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Horizon's (HZNP) Q2 Earnings and Revenues Beat, Stock Up
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Horizon Therapeutics Public Limited Company reported second-quarter 2021 adjusted earnings of $1.62 per share, which beat the Zacks Consensus Estimate of 91 cents and also increased from the year-ago quarter’s adjusted earnings of 40 cents. A significant surge in revenues improved the bottom line.
Quarterly sales of $832.5 million surged 80% year over year and surpassed the Zacks Consensus Estimate of $707 million. Sales were up in the second quarter following the relaunch of Tepezza for treating thyroid eye disease (TED).
Shares of Horizon Therapeutics were up 7.7% on Aug 4 following strong second-quarter results and a raised guidance. In fact, the stock has rallied 47% in the year so far compared with the industry’s increase of 1%.
Image Source: Zacks Investment Research
Quarter in Detail
The company reports financial results under two segments, namely Orphan (previously known as the Orphan and Rheumatology segment) and Inflammation (previously known as the primary care segment).
Sales in the Orphan segment were $746.5 million, up 97% from the prior-year figure, driven by the strong relaunch of Tepezza as well as continued growth of drugs like Krystexxa, Ravicti and Procysbi. The segment represented almost 90% of total second-quarter net sales.
Krystexxa sales surged 73% year over year to $130.3 million. Tepezza generated net sales worth $453.3 million in the second quarter, up 173% year over year. Tepezza was relaunched in the United States after sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders in the previous quarters.
Ravicti sales were $68.4 million in the quarter, up 4% year over year.
Procysbi sales were $49.8 million in the quarter, up 20% year over year
Net sales in the Inflammation segment were $86 million, up 3% year over year.
Adjusted research and development expenses were $81.1 million, up from $28.2 million in the year-ago quarter. Adjusted SG&A expenses were $281 million, up from $191.4 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $812.3 million as of Jun 30, 2021, marginally up from $811.6 million as of Mar 31, 2021.
2021 Guidance
Horizon Therapeutics revised the financial guidance it provided earlier this year.
The company expects 2021 net sales between $3.025 billion and $3.125 billion compared with the previous expectation of $2.75-$2.85 billion. The Zacks Consensus Estimate stands at $2.83 billion.
The company expects Tepezza net sales to be greater than $1.55 billion compared with the previous expectation of $1.275 billion. Krystexxa net sales are expected to be above $500 million, unchanged from the previous expectation.
Other Updates
During the quarter under review, the company initiated enrollment of patients in three different clinical studies to evaluate its pipeline candidates.
In May 2021, it enrolled its first patient in an open-label study to evaluate Krystexxa combined with methotrexate in patients who were not complete responders to treatment with Krystexxa monotherapy.
In June, the company began a phase II study to evaluate the safety and efficacy of its novel investigational monoclonal antibody HZN-7734 to treat people with moderate-to-severely active systemic lupus erythematosus (SLE), the most common form of lupus.
In July, the first patient was enrolled in a phase I study to evaluate HZN-1116 in patients with autoimmune diseases.
In June 2021, the company entered into an agreement with Arrowhead Pharmaceuticals Inc. for a discovery-stage investigational RNA interference (“RNAi”) therapeutic targeting xanthine dehydrogenase (XDH) to potentially treat people with uncontrolled gout.
Repligen’s earnings per share estimates for 2021 have increased from $2.26 to $2.69 in the past 30 days. The same for 2022 has risen from $2.56 to $2.94 over the same period. The stock has rallied 31.9% in the year so far.
Vertex’s earnings per share estimates for 2021 have been raised from $11.20 to $12.28 in the past 30 days. The same for 2022 has been revised upward from $12.25 to $13.02 over the same period.
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Horizon's (HZNP) Q2 Earnings and Revenues Beat, Stock Up
Horizon Therapeutics Public Limited Company reported second-quarter 2021 adjusted earnings of $1.62 per share, which beat the Zacks Consensus Estimate of 91 cents and also increased from the year-ago quarter’s adjusted earnings of 40 cents. A significant surge in revenues improved the bottom line.
Quarterly sales of $832.5 million surged 80% year over year and surpassed the Zacks Consensus Estimate of $707 million. Sales were up in the second quarter following the relaunch of Tepezza for treating thyroid eye disease (TED).
Shares of Horizon Therapeutics were up 7.7% on Aug 4 following strong second-quarter results and a raised guidance. In fact, the stock has rallied 47% in the year so far compared with the industry’s increase of 1%.
Image Source: Zacks Investment Research
Quarter in Detail
The company reports financial results under two segments, namely Orphan (previously known as the Orphan and Rheumatology segment) and Inflammation (previously known as the primary care segment).
Sales in the Orphan segment were $746.5 million, up 97% from the prior-year figure, driven by the strong relaunch of Tepezza as well as continued growth of drugs like Krystexxa, Ravicti and Procysbi. The segment represented almost 90% of total second-quarter net sales.
Krystexxa sales surged 73% year over year to $130.3 million. Tepezza generated net sales worth $453.3 million in the second quarter, up 173% year over year. Tepezza was relaunched in the United States after sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders in the previous quarters.
Ravicti sales were $68.4 million in the quarter, up 4% year over year.
Procysbi sales were $49.8 million in the quarter, up 20% year over year
Net sales in the Inflammation segment were $86 million, up 3% year over year.
Adjusted research and development expenses were $81.1 million, up from $28.2 million in the year-ago quarter. Adjusted SG&A expenses were $281 million, up from $191.4 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $812.3 million as of Jun 30, 2021, marginally up from $811.6 million as of Mar 31, 2021.
2021 Guidance
Horizon Therapeutics revised the financial guidance it provided earlier this year.
The company expects 2021 net sales between $3.025 billion and $3.125 billion compared with the previous expectation of $2.75-$2.85 billion. The Zacks Consensus Estimate stands at $2.83 billion.
The company expects Tepezza net sales to be greater than $1.55 billion compared with the previous expectation of $1.275 billion. Krystexxa net sales are expected to be above $500 million, unchanged from the previous expectation.
Other Updates
During the quarter under review, the company initiated enrollment of patients in three different clinical studies to evaluate its pipeline candidates.
In May 2021, it enrolled its first patient in an open-label study to evaluate Krystexxa combined with methotrexate in patients who were not complete responders to treatment with Krystexxa monotherapy.
In June, the company began a phase II study to evaluate the safety and efficacy of its novel investigational monoclonal antibody HZN-7734 to treat people with moderate-to-severely active systemic lupus erythematosus (SLE), the most common form of lupus.
In July, the first patient was enrolled in a phase I study to evaluate HZN-1116 in patients with autoimmune diseases.
In June 2021, the company entered into an agreement with Arrowhead Pharmaceuticals Inc. for a discovery-stage investigational RNA interference (“RNAi”) therapeutic targeting xanthine dehydrogenase (XDH) to potentially treat people with uncontrolled gout.
Horizon Therapeutics Public Limited Company Price
Horizon Therapeutics Public Limited Company price | Horizon Therapeutics Public Limited Company Quote
Zacks Rank & Stocks to Consider
Horizon currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are Repligen (RGEN - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Repligen’s earnings per share estimates for 2021 have increased from $2.26 to $2.69 in the past 30 days. The same for 2022 has risen from $2.56 to $2.94 over the same period. The stock has rallied 31.9% in the year so far.
Vertex’s earnings per share estimates for 2021 have been raised from $11.20 to $12.28 in the past 30 days. The same for 2022 has been revised upward from $12.25 to $13.02 over the same period.