Horizon Pharma PLC: HZNP Stock Pops After HUGE Earnings Beat

Advertisement

Shares of Horizon Pharma PLC (NASDAQ:HZNP) took off Monday morning after the pharmaceutical firm reported a hefty second-quarter earnings beat, sending HZNP stock up about 10% on the news.

Horizon Pharma PLC: HZNP Stock Pops After HUGE Earnings BeatHZNP shares’ gains have since tapered to about 5% as of this writing, but its outstanding revenue and earnings beat stands.

Where analysts expected per-share earnings of 50 cents on $234.8 million in sales, Horizon posted adjusted earnings of 62 cents on $257.4 million.

The result understandably excited Horizon Pharma CEO Timothy P. Walbert just as much as the HZNP stock pop excited shareholders:

“We exceeded our expectations for the second quarter with another quarter of record net sales and remain on track to meet our objectives for the full year. We continued to execute across all levels of the organization, generating new patient and prescription growth and advancing our pipeline of orphan medicines, including the completion of enrollment in our Phase 3 clinical trial for ACTIMMUNE in Friedreich’s ataxia and the submission of our supplemental new drug application for RAVICTI.”

HZNP Stock Earnings Rundown

Year-over-year sale growth of 49% was driven by Horizon’s orphan, rheumatology and primary care segments.

In the orphan unit, HZNP succeeded with Ravicti and Actimmune, seeing respective sales of $39.4 million and $30 million. That’s an increase of 107% and 16% year over year, respectively.

Also notable were sales of Krystexxa and Pennsaid from Horizon’s rheumatology and primary care units. Krystexxa brought in $19.9 million, while Pennsaid sales increased 147% YoY to $72.7 million.

The company is also opening supplemental new drug applications for Ravicti, hoping to expand its treatment range to as early as two months of age and up for patients with urea cycle disorders, and came to an agreement with CVS Health Corp (NYSE:CVS) to remove Duexis and Vimovo from CVS Caremark’s exclusion list.

What’s more, Horizon Pharma PLC announced an agreement to buy global rights to Actimmune (currently sold in about 30 countries) by the end of the year. Actimmune, widely known around the world as “interferon gamma 1-b,” treats chronic granulomatous disease, a genetic immune-system disorder occurring in 1 out of every 200,000 to 250,000 people worldwide. That means about four or five people in every million will get the condition.

That’s not a huge market, but it’s a welcome addition to a company that derives some 36% of its sales from medicines for rare diseases.

As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities. 

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2016/08/horizon-pharma-hznp-stock/.

©2024 InvestorPlace Media, LLC