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Horizon's (HZNP) Q1 Earnings Miss Estimates, Revenues Beat
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Horizon Therapeutics Public Limited Company reported first-quarter 2021 adjusted earnings of 3 cents per share, which declined from the year-ago quarterly earnings of 40 cents. Earnings also missed the Zacks Consensus Estimate of 7 cents per share.
Quarterly sales of $342.4 million were down 3.8% year over year. The top line beat the Zacks Consensus Estimate of $326.5 million. Sales were down in the first quarter due to supply disruptions resulting from U.S. government-mandated COVID-19 vaccine orders.
Shares of Horizon Therapeutics have rallied 22.1% year to date against the industry’s decrease of 6%.
Quarter in Detail
The company reports financial results under two segments — Orphan and Rheumatology, and Inflammation (previously known as the primary care segment). In the first quarter of 2020, the Orphan and Rheumatology segment was renamed the Orphan segment.
Sales in the Orphan segment were $257.5 million, up 4.9% from the prior-year figure, driven by the continued growth of drugs like Krystexxa, Ravicti, Procysbi and Actimmune. The segment represented almost 75% of total first-quarter net sales.
Krystexxa sales increased 14% year over year to $106.7 million. Tepezza generated net sales worth $2.1 million in the first quarter. Tepezza net sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders. In January 2020, the FDA approved Tepezza for the treatment of thyroid eye disease (“TED”).
Ravicti sales were $72.8 million in the quarter, up 19% year over year.
First-quarter 2021 net sales in the Inflammation segment were $84.9 million, down 23% year over year.
Adjusted research and development expenses were $49 million, up from $20.8 million in the year-ago quarter. Adjusted SG&A expenses were $218.6 million, up from $193.1 million in the year-ago quarter.
2021 Guidance
Horizon Therapeutics updated the financial guidance it provided earlier this year.
The company expects 2021 net sales between $2.75 billion and $2.85 billion, compared with the previous expectation of $2.70 billion and $2.80 billion. The Zacks Consensus Estimate stands at $2.81 billion. The updated guidance ranges incorporate Viela Bio, Inc, which was acquired in March 2021.
The company expects Tepezza net sales to be greater than $1.275 billion and Krystexxa net sales to be above $500 million, both unchanged from the previous expectation.
Other Updates
In March 2021, the FDA approved a prior approval supplement to support increased scale production of the Tepezza drug product for the treatment of TED.
Meanwhile, the company expects to initiate a randomized, placebo-controlled study evaluating Tepezza in patients with chronic TED in mid-2021. A phase exploratory study in diffuse cutaneous systemic sclerosis is also expected to begin in mid-2021.
Please note that in March 2021, Horizon Therapeutics completed the acquisition of Viela Bio, following which the company added Uplizna, a B-cell-depleting humanized monoclonal antibody approved for a rare disease, to its portfolio.
Horizon Therapeutics Public Limited Company Price, Consensus and EPS Surprise
ASLAN Pharmaceuticals’ loss per share estimates have narrowed 26.3% for 2021 and 43.9% for 2022 over the past 60 days. The stock has surged 59% year to date.
Allogene Therapeutics’ loss per share estimates have narrowed by 0.5% for 2021 and 1.2% for 2022 over the past 60 days.The stock has increased 13.7% year to date.
Nabriva Therapeutics’ loss per share estimates have narrowed by 40.9% for 2021 and 45.3% for 2022 over the past 60 days.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Horizon's (HZNP) Q1 Earnings Miss Estimates, Revenues Beat
Horizon Therapeutics Public Limited Company reported first-quarter 2021 adjusted earnings of 3 cents per share, which declined from the year-ago quarterly earnings of 40 cents. Earnings also missed the Zacks Consensus Estimate of 7 cents per share.
Quarterly sales of $342.4 million were down 3.8% year over year. The top line beat the Zacks Consensus Estimate of $326.5 million. Sales were down in the first quarter due to supply disruptions resulting from U.S. government-mandated COVID-19 vaccine orders.
Shares of Horizon Therapeutics have rallied 22.1% year to date against the industry’s decrease of 6%.
Quarter in Detail
The company reports financial results under two segments — Orphan and Rheumatology, and Inflammation (previously known as the primary care segment). In the first quarter of 2020, the Orphan and Rheumatology segment was renamed the Orphan segment.
Sales in the Orphan segment were $257.5 million, up 4.9% from the prior-year figure, driven by the continued growth of drugs like Krystexxa, Ravicti, Procysbi and Actimmune. The segment represented almost 75% of total first-quarter net sales.
Krystexxa sales increased 14% year over year to $106.7 million. Tepezza generated net sales worth $2.1 million in the first quarter. Tepezza net sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders. In January 2020, the FDA approved Tepezza for the treatment of thyroid eye disease (“TED”).
Ravicti sales were $72.8 million in the quarter, up 19% year over year.
First-quarter 2021 net sales in the Inflammation segment were $84.9 million, down 23% year over year.
Adjusted research and development expenses were $49 million, up from $20.8 million in the year-ago quarter. Adjusted SG&A expenses were $218.6 million, up from $193.1 million in the year-ago quarter.
2021 Guidance
Horizon Therapeutics updated the financial guidance it provided earlier this year.
The company expects 2021 net sales between $2.75 billion and $2.85 billion, compared with the previous expectation of $2.70 billion and $2.80 billion. The Zacks Consensus Estimate stands at $2.81 billion. The updated guidance ranges incorporate Viela Bio, Inc, which was acquired in March 2021.
The company expects Tepezza net sales to be greater than $1.275 billion and Krystexxa net sales to be above $500 million, both unchanged from the previous expectation.
Other Updates
In March 2021, the FDA approved a prior approval supplement to support increased scale production of the Tepezza drug product for the treatment of TED.
Meanwhile, the company expects to initiate a randomized, placebo-controlled study evaluating Tepezza in patients with chronic TED in mid-2021. A phase exploratory study in diffuse cutaneous systemic sclerosis is also expected to begin in mid-2021.
Please note that in March 2021, Horizon Therapeutics completed the acquisition of Viela Bio, following which the company added Uplizna, a B-cell-depleting humanized monoclonal antibody approved for a rare disease, to its portfolio.
Horizon Therapeutics Public Limited Company Price, Consensus and EPS Surprise
Horizon Therapeutics Public Limited Company price-consensus-eps-surprise-chart | Horizon Therapeutics Public Limited Company Quote
Zacks Rank and Stocks to Consider
Horizon Therapeutics currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include ASLAN Pharmaceuticals Limited (ASLN - Free Report) , Allogene Therapeutics, Inc. (ALLO - Free Report) and Nabriva Therapeutics AG , with all three carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASLAN Pharmaceuticals’ loss per share estimates have narrowed 26.3% for 2021 and 43.9% for 2022 over the past 60 days. The stock has surged 59% year to date.
Allogene Therapeutics’ loss per share estimates have narrowed by 0.5% for 2021 and 1.2% for 2022 over the past 60 days.The stock has increased 13.7% year to date.
Nabriva Therapeutics’ loss per share estimates have narrowed by 40.9% for 2021 and 45.3% for 2022 over the past 60 days.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>