Hyperion Therapeutics, Inc. (HPTX) reported second-quarter 2013 loss of 27 cents per share, significantly narrower than the year-ago loss of $15.26 per share, but wider than the Zacks Consensus Estimate of a loss of 16 cents per share.
Quarter in Details
Quarterly revenues came in at $7.3 million. The company did not report revenues in the year-ago period. Reported revenues were higher than the Zacks Consensus Estimate of $2 million. The company has two marketed products, Ravicti and Buphenyl.
Research and development (R&D) expenses decreased 3.7% to $2.5 million. Hyperion is developing glycerol phenylbutyrate (GPB) for the treatment of hepatic encephalopathy (HE). Hyperion completed a phase II study in HE which led to the decrease in R&D expenses due to reduced clinical development costs.
Selling, general, and administrative (SG&A) expenses increased sharply by 326% to $8.1 million.
The company expects operating expense between $41 million to $46 million for 2013 excluding stock based compensation and Buphenyl transaction related costs.
During the reported quarter, Hyperion acquired global rights to Buphenyl tablets and powder from Ucyclyd Pharma Inc., a subsidiary of Valeant Pharmaceuticals International, Inc. (VRX).
Buphenyl is approved by the U.S. Food and Drug Administration (FDA) to treat urea cycle disorders (UCD).Meanwhile, Ravicti was approved by the FDA in Feb 2013 as a nitrogen-binding agent for chronic management of adult and pediatric UCD patients more than two years of age who cannot be managed by dietary protein restriction and/or amino acid supplementation alone. In May 2013, Ravicti qualified for orphan drug designation in the U.S. The company is planning to begin a phase III study in HE by the end of 2014.
Hyperion currently carries a Zacks Rank #3 (Hold). Companies that look well-positioned include Actelion Ltd. (ALIOF) and Jazz Pharmaceuticals Public Limited Company (JAZZ), with a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively.
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