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Radius Health (RDUS) Up 3.7% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Radius Health (RDUS - Free Report) . Shares have added about 3.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Radius Health due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Radius' Q3 Loss Matches Estimates, Revenues Miss

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.

Pipeline Updates

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.


 

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted -10.93% due to these changes.

VGM Scores

At this time, Radius Health has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Radius Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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