Dublin, Ireland-based Horizon Pharma plc is a biopharmaceutical focused on identifying, developing, acquiring and commercializing products that address unmet therapeutic needs in arthritis, pain, inflammatory and orphan diseases. The company operates through three business units – Orphan, Primary Care and Rheumatology. Its portfolio currently comprises nine marketed products. Key products include Actimmune (chronic granulomatous disease and severe malignant osteopetrosis) and Duexis (signs and symptoms of osteoarthritis and rheumatoid arthritis) among others.
The company has been actively pursuing acquisitions to expand and diversify its portfolio. In this scenario, investor focus remains on the company’s performance apart from the usual top-and bottom-line numbers.
Horizon’s performance has been dismal with the company missing earnings in all of the four trailing quarters. Overall, the company has an average negative earnings surprise of 11.56%.
Currently, Horizon Pharma has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Horizon Pharma’s first-quarter 2017 earnings missed expectations. Our consensus called for EPS of 25 cents, and the company reported EPS of 21 cents.
Revenues: Revenues in the reported quarter also came in below expectations. Horizon Pharma posted revenues of $220.9 million which missed our consensus estimate of $253 million.
Key Stats: The company generated strong performance in its orphan and rheumatology business units, with sales of Krystexxa and Ravicti rising 96% and 18% respectively but its primary care business unit performed well below expectations.
Acquisition: The company inked a deal to acquire River Vision and its biologic teprotumumab in late stage development for Thyroid Eye Disease (TED). Horizon is acquiring all outstanding equity of River Vision for a $145 million up-front payment, plus potential future milestone and earn-out payments. The acquisition is expected to close immediately.
2017 Outlook: Due to below-expected performance of its primary care business unit,, the company lowered its outlook for 2017. It expects net sales to be in the range of $1.0 billion to $1.035 billion down from its prior expectation of $1.240 billion to $1.290 billion. The Zacks Consensus Estimate for revenues currently stands at $1.40 billion.
The company expects adjusted EBITDA to be in the range of $315 million to $350 million in 2017 down from its previous expectation of $525 million to $575 million.
Shares declined more than 30% in pre market trading.
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Horizon Pharma (HZNP) Misses Q1 Earnings, Shares Crash
Dublin, Ireland-based Horizon Pharma plc is a biopharmaceutical focused on identifying, developing, acquiring and commercializing products that address unmet therapeutic needs in arthritis, pain, inflammatory and orphan diseases. The company operates through three business units – Orphan, Primary Care and Rheumatology. Its portfolio currently comprises nine marketed products. Key products include Actimmune (chronic granulomatous disease and severe malignant osteopetrosis) and Duexis (signs and symptoms of osteoarthritis and rheumatoid arthritis) among others.
The company has been actively pursuing acquisitions to expand and diversify its portfolio. In this scenario, investor focus remains on the company’s performance apart from the usual top-and bottom-line numbers.
Horizon’s performance has been dismal with the company missing earnings in all of the four trailing quarters. Overall, the company has an average negative earnings surprise of 11.56%.
Currently, Horizon Pharma has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Horizon Pharma’s first-quarter 2017 earnings missed expectations. Our consensus called for EPS of 25 cents, and the company reported EPS of 21 cents.
Revenues: Revenues in the reported quarter also came in below expectations. Horizon Pharma posted revenues of $220.9 million which missed our consensus estimate of $253 million.
Key Stats: The company generated strong performance in its orphan and rheumatology business units, with sales of Krystexxa and Ravicti rising 96% and 18% respectively but its primary care business unit performed well below expectations.
Acquisition: The company inked a deal to acquire River Vision and its biologic teprotumumab in late stage development for Thyroid Eye Disease (TED). Horizon is acquiring all outstanding equity of River Vision for a $145 million up-front payment, plus potential future milestone and earn-out payments. The acquisition is expected to close immediately.
2017 Outlook: Due to below-expected performance of its primary care business unit,, the company lowered its outlook for 2017. It expects net sales to be in the range of $1.0 billion to $1.035 billion down from its prior expectation of $1.240 billion to $1.290 billion. The Zacks Consensus Estimate for revenues currently stands at $1.40 billion.
The company expects adjusted EBITDA to be in the range of $315 million to $350 million in 2017 down from its previous expectation of $525 million to $575 million.
Shares declined more than 30% in pre market trading.
Horizon Pharma PLC Price and EPS Surprise
Horizon Pharma PLC Price and EPS Surprise | Horizon Pharma PLC Quote
The Best & Worst of Zacks Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>