Horizon Therapeutics plc (HZNP - Free Report) reported third-quarter 2019 adjusted earnings of 64 cents per share, which beat the Zacks Consensus Estimate of 51 cents but declined from 65 cents reported in the year-ago quarter.
The company reported quarterly sales of $335.5 million, up 3% year over year. The top line also beat the Zacks Consensus Estimate of $333 million.
On May 2, the 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 Therapeutics’ share price has surged 51.9% year to date compared with the industry’s growth of 0.2%.
Quarter in Detail
The company realigned its structure to operate two separate businesses, effective the second quarter of 2018. The company reports financial results in two separate segments — the orphan and rheumatology segment, and the Inflammation (previously known as the primary care segment) segment. Sales of the orphan and rheumatology segment were $250.4 million, up 14% from the prior-year quarter’s figure, driven by continued growth of Krystexxa, Rayos and Actimmune. Krystexxa sales soared 42% year over year to $99.6 million. Beginning January 2019, the company no longer recognizes certain ex-U.S. sales of Ravicti, Buphenyl and Lodotra following the divestiture of those rights in 2018.
Third-quarter 2019 net sales of the Inflammation segment were $85.1 million, down 19% year over year.
Adjusted R&D expenses and adjusted SG&A expenses were 5.8% and 46.2% of net sales, respectively.
The company expects full-year 2019 net sales to be $1.28-$1.30 billion. The net sales growth for Krystexxa is expected to be more than 25%.
Other Pipeline Updates
The company’s pipeline candidate teprotumumab is being developed for the treatment of thyroid eye disease (TED).
In September, the FDA accepted the biologics license application (BLA) for teprotumumab in active TED and granted it Priority Review designation, with an action date of Mar 8, 2020. If approved, teprotumumab would be the first and only treatment for active TED.
In October, the company initiated its open-label PROTECT study, evaluating the use of Krystexxa in adults with uncontrolled gout, who have undergone a kidney transplant. The objective of the trial is to demonstrate that the drug provides effective disease control without burdening the kidneys.
Zacks Rank & Stocks to Consider
Horizon Therapeutics currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the biotech sector are Alkermes Plc. (ALKS - Free Report) , Acorda Therapeutics Inc. (ACOR - Free Report) and AVEO Pharmaceuticals Inc. (AVEO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkermes’ earnings per share estimates have increased from 36 cents to 52 cents for 2019 in the past 60 days. The company delivered a positive earnings surprise the trailing four quarters by 236.80% on average.
Acorda’s loss per share estimates have narrowed from $2.97 to $2.12 for 2019 and from $3.74 to $1.88 for 2020 in the past 60 days. The company delivered a positive earnings surprise in the trailing four quarters by 68.80% on average
AVEO’s estimates have gone up from a loss of 6 cents to a profit of 1 cent for 2019 in the past 60 days. The company delivered a positive earnings surprise in three of the trailing four quarters by 28.34% on average.
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