A month has gone by since the last earnings report for Horizon Pharma PLC . Shares have added about 11.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Horizon Down on Q1 Earnings Miss, Guidance Trimmed
Horizon reported first-quarter 2017 earnings of $0.21 per share, down from $0. 25 in the year-ago quarter. Reported earnings also missed the Zacks Consensus Estimate of $0.25.
Sales in the first quarter were up 8% year over year to $220.9 million backed by growth across its orphan and rheumatology business units, offset by lower sales in the primary care business unit. However, sales missed the Zacks Consensus Estimate of $253 million.
Quarter in Detail
The Orphan unit recorded revenues of $113 million, up 70% from the year-ago period. The strong performance was backed by strong net sales of Ravicti, which generated sales of $43.9 million in the quarter, up 18% year over year. Additionally, Procysbi contributed to the performance with its net sales of $34.3 million. Actimmune sales in the reported quarter were $26.2 million, up 3% year over year.
The Rheumatology unit generated sales of $42.8 million, up 56% year over year. Also, Krystexxa sales in the first quarter were strong and came in at $31.6 million, up 96% year over year.
Primary Care posted revenues of $65.6 million. The decline in net sales was due to the implementation of a new contracting model, in order to secure broader inclusion of the company’s primary care medicines on formularies. Net sales of Pennsaid 2%, Duexix and Vimovo were $41.6 million, $17.7 million and $4.9 million, respectively, in the first quarter of 2017.
2017 Guidance
Horizon’s primary care business unit results were significantly below expectations due to the implementation of a new commercial model, where the company is contracting with pharmacy benefit managers and payers to help patients obtain access to its medicines. The company plans to overcome this underperformance by reducing certain costs in the primary care business unit in order to align its cost structure with the lower- than-expected sales. In this context, the company reduced its outlook for 2017.
Currently, it expects net sales 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 is currently pegged at $1.40 billion.
Furthermore, Horizon is significantly increasing investments in one its key growth drivers, Krystexxa. Thus, the company raised its estimate of net sales for Krystexxa to more than $400 million from $250 million for the full year.
Other Updates
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.
On Apr 28, 2017, the company received approval for its supplemental New Drug Application (sNDA) from the FDA for Ravicti. The approval allowed to expand the age range for chronic management of urea cycle disorders (UCDs) in patients to two months and older from two years and older.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Horizon Pharma PLC Price and Consensus
VGM Scores
At this time, the stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
The stock has a Zacks Rank # 5 (Strong Sell). We are expecting a below average return from the stock in the next few months.
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Horizon Pharma (HZNP) Up 11.3% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Horizon Pharma PLC . Shares have added about 11.3% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Horizon Down on Q1 Earnings Miss, Guidance Trimmed
Horizon reported first-quarter 2017 earnings of $0.21 per share, down from $0. 25 in the year-ago quarter. Reported earnings also missed the Zacks Consensus Estimate of $0.25.
Sales in the first quarter were up 8% year over year to $220.9 million backed by growth across its orphan and rheumatology business units, offset by lower sales in the primary care business unit. However, sales missed the Zacks Consensus Estimate of $253 million.
Quarter in Detail
The Orphan unit recorded revenues of $113 million, up 70% from the year-ago period. The strong performance was backed by strong net sales of Ravicti, which generated sales of $43.9 million in the quarter, up 18% year over year. Additionally, Procysbi contributed to the performance with its net sales of $34.3 million. Actimmune sales in the reported quarter were $26.2 million, up 3% year over year.
The Rheumatology unit generated sales of $42.8 million, up 56% year over year. Also, Krystexxa sales in the first quarter were strong and came in at $31.6 million, up 96% year over year.
Primary Care posted revenues of $65.6 million. The decline in net sales was due to the implementation of a new contracting model, in order to secure broader inclusion of the company’s primary care medicines on formularies. Net sales of Pennsaid 2%, Duexix and Vimovo were $41.6 million, $17.7 million and $4.9 million, respectively, in the first quarter of 2017.
2017 Guidance
Horizon’s primary care business unit results were significantly below expectations due to the implementation of a new commercial model, where the company is contracting with pharmacy benefit managers and payers to help patients obtain access to its medicines. The company plans to overcome this underperformance by reducing certain costs in the primary care business unit in order to align its cost structure with the lower- than-expected sales. In this context, the company reduced its outlook for 2017.
Currently, it expects net sales 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 is currently pegged at $1.40 billion.
Furthermore, Horizon is significantly increasing investments in one its key growth drivers, Krystexxa. Thus, the company raised its estimate of net sales for Krystexxa to more than $400 million from $250 million for the full year.
Other Updates
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.
On Apr 28, 2017, the company received approval for its supplemental New Drug Application (sNDA) from the FDA for Ravicti. The approval allowed to expand the age range for chronic management of urea cycle disorders (UCDs) in patients to two months and older from two years and older.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon Misses Q3 Earnings, Revenue Estimates
Horizon reported third-quarter 2016 earnings of $0.56 per share (including the impact of share-based compensation expense and tax adjustments), which surged approximately 85% from the year-ago period. Reported earnings, however, missed the Zacks Consensus Estimate of $0.63.
