related to its licensing agreement with Roche for commercialization of its gene therapy candidate, SRP-9001 as DMD therapy in ex-U.S. markets.
Adjusted research and development (R&D) expenses totaled $160.4 million in the second quarter, up 83.3% year over year. The increase was primarily due to increased clinical activities related to its micro-dystrophin program, partially offset by lower clinical activities for Exondys 51 and Vyondys 53.
Adjusted selling, general & administrative (SG&A) expenses were $55.1 million, up 5.4% year over year. Higher personnel expenses increased SG&A expenses.
Sarepta stated that the impact of COVID-19 pandemic was modest during the second quarter, as evident from its product revenues. Meanwhile, the company has significant cash to continue with its clinical studies and business operation amid this pandemic. It expects the impact of the pandemic to be modest in the remainder of 2020. However, the company did not provide any outlook for the year on its earnings call due to the unpredictable nature of COVID-19.
Pipeline Update
Sarepta is on track with its clinical studies amid restrictions related to COVID-19.
In May 2020, the company completed the rolling submission of a new drug application seeking approval for its third exon-skipping DMD product, casimersen. It anticipates a decision from the FDA in early 2021.
Sarepta is progressing well with the development of the micro-dystrophin gene therapy candidate, SRP-9001, in a phase II study in DMD patients and study data readout remains on track, which is anticipated in the first quarter of 2021. The company plans to start a pivotal study on its other gene therapy candidate, SRP-9003, in 2021 to evaluate it in patients with limb-girdle muscular dystrophy type 2E.
Sarepta Therapeutics, Inc. Price, Consensus and EPS Surprise
Emergent Biosolutions’ earnings per share estimates have moved up from $3.45 to $3.58 for 2020 in the past 30 days. The company delivered an earnings surprise of 127.41%, on average, in the last four quarters. The stock has risen 145.7% so far this year.
Horizon Therapeutics’ earnings per share estimates have increased from $1.78 to $2.00 for 2020 in the past 30 days. The company delivered an earnings surprise of 43.99%, on average, in the last four quarters. The stock has surged 97.9% so far this year.
Unum Therapeutics’ loss per share estimates have narrowed from 53 cents to 47 cents for 2020 in the past 30 days. The company delivered an earnings surprise of 36.6%, on average, in the last four quarters. The stock has surged 294.3% so far this year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
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Sarepta (SRPT) Q2 Loss Widens Y/Y, Revenues Beat Estimates
Sarepta Therapeutics, Inc. (SRPT - Free Report) incurred an adjusted loss of $1.51 per share for the second quarter of 2020, wider than the year-ago adjusted loss of 83 cents per share. The wider year-over-year loss can be primarily attributed to a significant rise in operating expenses.
Notably, the adjusted figure excludes one-time items, depreciation & amortization expenses, interest expenses, income tax benefit, stock-based compensation expense and other items. Including all these items, the company incurred a loss of $1.93 per share, narrower than the loss of $3.74 in the year-ago quarter. The Zacks Consensus Estimate was pegged at a loss of $1.81 per share.
Sarepta recorded total revenues of $137.4 million, up 17.5% year over year. Revenues beat the Zacks Consensus Estimate of $116.62 million.
Shares of Sarepta were down 0.6% in after-market trading on Aug 5, following the earnings release. In fact, the company’s shares have increased 23.1% so far this year compared with the industry’s increase of 5.7%.
Quarter in Details
Sarepta’s Exondys 51 — approved for treating Duchenne muscular dystrophy (“DMD”) — continued with its strong performance. The company received approval to its second DMD drug, Vyondys 53, in December 2019.
The company derived product revenues of $111.3 million, up 17.6% year over year, reflecting higher demand for its drugs.
However, the company stated that patient initiation on the drugs has been facing challenges due to the current restricted environment where physicians are facing difficulties in monitoring patients regularly. This resulted in fewer patient initiations during the quarter for both drugs.
The company recorded $26 million in collaboration revenues related to its licensing agreement with Roche for commercialization of its gene therapy candidate, SRP-9001 as DMD therapy in ex-U.S. markets.
Adjusted research and development (R&D) expenses totaled $160.4 million in the second quarter, up 83.3% year over year. The increase was primarily due to increased clinical activities related to its micro-dystrophin program, partially offset by lower clinical activities for Exondys 51 and Vyondys 53.
Adjusted selling, general & administrative (SG&A) expenses were $55.1 million, up 5.4% year over year. Higher personnel expenses increased SG&A expenses.
Sarepta stated that the impact of COVID-19 pandemic was modest during the second quarter, as evident from its product revenues. Meanwhile, the company has significant cash to continue with its clinical studies and business operation amid this pandemic. It expects the impact of the pandemic to be modest in the remainder of 2020. However, the company did not provide any outlook for the year on its earnings call due to the unpredictable nature of COVID-19.
Pipeline Update
Sarepta is on track with its clinical studies amid restrictions related to COVID-19.
In May 2020, the company completed the rolling submission of a new drug application seeking approval for its third exon-skipping DMD product, casimersen. It anticipates a decision from the FDA in early 2021.
Sarepta is progressing well with the development of the micro-dystrophin gene therapy candidate, SRP-9001, in a phase II study in DMD patients and study data readout remains on track, which is anticipated in the first quarter of 2021. The company plans to start a pivotal study on its other gene therapy candidate, SRP-9003, in 2021 to evaluate it in patients with limb-girdle muscular dystrophy type 2E.
Sarepta Therapeutics, Inc. Price, Consensus and EPS Surprise
Sarepta Therapeutics, Inc. price-consensus-eps-surprise-chart | Sarepta Therapeutics, Inc. Quote
Zacks Rank and Stocks to Consider
Sarepta currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the biotech sector include Emergent Biosolutions Inc. (EBS - Free Report) , Horizon Therapeutics and Unum Therapeutics Inc. , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent Biosolutions’ earnings per share estimates have moved up from $3.45 to $3.58 for 2020 in the past 30 days. The company delivered an earnings surprise of 127.41%, on average, in the last four quarters. The stock has risen 145.7% so far this year.
Horizon Therapeutics’ earnings per share estimates have increased from $1.78 to $2.00 for 2020 in the past 30 days. The company delivered an earnings surprise of 43.99%, on average, in the last four quarters. The stock has surged 97.9% so far this year.
Unum Therapeutics’ loss per share estimates have narrowed from 53 cents to 47 cents for 2020 in the past 30 days. The company delivered an earnings surprise of 36.6%, on average, in the last four quarters. The stock has surged 294.3% so far this year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>