Radius Health, Inc. ( RDUS Quick Quote RDUS - Free Report) were down 4.77% after it reported disappointing results for the third quarter, wherein loss was in line but sales missed estimates.
Shares of the company have lost 32.6% in the year so far compared with the
industry’s decline of 5.1%.
The company incurred a loss of 14 cents per share in the third quarter, in line with the Zacks Consensus Estimate. The figure was, however, narrower than the year-ago quarter’s loss of 65 cents per share due to higher revenues.
The company reported revenues of $77.8 million, missing the Zacks Consensus Estimate of $82 million. Nevertheless, the figure increased from the year-ago quarter’s $46.7 million owing to continued growth in demand for lead drug, Tymlos, which is approved for the treatment of postmenopausal women with osteoporosis at high risk of fracture.
Quarter in Detail
Net sales of Tymlos were $50.4 million, an 8% year-over-year increase.
Research & development expenses for the reported quarter were $39.5 million, up from $31.8 million year over year, primarily due to an increase in abaloparatide transdermal system program costs. Selling, general & administrative expenses decreased 5% to $33.7 million.
The wearABLe study, evaluating the effects of abaloparatide delivered via a novel transdermal system on bone mineral density, completed the final recruitment of 511 patients. Enrollment in the phase III study, ATOM, which is assessing the efficacy and safety of abaloparatide-SC in men with osteoporosis, completed enrollment.
In July, Radius entered into an exclusive global license agreement with Menarini Group for the development and commercialization of elacestrant. Per the agreement, Menarini Group will be responsible for worldwide commercialization of elacestrant, after the completion of the phase III study. The EMERALD study, evaluating the use of elacestrant to treat ER+/HER2- advanced or metastatic breast cancer, completed the final recruitment of 478 patients.
Radius reported an in-line loss in the third quarter but sales fell short of estimates. Tymlos is holding up pretty well amid the pandemic. The pipeline progress has been impressive as well. However, competition is stiff from bigwigs like Eli Lilly & Co's (
LLY Quick Quote LLY - Free Report) Forteo and Amgen's ( AMGN Quick Quote AMGN - Free Report) Prolia. Zacks Rank & A Stock to Consider
Radius currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the healthcare sector is
Zoetis, Inc. ( ZTS Quick Quote ZTS - Free Report) , which carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Zoetis’ earnings estimates have increased 6 cents for 2020 and 4 cents for 2021 in the past 30 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>