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Global Blood's (GBT) Q1 Earnings Miss, Revenues Rise Y/Y

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Global Blood Therapeutics, Inc. (GBT - Free Report) incurred a loss of $1.21 per share in first-quarter 2021, wider than the Zacks Consensus Estimate of a loss of $1.02. In the year-ago quarter, the company had reported a loss of $1.20 per share.

The company’s revenues of $39 million, comprising solely of Oxbryta (voxelotor) sales, also missed the Zacks Consensus Estimate of $43 million. The company had generated $14 million in product sales in the year-ago quarter.

Shares of Global Blood were down 4.8% in after-hours trading on Wednesday following the announcement of the weaker-than-expected earnings results. In fact, the stock has decreased  8% year to date compared with the industry’s decline of 6%.

price chart for GBT


Quarter in Details

Oxbryta sales declined 5% sequentially in the first quarter owing to lower inventory levels and higher gross-to-net adjustment.

Notably, the company recorded around 950 new prescriptions of Oxbryta in the first quarter despite an increase in COVID-19 cases in the United States during the same time.

Research and development expenses in the reported quarter were $50.9 million, up 27.8% year over year, primarily attributable to higher external costs related to the company’s preclinical programs.

Selling, general and administrative expenses were $59 million in the reported quarter, up 23.6% year over year due to higher employee-related costs, and increased professional and consulting services cost.

As of Mar 31, 2021, Global Blood had cash, cash equivalents and marketable securities worth $482 million compared with $560.9 million as of Dec 31, 2020.

Pipeline Update

In March 2021, Global Blood entered into an agreement with Sanofi (SNY - Free Report) to in-license worldwide rights to two early-stage research programs in sickle cell disease (“SCD”). The two programs will pursue a novel anti-sickling mechanism as well as one that leverages a new approach to reduce inflammation and oxidative stress.

Meanwhile, in January 2021, the European Medicines Agency (“EMA”) completed the validation of Global Blood’s marketing authorization application for Oxbryta tablets and started its standard review process. The company is seeking full marketing approval from the EMA for Oxbryta to treat hemolytic anemia in patients with SCD who are 12 years of age and older. A potential nod in EU should boost Oxbryta sales in future quarters.

Zacks Rank and Stocks to Consider

Global Blood currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the biotech sector include ASLAN Pharmaceuticals Limited (ASLN - Free Report) and Nabriva Therapeutics AG (NBRV - Free Report) , both 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.

Nabriva Therapeutics’ loss per share estimates have narrowed by 40.9% for 2021 and 45.3% for 2022 over the past 60 days.

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