For most investors, how much a stock’s price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you’d invested in Horizon Therapeutics (HZNP) ten years ago? It may not have been easy to hold on to HZNP for all that time, but if you did, how much would your investment be worth today?
Horizon Therapeutics’ Business In-Depth
With that in mind, let’s take a look at Horizon Therapeutics’ main business drivers.
Dublin, Ireland-based Horizon Therapeutics plc, previously known as Horizon Pharma plc, is a biopharmaceutical focused on making drugs in arthritis, pain, inflammatory and orphan diseases areas. Horizon Therapeutics (Horizon) was formed in September 2014, after Horizon, and Vidara acquired Ireland-based privately held specialty pharmaceutical company, Vidara Therapeutics International Ltd. through a reverse merger. On May 2, 2019, shareholders approved the change of the company’s name to Horizon Therapeutics. This move caters to the company’s long-term strategy to develop and commercialize innovative medicines addressing rare diseases, which currently have very few effective treatment options.
Horizon has been actively pursuing acquisitions to expand and diversify its portfolio. While the company acquired rights to Vimovo (November 2013) and Pennsaid 2% (October 2014) in the United States from AstraZeneca and Nuvo Research Inc. respectively, it acquired certain rights (in the United States, Canada, and Japan) to Actimmune through the September 2014 Vidara merger. Horizon acquired the global rights to Actimmune from Boehringer Ingelheim in June 2017. Ravicti and Buphenyl became part of company’s portfolio through the May 2015 Hyperion Therapeutics acquisition, and Migergot and Krystexxa (pegloticase injection) became part of the company’s portfolio through the January 2016 Crealta Holdings acquisition. In October 2016, Horizon acquired Raptor and added Procysbi and Quinsair to its portfolio.
In January 2020, the FDA granted approval to Tepezza (teprotumumab) as a treatment for patients with thyroid eye disease (TED).
The company generally reports its results under two operating segments —the Orphan and Rheumatology (now renamed as the Orphan segment), and the Inflammation segment.
For 2021, Horizon generated total revenues of $3.23 billion compared with $2.20 billion recorded in 2020. Sales from the Orphan segment came in at $2.89 billion while sales from the Inflammation segment were $330.9 million in 2021.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Horizon Therapeutics a decade ago, you’re probably feeling pretty good about your investment today.
A $1000 investment made in December 2012 would be worth $48,072.34, or a gain of 4,707.23%, as of December 20, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 165.89% and the price of gold went up 4.13% over the same time frame.
Analysts are anticipating more upside for HZNP.
Horizon’s earnings and revenues beat estimates in Q3. The company got a big boost with the approval of Tepezza for treating Thyroid Eye Disease (TED). The company’s top line is mainly driven by Krystexxa sales. The recent label expansion for Krystexxa also holds promise. Horizon is working on label expansion for several of its drugs, including Tepezza and Krystexxa, which is likely to further boost sales upon potential approval. However, Horizon is facing intense competition in the targeted markets for most of its marketed drugs, which remains a concern. It is also facing adverse effects of the COVID-19 pandemic, which has affected sales. Tepezza sales witnessed a year-over-year decline in the third quarter of 2022. Shares have underperformed the industry year to date.
Over the past four weeks, shares have rallied 47.27%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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