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Horizon Therapeutics' (HZNP) Q4 Earnings Beat Estimates

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Horizon Therapeutics plc  reported fourth-quarter 2019 adjusted earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 43 cents but declined from 67 cents reported in the year-ago quarter.

The company reported quarterly sales of $363.5 million, up 2.3% year over year. The top line also beat the Zacks Consensus Estimate of $352 million.

On May 2, its shareholders approved the change of the company’s name to Horizon Therapeutics..

Horizon Therapeutics’ share price has surged 60.8% year to date against the industry’s decline of 8.5%. 

Quarter in Detail

The company realigned its structure to operate two separate businesses, effective second-quarter 2018. The company reports financial results in two separate segments — orphan and rheumatology, and Inflammation (previously known as the primary care segment).

Sales of the orphan and rheumatology segment were $269.8 million, up 14% from the prior-year figure, driven by continued growth of Krystexxa and Ravicti. Krystexxa sales soared 33% year over year to $110.7 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. 

Fourth-quarter 2019 net sales of the Inflammation segment were $93.7 million, down 21% year over year.

Adjusted R&D and SG&A expenses were 7.3% and 44.3% of net sales, respectively.

2019 Results

The company’s earnings came in at $1.94 per share compared with $1.83 in 2018.

It reported revenues of $1.3 billion, up 7.7% year over year.

2020 Guidance

The company expects full-year 2020 net sales between $1.40 billion and $1.42 billion.  Krystexxa full-year net sales growth is expected to be more than 25%. Tepezza full-year net sales are estimated in the band of $30-$40 million. 

Other Pipeline Updates

In February 2020, the FDA approved Procysbi delayed-release oral granules in packets for adults and children one year of age and older living with nephropathic cystinosis. This new dosage form provides another administration option for patients, in addition to the currently available Procysbi capsules. This new dosage form provides another administration option for patients, in addition to the currently available Procysbi capsules.

On Jan 21, 2020, the FDA approved teprotumumab-trbw for the treatment of thyroid eye disease (TED), well ahead of the action date of Mar 8, 2020. Teprotumumab will be marketed under the brand name Tepezza. Tepezza is the first and only FDA-approved medicine for the treatment of TED - a serious, progressive and vision-threatening rare autoimmune disease.

In January 2020, the company announced top-line results from the MIRROR open-label trial, which evaluated the use of the immunomodulator methotrexate with Krystexxa to increase the complete response rate of Krystexxa. The results showed that 79%, or 11 of 14 patients enrolled, achieved a complete response at month 6. The 79% response rate is nearly double the 42% response rate in the Krystexxa phase III clinical program, which evaluated Krystexxa alone.

Zacks Rank & Stocks to Consider

Horizon Therapeutics currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector include Agenus Inc. (AGEN - Free Report) , Regeneron Pharmaceuticals Inc. (REGN - Free Report) and Aduro Biotech Inc. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agenus’ loss per share estimates for 2020 have narrowed from $1.37 to $1.25 in the past 60 days. The company delivered a four-quarter positive earnings surprise of 23.8%, on average.

Regeneron’s earnings per share estimates have moved up from $26.76 to $28.31 for 2020 and from $28.61 to $28.93 for 2021 in the past 90 days. The company delivered an average positive earnings surprise of 1.4% in the trailing four quarters.

Aduro’s loss per share estimates for 2020 have narrowed from 86 cents to 77 cents in the past 60 days.

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