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Horizon (HZNP) Q1 Earnings Beat Estimates, Revenues Rise Y/Y

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Horizon Therapeutics plc (HZNP - Free Report) reported first-quarter 2022 adjusted earnings of $1.34 per share, which beat the Zacks Consensus Estimate of $1.15. The company had reported adjusted earnings of 2 cents per share in the year-ago quarter.

Quarterly revenues of $885.2 million rose 159% year over year and surpassed the Zacks Consensus Estimate of $867 million. Sales were up due to high uptake of Tepezza, which is approved for treating thyroid eye disease.

Shares of Horizon have lost 11.2% in the year so far compared with the industry’s decline of 21.2%.

Zacks Investment Research
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Quarter in Detail

The company reports financial results under two segments, namely Orphan (previously known as the Orphan and Rheumatology segment) and Inflammation (previously known as the primary care segment).

Sales in the Orphan segment were $834.4 million, up 224% from the prior-year figure, driven by the strong relaunch of Tepezza, as well as continued growth of drugs like Krystexxa, Ravicti, Procysbi, Actimmune and Uplizna. The segment represented around 94% of the total first-quarter net sales.

Krystexxa sales rose 32% year over year to $140.7 million. Tepezza generated net sales of $501.5 million in the first quarter, significantly up year over year. Tepezza was relaunched in the United States in April 2021 after sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders.

Ravicti sales were $78.3 million in the quarter, up 7% year over year.

Procysbi sales were $49.6 million in the quarter, up 14% year over year.

Uplizna sales were $30.5 million in the quarter, significantly up year over year.

Actimmune sales were $31.3 million in the quarter, up 9% year over year.

However, net sales in the Inflammation segment were $50.9 million, down 40% year over year.

Adjusted research and development expenses were $91.9 million, up from $52 million in the year-ago quarter. Adjusted SG&A expenses were $328.2 million, up from $218.6 million in the year-ago quarter.

The company had cash, cash equivalents and investments worth $1.64 billion as of Mar 31, 2022, up from $1.58 billion as of Dec 31, 2021.

2022 Guidance

Horizon maintained its net sales guidance for full-year 2022. The company expects net sales of $3.9-$4.0 billion for 2022. The Zacks Consensus Estimate for the metric is pegged at $3.98 billion.

Recent Updates

In March 2022, the FDA granted priority review to Horizon’s supplemental biologics license application (sBLA) seeking approval for combination use of Krystexxa. The sBLA is seeking approval of Krystexxa plus methotrexate to treat people living with uncontrolled gout.

With the FDA granting priority review to the sBLA, a decision from the regulatory body is expected on Jul 7, 2022. Horizon had submitted the sBLA for the label expansion of Krystexxa to the FDA in January.

Krystexxa is currently approved as a monotherapy for the treatment of adult patients with chronic gout refractory to conventional therapies.

Earlier this month, the European Commission approved Uplizna as a monotherapy for the treatment of adult patients with neuromyelitis optica spectrum disorder who are anti-aquaporin-4 immunoglobulin G seropositive (AQP4-IgG+).

Zacks Rank & Stocks to Consider

Horizon currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector are Aligos Therapeutics, Inc. (ALGS - Free Report) , Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and Voyager Therapeutics, Inc. (VYGR - Free Report) , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Aligos Therapeutics’ loss per share has narrowed 14.3% for 2022 and 43.7% for 2023 over the past 60 days.

Earnings of ALGS surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.

Vertex’s earnings estimates have been revised 0.3% upward for 2022 and 0.2% upward for 2023 over the past 60 days. The VRTX stock has rallied 24.6% year to date.

Earnings of Vertex surpassed estimates in each of the trailing four quarters.

Voyager Therapeutics’ loss per share estimates have narrowed 38.6% for 2022 and 29% for 2023 over the past 60 days. The VYGR stock has skyrocketed 214.4% year to date.

Earnings of Voyager Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.