Horizon Therapeutics plc (HZNP - Free Report) reported first-quarter 2020 adjusted earnings of 40 cents per share, which comprehensively beat the Zacks Consensus Estimate of 23 cents. Moreover, the figure came head of the year-ago quarterly earnings of 30 cents per share.
Quarterly sales of $355.9 million were up 27% year over year. The top line also beat the Zacks Consensus Estimate of $284 million.
Last May, the company’s shareholders approved the change in its name to Horizon Therapeutics.
Horizon Therapeutics’ share price has rallied 17.7% year to date compared with the industry’s increase of 3.7%.
Quarter in Detail
The company realigned its structure to operate two separate businesses, effective second-quarter 2018. It reports financial results under two separate segments, namely orphan and rheumatology, and Inflammation (previously known as the primary care segment). Notably, from the first quarter of 2020 onward, the orphan and rheumatology segment was renamed the orphan segment.
Sales of the orphan segment, the company’s strategic growth unit, were $245.4 million, up 47% from the prior-year figure, driven by continued growth of Krystexxa, Ravicti and the launch of Tepezza. Krystexxa sales soared 78% year over year to $93.3 million.
Tepezza generated net sales worth $23.5 million in the first quarter, exceeding management’s expectations. Per the company, this strong start for Tepezza was owing to significantly higher number of patients beginning therapy than initially expected.
First-quarter 2020 net sales of the Inflammation segment were $110.5 million, down 3% year over year.
Adjusted R&D and SG&A expenses were 5.8% and 69.6% of net sales, respectively, during the quarter.
Per the company, owing to the strong uptake of Tepezza and its sunstantially higher revenues that more than offset the expected adversity from the COVID-19 pandemic, Horizon Therapeutics raised its full-year net sales guidance. The updated view assumes that healthcare activity will be resumed in the second half of 2020.
The company now expects 2020 net sales between $1.40billion and $1.45 billion, which were earlier projected in the range of $1.40-$1.42 billion. Tepezza’s full-year net sales are estimated to be more than $200 million compared to its previous outlook of $30-$40 million.
Other Pipeline Updates
In January 2020, the FDA approved teprotumumab-trbw for the treatment of thyroid eye disease (TED), well ahead of the set action date of Mar 8, 2020. Teprotumumab will be marketed under the brand name Tepezza. Tepezza is the first and the only FDA-approved medicine for the treatment of TED, a serious, progressive and vision-threatening rare autoimmune disease.
In February, the FDA approved Procysbi delayed-release oral granules in packets for adults and children aged one year and above, living with nephropathic cystinosis. This new dosage provides another administration option for patients in addition to the currently available Procysbi capsules. Last month, the company announced that Procysbi, currently available in the United States, can be ordered in 75 mg and 300 mg dosage strengths for adults and children aged one year and above, suffering nephropathic cystinosis.
In April, Horizon Therapeutics acquired the privately-held, biopharma company Curzion Pharmaceuticals, Inc. and its development-stage oral selective lysophosphatidic acid 1 receptor (LPAR1) antagonist, CZN001 (renamed HZN-825), for the treatment of diffuse cutaneous systemic sclerosis (dcSSc). The company expects to begin a pivotal phase IIb study on the same in the first half of 2021.
Horizon Therapeutics plc Price, Consensus and EPS Surprise
Zacks Rank & Stocks to Consider
Horizon Therapeutics currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the healthcare sector include Menlo Therapeutics Inc. (MNLO - Free Report) , Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and Abeona Therapeutics Inc (ABEO - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Menlo Therapeutics’ loss per share estimates have narrowed 38.2% for 2020 and 66.7% for 2021 over the past 60 days.
Vertex’s earnings estimates have been revised 16.2% upward for 2020 and 7.2% for 2021 over the past 60 days. The stock has soared 22.6% year to date.
Abeona Therapeutics’ loss per share estimates have narrowed 21.1% for 2020 and 14.5% for 2021 over the past 60 days.
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