Including the impact of the $65 million settlement with Express Scripts in late Sep 2016, total revenue in the reported quarter came in at $208.7 million, down 8%. Revenues also missed the Zacks Consensus Estimate of $273.1 million.
Excluding the impact of the settlement, revenues amounted to $273.7 million, up 21% from the year-ago period. This was mainly due to strong growth across all three of its business units – Primary Care, Orphan and Rheumatology.
Business Units Drive Top Line
Primary Care revenues increased approximately 10% year over year to $161.8 million, backed by robust performance of Pennsaid 2% (up 83% to $80.2 million). Both Duexis and Vimovo increased 4.6% and 4.5% sequentially to $47.6 million and $32.8 million, respectively.
Migergot recorded sales of $1.2 million in the reported quarter, up 9.1% sequentially.
The Orphan unit recorded revenues of $71.4 million, up 8% from the year-ago period. The unit comprises sales of Ravicti, Actimmune and Buphenyl.
Actimmune sales in the reported quarter were $24.9 million, down 13% year over year and 17% sequentially. The decline was due to lower prescription volume and lower net pricing as a result of higher co-pay and other patient assistance. Ravicti raked in sales of $42.2 million, up 26% from the year-ago period. Buphenyl contributed $4.3 million to the top line, up 10% from the year-ago quarter.
The Rheumatology unit, comprising Krystexxa and Rayos/Lodotra, generated sales of $40.5 million, up 217% year over year and 22% sequentially. Krystexxa sales in the third quarter came in at $25.6 million, up 29% sequentially. Rayos garnered revenues of $13.4 million, up 15% year over year driven by steady prescription volume growth.
Adjusted research & development expenses declined 6.3% year over year to $10.3 million, while adjusted general and administrative expenses increased 6% to $39.4 million. Adjusted sales and marketing expenses were $66 million, up 46.6%.
In Oct 2016, Horizon completed the acquisition of California-based biopharmaceutical company, Raptor Pharmaceutical Corp. With this acquisition, Horizon will be able to strengthen its U.S. orphan business, and expand into Europe and other key international markets. The acquisition has also added two orphan drugs – Procysbi and Quinsair – to its portfolio.
2016 Guidance Reiterated
Horizon reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980–$985 million, including the impact of the settlement and the Raptor acquisition. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion, which includes contribution of $20–$25 million from Raptor medicines for the last two months of 2016.
The company continues to expect adjusted EBITDA in the range of $450 million to $460 million, which includes the impact of Raptor for the last two months of 2016, as well as an expected increase in operating expenses.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon second-quarter 2016 earnings (under new methodology) of $0.56 per share increased 51.4% from the year-ago period. Under the prior methodology, the company reported second-quarter earnings of $0.62 per share, up almost 59% from the year-ago period.
Including the impact of share-based compensation expense, the company’s second-quarter earnings came in at $0.42 per share, up almost 60% from the year-ago period.
The Zacks Consensus Estimate was $0.53 per share.
Total revenues in the reported quarter surged 49% year over year to $257.4 million driven by strong growth across all three of its business units – Primary Care, Orphan and Rheumatology. Reported revenues were also above the Zacks Consensus Estimate of $238.1 million.
Business Units Drive Revenues
Primary Care revenues increased 33% to $150.7 million, driven by an approximately 22% year-over-year improvement in total prescriptions due to strong performance of Pennsaid 2% (up a substantial 147% to $72.7 million). Both Duexis and Vimovo increased 53.7% and 23.1% sequentially to $45.5 million and $31.4 million, respectively.
Migergot recorded sales of $1.1 million in the reported quarter compared with $0.9 million in the first quarter of 2016.
The Orphan unit recorded revenues of $73.5 million, up 51% from the year-ago period. The unit includes sales of Ravicti, Actimmune and Buphenyl. Actimmune sales in the reported quarter were $30 million, up 16% year over year and 18% sequentially. While Ravicti generated sales of $39.4 million, up 6.2% sequentially, Buphenyl contributed $4.1 million to total revenues, up 10.8% sequentially.
The Rheumatology unit, comprising Krystexxa, Rayos and Lodotra, generated sales of $33.2 million, up 211% from the year-ago period. Krystexxa sales in the second quarter came in at $19.9 million compared with $16.2 million in the first quarter of 2016. While Rayos revenues increased 18% to $12.1 million, Lodotra revenues shot up 211% to $1.2 million.
Adjusted research & development expenses increased 26.2% year over year to $8.5 million. Adjusted general and administrative expenses increased 55.8% to $34.7 million. Adjusted sales and marketing expenses increased almost 39% to $72.4 million.
2016 Guidance Maintained
Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales in the range of $1.025 billion to $1.050 billion. It still expects adjusted EBITDA in the range of $495 million to $510 million.
Horizon Earnings Up Y/Y, Keeps '16 View
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Horizon Pharma PLC Price and Consensus
Horizon Pharma PLC Price and Consensus | Horizon Pharma PLC Quote
VGM Scores
At this time, the stock has an average Growth Score of 'C', though it is lagging a lot on the momentum front with an 'F'. However, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
The stock has a Zacks Rank # 5 (Strong Sell). We are expecting a below average return from the stock in the next few months.