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Radius (RDUS) Q1 Loss Narrower than Expected, Revenues Lag

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Radius Health, Inc. (RDUS - Free Report) incurred a loss of 34 cents per share in the first quarter, narrower than the Zacks Consensus Estimate of a loss of 42 cents and the year-ago quarter’s loss of 81 cents due to higher revenues.

The company reported revenues of $56.3 million, which missed the Zacks Consensus Estimate of $59 million but increased from the year-ago quarter’s $47.9 million. Lead drug, Tymlos, which is approved for the treatment of postmenopausal women with osteoporosis at high risk of fracture, reported a decline of 5.5% year over year.

Shares of the company have gained 15.3% in the year so far against the industry’s decline of 11.6%.

 

Quarter in Detail

Net sales of Tymlos were $45.3 million, down from $47.9 million recorded in the year-ago quarter due to reduced unit volumes from inventory channel destocking and volatility in patient activity as a result of COVID-19 during 2020. New patient addition increased 14% sequentially.

Research & development expenses for the reported quarter were $31.4 million, down from $39 million in the year-ago quarter, driven by a decrease in abaloparatide-TD program cost. Selling, general & administrative expenses decreased 6% to $34.1 million.

Pipeline Updates

Radius is evaluating Tymlos in additional indications — a study in men with osteoporosis and a bone histomorphometry study evaluating the early effects of the drug on tissue-based indices of formation in postmenopausal women.

It is also developing an abaloparatide transdermal system (“abaloparatide-TD”), for potential use in the treatment of postmenopausal women with osteoporosis. A phase III wearABLe study of abaloparatide-TD was initiated in August 2019 and completed enrollment in September 2020. The company expects to report top-line data from the study in the second half of 2021.

In March 2021, Radius decided to refile its European Marketing Authorization Application (“MAA”) for abaloparatide-SC. The company submitted a letter of intent to the European Medicines Agency (“EMA”), notifying the agency of its intentions.

In July, Radius entered an exclusive global license agreement with Menarini Group for the development and commercialization of elacestrant. Per the agreement, Menarini Group will be responsible for the worldwide commercialization of elacestrant, after the completion of the phase III study. The EMERALD study is evaluating the use of elacestrant to treat ER+/HER2- advanced or metastatic breast cancer and the data are expected in the second half of the year.

Earlier, Radius announced a definitive agreement to acquire the global development and commercialization rights of Benuvia Therapeutics Inc.’s synthetic cannabidiol oral solution, RAD011. The candidate was granted fast track designation by the FDA in 2017 and orphan drug designation in August 2020 for the treatment of hyerphagia behavior and weight loss in patients with Prader-Willi syndrome (PWS).

In March 2021, Radius submitted a type C meeting request to the FDA to discuss the initiation of a pivotal phase II/III study for the treatment of PWS and the meeting with the agency is scheduled for June 2021.

Radius Health, Inc. Price, Consensus and EPS Surprise

Radius Health, Inc. Price, Consensus and EPS Surprise

Radius Health, Inc. price-consensus-eps-surprise-chart | Radius Health, Inc. Quote

Our Take

Radius reported a narrower loss in the first quarter but sales lagged estimates. The pipeline progress has been impressive as well. However, competition is stiff for Tymlos from Eli Lilly & Co's (LLY - Free Report) Forteo and Amgen's (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 includes Repligen Corp. (RGEN - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Repligen’s earnings estimates have increased 25 cents for 2021 in the past 90 days.

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