How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Horizon Therapeutics ten years ago? It may not have been easy to hold on to HZNP for all that time, but if you did, how much would your investment be worth today?
Horizon Therapeutics' Business In-Depth
With that in mind, let's take a look at Horizon Therapeutics' main business drivers.
Dublin, Ireland-based Horizon Therapeutics plc, previously known as Horizon Pharma plc, is a biopharmaceutical focused on making drugs in arthritis, pain, inflammatory and orphan diseases areas. Horizon Therapeutics (Horizon) was formed in September 2014, after Horizon, and Vidara acquired Ireland-based privately held specialty pharmaceutical company, Vidara Therapeutics International Ltd. through a reverse merger. On May 2, 2019, shareholders approved the change of the company’s name to Horizon Therapeutics. This move caters to the company’s long-term strategy to develop and commercialize innovative medicines addressing rare diseases, which currently have very few effective treatment options.
Horizon has been actively pursuing acquisitions to expand and diversify its portfolio. While the company acquired rights to Vimovo (November 2013) and Pennsaid 2% (October 2014) in the United States from AstraZeneca and Nuvo Research Inc. respectively, it acquired certain rights (in the United States, Canada, and Japan) to Actimmune through the September 2014 Vidara merger. Horizon acquired the global rights to Actimmune from Boehringer Ingelheim in June 2017. Ravicti and Buphenyl became part of company’s portfolio through the May 2015 Hyperion Therapeutics acquisition, and Migergot and Krystexxa (pegloticase injection) became part of the company’s portfolio through the January 2016 Crealta Holdings acquisition. In October 2016, Horizon acquired Raptor and added Procysbi and Quinsair to its portfolio.
In January 2020, the FDA granted approval to Tepezza (teprotumumab) as a treatment for patients with thyroid eye disease (TED).
The company generally reports its results under two operating segments —the Orphan and Rheumatology (now renamed as the Orphan segment), and the Inflammation segment.
Sales in 2020 came in at $2.2 billion, up 69.2% year over year. Sales from the Orphan segment came in at $1.8 billion. Sales from the Inflammation segment were $412.7 million.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Horizon Therapeutics ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2011 would be worth $14,969.03, or a 1,396.90% gain, as of October 27, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 268.34% and gold's return of -1.33% over the same time frame.
Going forward, analysts are expecting more upside for HZNP.
Horizon got a boost with the nod of Tepezza for treating Thyroid Eye Diseasea (TED). The drug has witnessed a strong uptake. The drug has seen a strong relaunch as well as continued growth after a temporary short-term disruption in the supply. Krystexxa too promises growth. Horizon is working on label expansion for several of its drugs, which is likely to further boost sales further upon potential approval. Strategic acquisitions and efforts to develop its pipeline, are impressive too. However, Horizon faces intense competition in its targeted markets for most of its marketed drugs, which is a concern. It is also facing adverse effects of the COVID-19 pandemic, which has affected sales. Shares have outperformed the industry year to date. Estimates have gone up ahead of Q3 results. Horizon has a mixed record of earnings surprises in recent quarters.
Shares have gained 8.26% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
Image: Bigstock
If You Invested $1000 in Horizon Therapeutics 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Horizon Therapeutics ten years ago? It may not have been easy to hold on to HZNP for all that time, but if you did, how much would your investment be worth today?
Horizon Therapeutics' Business In-Depth
With that in mind, let's take a look at Horizon Therapeutics' main business drivers.
Dublin, Ireland-based Horizon Therapeutics plc, previously known as Horizon Pharma plc, is a biopharmaceutical focused on making drugs in arthritis, pain, inflammatory and orphan diseases areas. Horizon Therapeutics (Horizon) was formed in September 2014, after Horizon, and Vidara acquired Ireland-based privately held specialty pharmaceutical company, Vidara Therapeutics International Ltd. through a reverse merger. On May 2, 2019, shareholders approved the change of the company’s name to Horizon Therapeutics. This move caters to the company’s long-term strategy to develop and commercialize innovative medicines addressing rare diseases, which currently have very few effective treatment options.
Horizon has been actively pursuing acquisitions to expand and diversify its portfolio. While the company acquired rights to Vimovo (November 2013) and Pennsaid 2% (October 2014) in the United States from AstraZeneca and Nuvo Research Inc. respectively, it acquired certain rights (in the United States, Canada, and Japan) to Actimmune through the September 2014 Vidara merger. Horizon acquired the global rights to Actimmune from Boehringer Ingelheim in June 2017. Ravicti and Buphenyl became part of company’s portfolio through the May 2015 Hyperion Therapeutics acquisition, and Migergot and Krystexxa (pegloticase injection) became part of the company’s portfolio through the January 2016 Crealta Holdings acquisition. In October 2016, Horizon acquired Raptor and added Procysbi and Quinsair to its portfolio.
In January 2020, the FDA granted approval to Tepezza (teprotumumab) as a treatment for patients with thyroid eye disease (TED).
The company generally reports its results under two operating segments —the Orphan and Rheumatology (now renamed as the Orphan segment), and the Inflammation segment.
Sales in 2020 came in at $2.2 billion, up 69.2% year over year. Sales from the Orphan segment came in at $1.8 billion. Sales from the Inflammation segment were $412.7 million.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Horizon Therapeutics ten years ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2011 would be worth $14,969.03, or a 1,396.90% gain, as of October 27, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 268.34% and gold's return of -1.33% over the same time frame.
Going forward, analysts are expecting more upside for HZNP.
Horizon got a boost with the nod of Tepezza for treating Thyroid Eye Diseasea (TED). The drug has witnessed a strong uptake. The drug has seen a strong relaunch as well as continued growth after a temporary short-term disruption in the supply. Krystexxa too promises growth. Horizon is working on label expansion for several of its drugs, which is likely to further boost sales further upon potential approval. Strategic acquisitions and efforts to develop its pipeline, are impressive too. However, Horizon faces intense competition in its targeted markets for most of its marketed drugs, which is a concern. It is also facing adverse effects of the COVID-19 pandemic, which has affected sales. Shares have outperformed the industry year to date. Estimates have gone up ahead of Q3 results. Horizon has a mixed record of earnings surprises in recent quarters.
Shares have gained 8.26% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.