Horizon Therapeutics plc HZNP reported second-quarter 2020 adjusted earnings of 40 cents per share, which lagged the year-ago quarterly earnings of 49 cents per share. The Zacks Consensus Estimate stood at 40 cents.
Quarterly sales of $462.8 million were up 44% year over year. The top line also beat the Zacks Consensus Estimate of $365 million.Sales were driven by the strong launch of Tepezza, despite a challenging COVID-19 environment.
Horizon Therapeutics’ share price increased 23.6% following the earnings release as it raised its guidance for 2020. In fact, theshare price has skyrocketed 103.9% year to date compared with the industry’s increase of 5.7%.
Quarter in Detail
The company reports financial results under two separate segments —Orphan and Rheumatology, and Inflammation (previously known as the primary care segment). Notably, first-quarter 2020 onward, the Orphan and Rheumatology segment was renamed the Orphan segment.
Sales inthe Orphan segment were $379.3 million, up 87% from the prior-year figure, driven by continued growth of drugs like Tepezza and Ravicti.
Krystexxa sales declined 6% year over year to $75.2 million,reflecting the impact of COVID-19. Tepezza generated net sales worth $165.9 million in the second quarter which exceeded the company’s expectations up from sales $23.5 million in the sequentially prior quarter. In January 2020, the FDA approved Tepezza for the treatment of thyroid eye disease (TED), well ahead of the set action date of Mar 8, 2020.
Ravicti sales were $65.6 milllion in the quarter, up 30% year over year.
Second-quarter 2020 net sales inthe Inflammation segment were $83.5 million, down 29% year over year, reflecting the impacts of COVID-19.
Adjusted R&D expenses were $28.2 million, up from $21.9 million in the year-ago quarter. Adjusted SG&A expenses were $191.4 million, up from $145.4 million in the year-ago quarter.
2020 Guidance
Per the company, owing to the strong uptake of Tepezza and its substantially higher revenues that more than offset the expected adversity from the COVID-19 pandemic, Horizon Therapeutics significantly raised its full-year sales expectations fromTepezza and correspondingly the net sales guidance.
The company now expects 2020 net sales of $1.85-$1.90 billion, an increase from the previous guidance range of $1.40-$1.45 billion. The company now expects Tepezza’s2020 net sales to bemorethan $650 million compared with the previous guidance of greater than $200 million.
Other Pipeline Updates
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).
Horizon Therapeutics Public Limited Company Price, Consensus and EPS Surprise
Horizon Therapeutics Public Limited Company price-consensus-eps-surprise-chart | Horizon Therapeutics Public Limited Company Quote
Zacks Rank & Other Stocks to Consider
Horizon Therapeutics currently carries a Zacks Rank #1 (Strong Buy). Some other similar-ranked stocks in the healthcare sector include AC IMMUNE SA. ACIU, Emergent Biosolutions Inc. EBS and Alimera Sceinces Inc. ALIM. You can see the complete list of today’s Zacks #1 Rank stocks here.
AC IMMUNE’s loss per share estimates have narrowed from 92 cents to 90 cents for 2020 over the past 60 days.
Emergent’s earnings estimates have increasedfrom $2.85 to $5.60 for 2020 and from $3.35 to $6.67 for 2021 over the past 60 days.
Alimera’s loss per share estimates have narrowed from $2.33 to $1.31 for 2020 and from 63 cents to 52 cents for 2021 over the past 60 days.
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