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Horizon's (HZNP) Q3 Earnings & Revenues Surpass Estimates

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Horizon Therapeutics plc reported third-quarter 2022 adjusted earnings of $1.25 per share, which beat the Zacks Consensus Estimate of $1.00. The company reported adjusted earnings of $1.74 per share in the year-ago quarter.

Quarterly revenues of $925.4 million declined 11% year over year, owing to lower sales in the Inflammation segment and lower sales growth of Tepezza, which is approved for treating thyroid eye disease (“TED”). Reveneus surpassed the Zacks Consensus Estimate of $889 million.

Shares of Horizon were up 11.3%, owing to the better-than-expected earnings results. The stock has declined 34.7% so far this year compared with the industry’s decrease of 21.2%.

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Quarter in Detail

Horizon reports financial results under two segments, Orphan and Inflammation.

Sales in the Orphan segment were $904.7 million, down 5% from the prior-year figure, primarily due to lower sales growth in Tepezza. Other drugs like Krystexxa, Uplizna, Ravicti, Actimmune and Procysbi continued the momentum. The segment represented almost 98% of total third-quarter net sales.

Krystexxa sales rose 21% year over year to $191.6 million. Tepezza generated net sales of $490.9 million in the third quarter, which declined 20% year over year.

Ravicti sales were $84.3 million in the quarter, up 10% year over year.

Procysbi sales were $57.8 million in the quarter, up 17% year over year.

Uplizna sales were $43.8 million in the quarter, up 134% year over year.

Actimmune sales were $34.4 million in the quarter, up 15% year over year.

Meanwhile, net sales in the Inflammation segment were $20.7 million, down 76% year over year.

Adjusted research and development expenses were $108.4 million, up from $74.3 million in the year-ago quarter. Adjusted SG&A expenses were $342.8 million, up from $301.1 million in the year-ago quarter.

The company had cash, cash equivalents and investments worth $2.13 billion as of Sep 30, 2022 compared with $1.89 billion as of Jun 30, 2022.

2022 Guidance

Horizon increased its net sales guidance for full-year 2022.

The company now expects net sales in the range of $3.59-$3.61 billion compared with the previous expectation of $3.53-$3.60 billion for 2022. The Zacks Consensus Estimate for the metric is pegged at $3.57 billion.

The company continues to expect Tepezza net sales percentage growth in the high teens for 2022.

Recent Updates

In September 2022, HZNP completed enrollment in the phase IV study evaluating Tepezza for the treatment of TED in adult patients with a chronic/low clinical activity score. Top-line data from the same is expected in the second quarter of 2023.

During the same time, Horizon announced that the phase II study evaluating its pipeline candidate, dazodalibep, for treating Sjögren’s syndrome, has met the primary endpoint in patients with moderate-to-high systemic disease activity.

Horizon has entered into a collaboration agreement with the private biotech, Q32 Bio Inc., to develop the latter’s pipeline candidate, ADX-914, for treating autoimmune diseases. Last month, the company dosed the first patient in a phase II study evaluating ADX-914 for treating moderate-to-severe atopic dermatitis.

Zacks Rank & Stocks to Consider

Horizon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Akero Therapeutics, Inc. (AKRO - Free Report) , Amarin Corporation plc (AMRN - Free Report) and Atea Pharmaceuticals, Inc. (AVIR - Free Report) , all sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Loss per share estimates for Akero Therapeutics narrowed 6.9% for 2022 and 4.8% for 2023 in the past 60 days.

Earnings of Akero Therapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. AKRO delivered an earnings surprise of 7.66% on average.

Loss per share estimates for Amarin narrowed 21% for 2022 and 50% for 2023 in the past 60 days.

Earnings of Amarin surpassed estimates in two of the trailing four quarters and missed on the other two occasions. AMRN delivered a negative earnings surprise of 14.29% on average.

Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.

Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.

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