Radius Health (RDUS) Posts Wider-Than-Expected Q2 Loss – Tale of the Tape

Zacks

Radius Health, Inc. (RDUS) is a Waltham, Massachusetts-based development-stage biopharmaceutical company with a focus on the development of new therapeutics for the treatment of osteoporosis and other serious endocrine-mediated diseases.

With no approved products in its portfolio, Radius Health has not generated revenues yet. In this scenario, investor focus remains on updates on pipeline progress. Candidates in the company’s pipeline include the subcutaneous formulation and transdermal patch of abaloparatide, RAD1901 and RAD140. The company is planning to file for approval of abaloparatide-SC in the U.S. and Europe by 2015-end.

Although Radius Health beat estimates in three of the last four trailing quarters, the company delivered an average negative earnings surprise of -58.78%. Loss estimates for 2015 remains flat over the last 30 days.

Currently, Radius Health has a Zacks Rank #2 (Buy), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Radius Health posted wider-than-expected loss in the second quarter of 2015. While our consensus called for a loss of 50 cents per share, the company reported a loss of 61 cents.

Revenue: With no approved product in its portfolio, Radius Health has not generated any revenues in the second quarter of 2015.

Key Stats: Radius Health’s efforts towards the development of its pipeline are encouraging. The company is currently gearing up for the submission of marketing applications for abaloparatide-SC in the U.S. and Europe. Meanwhile, Radius Health obtained the worldwide rights to RAD1901 by amending its license agreement with Eisai Co. Ltd. (ESALY). The company is enrolling patients in a phase I study on RAD1901 in the U.S. for metastatic breast cancer and is on track to start a phase I study on the candidate in the EU for the same indication in 2015. A phase IIb study on low-dose RAD1901 as a selective estrogen receptor modulator for the potential treatment of vasomotor symptoms is slated for initiation later this year.

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