Hyperion Therapeutics, Inc. reported second-quarter 2013 loss of 27 cents per share, significantly narrower than the year-ago loss of $15.26 per share, but wider than the Zacks Consensus Estimate of a loss of 16 cents per share.
Quarter in Details
Quarterly revenues came in at $7.3 million. The company did not report revenues in the year-ago period. Reported revenues were higher than the Zacks Consensus Estimate of $2 million. The company has two marketed products, Ravicti and Buphenyl.
Research and development (R&D) expenses decreased 3.7% to $2.5 million. Hyperion is developing glycerol phenylbutyrate (GPB) for the treatment of hepatic encephalopathy (HE). Hyperion completed a phase II study in HE which led to the decrease in R&D expenses due to reduced clinical development costs.
Selling, general, and administrative (SG&A) expenses increased sharply by 326% to $8.1 million.
The company expects operating expense between $41 million to $46 million for 2013 excluding stock based compensation and Buphenyl transaction related costs.
During the reported quarter, Hyperion acquired global rights to Buphenyl tablets and powder from Ucyclyd Pharma Inc., a subsidiary of Valeant Pharmaceuticals International, Inc. (VRX - Free Report) .
Buphenyl is approved by the U.S. Food and Drug Administration (FDA) to treat urea cycle disorders (UCD).Meanwhile, Ravicti was approved by the FDA in Feb 2013 as a nitrogen-binding agent for chronic management of adult and pediatric UCD patients more than two years of age who cannot be managed by dietary protein restriction and/or amino acid supplementation alone. In May 2013, Ravicti qualified for orphan drug designation in the U.S. The company is planning to begin a phase III study in HE by the end of 2014.
Hyperion currently carries a Zacks Rank #3 (Hold). Companies that look well-positioned include Actelion Ltd. and Jazz Pharmaceuticals Public Limited Company (JAZZ - Free Report) , with a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively.