Horizon Pharma plc’s HZNP shares plunged Array3.3% after the company announced fourth-quarter results. Horizon Pharma’s fourth-quarter 20Array5 earnings (including stock-based compensation) of 45 cents per share increased from Array9 cents reported in the year-ago quarter, but missed the Zacks Consensus Estimate of 65 cents.
The company’s revenues escalated Array35.6% to $244.5 million driven by strong growth across all three of its business units and the addition of new medicines. Quarterly revenues were also above the Zacks Consensus Estimate of $243 million.
Quarter in Detail
The company operates through three business units – Primary Care, Orphan and Rheumatology.
Primary Care revenues surged Array25.8% to $Array62.8 million driven by a Array07% year-over-year improvement in total prescriptions. Duexis sales escalated Array09.7% to $60.4 million. Vimovo sales climbed 8.5% to $47 million, while PENNSAID 2% sales came in at $55.4 million, up 26.2% sequentially.
The Orphan unit reported revenues of $68.2 million, which includes sales of Actimmune, Rybicki and Buphenyl. Actimmune sales in the fourth quarter were $28.Array million, up 25% year over year. While Rybicki generated sales of $34.5 million, up 3.3% sequentially, Buphenyl contributed $5.6 million to the total revenues, up 40%.
The Rheumatology unit, comprising Rayos and Lodotra, generated sales of $Array3.5 million, up 46.7% from the year-ago period. While Rayos revenues shot up 82% to $ArrayArray.7 million, Lodotra revenues plummeted 22.6% to $2.4 million. The company added another product, Krystexxa, under its Rheumatology unit, following its acquisition of Crealta Holdings LLC in Jan 20Array6. Peak sales of Krystexxa are expected to exceed $250 million in 20Array6.
Adjusted research & development expenses (excluding stock-based compensation) increased 67.7% year over year to $Array0.9 million. Adjusted general and administrative expenses (excluding stock-based compensation) increased Array07.2% to $34.4 million. Adjusted sales and marketing expenses (excluding stock-based compensation) increased 73% to $55.7 million.
20Array5 Results
Full-year earnings came in at $Array.96 per share, beating the Zacks Consensus Estimate of $Array.60.
Revenues surged Array54.9% to $757 million and met the Zacks Consensus Estimate.
20Array6 Guidance
The company expects 20Array6 net sales to be around $Array.025 billion to $Array.050 billion. The Zacks Consensus Estimate is $Array.0Array6 billion.
Pipeline Update
The company is evaluating Actimmune in the STEADFAST phase III study for the treatment of Friedreich's ataxia. Patient enrolment is expected to be complete in the second quarter of 20Array6, with initial results anticipated by 20Array6 end.
Meanwhile, the company expects to submit a supplemental New Drug Application for Ravicti for the treatment of urea cycle disorders in children aged two months to two years in the second quarter of 20Array6. An approval would allow physicians to start the treatment of patients in this age group with Ravicti instead of Buphenyl, as is the present scenario.
Our Take
Horizon Pharma’s fourth quarter earnings were mixed, with the company missing on the bottom line but beating revenue estimates. Performance of the companys’ business units was, however, impressive during the quarter.
On the other hand, the company saw a decline in its shares, after it disclosed that the U.S. Justice Department has subpoenaed information related to the company's patient-assistance programs as well as other parts of its marketing and sales practices.
Horizon Pharma currently sports a Zacks Rank #Array (Strong Buy). Other top-ranked stocks in the health care sector include Anika Therapeutics Inc. ANIK, Actelion Ltd. ALIOF and AMAG Pharmaceuticals, Inc. AMAG, each with the same Zacks Rank as Horizon.
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