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Global Blood's (GBT) Q2 Earnings Beat, Revenues Rise Y/Y
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Global Blood Therapeutics, Inc. incurred a loss of $1.12 per share in second-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $1.17. In the year-ago quarter, the company had reported a loss of 86 cents per share.
The company’s revenues of $47.6 million, comprising solely of Oxbryta (voxelotor) sales, also beat the Zacks Consensus Estimate of $44 million. Global Blood had generated $31.5 million in product sales in the year-ago quarter.
Shares of Global Blood were up 9.3% in after-hours trading on Tuesday following announcement of the better-than-expected earnings results. However, the stock has plunged 37.9% year to date compared with the industry’s decline of 1.1%.
Image Source: Zacks Investment Research
Quarter in Details
Oxbryta sales increased 22% sequentially in the second quarter, owing to higher patient demand. The company recorded around 925 new prescriptions of Oxbryta in the second quarter despite the ongoing COVID-19 pandemic in the United States during the same time.
Research and development expenses in the reported quarter were $51.8 million, up 51.9% year over year, primarily attributable to higher external costs related to the company’s preclinical programs.
Selling, general and administrative expenses were $61.1 million in the reported quarter, up 24.4% year over year due to higher employee-related costs, and increased professional and consulting services cost.
As of Jun 30, 2021, Global Blood had cash, cash equivalents and marketable securities worth $437.4 million compared with $482 million as of Mar 31, 2021.
Pipeline Update
Oxbryta is approved by the FDA as an oral, once-daily treatment for sickle cell disease (“SCD”) in patients aged 12 years or above.
In July 2021, Global Blood submitted a supplemental new drug application (sNDA) to the FDA seeking accelerated approval of Oxbryta for the treatment of SCD in children aged four to 11 years. The company also submitted a separate new drug application (“NDA”) to seek approval for a pediatric weight-based formulation of Oxbryta.
The company has requested the FDA for priority review of the sNDA and NDA for Oxbryta. A potential label expansion of the drug should drive sales in the future quarters.
In March 2021, Global Blood entered into an agreement with Sanofi (SNY - Free Report) to in-license worldwide rights to two early-stage research programs in SCD. The two programs will pursue a novel anti-sickling mechanism as well as one that leverages a new approach to reduce inflammation and oxidative stress.
Global Blood Therapeutics, Inc. Price, Consensus and EPS Surprise
Bio-Techne’s earnings estimates have been revised 0.2% upward for 2021 and 1.7% upward for 2022 over the past 60 days. The stock has rallied 51.5% year to date.
Repligen’s earnings estimates have been revised 19% upward for 2021 and 14.8% upward for 2022 over the past 60 days. The stock has rallied 30% year to date.
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Global Blood's (GBT) Q2 Earnings Beat, Revenues Rise Y/Y
Global Blood Therapeutics, Inc. incurred a loss of $1.12 per share in second-quarter 2021, narrower than the Zacks Consensus Estimate of a loss of $1.17. In the year-ago quarter, the company had reported a loss of 86 cents per share.
The company’s revenues of $47.6 million, comprising solely of Oxbryta (voxelotor) sales, also beat the Zacks Consensus Estimate of $44 million. Global Blood had generated $31.5 million in product sales in the year-ago quarter.
Shares of Global Blood were up 9.3% in after-hours trading on Tuesday following announcement of the better-than-expected earnings results. However, the stock has plunged 37.9% year to date compared with the industry’s decline of 1.1%.
Image Source: Zacks Investment Research
Quarter in Details
Oxbryta sales increased 22% sequentially in the second quarter, owing to higher patient demand. The company recorded around 925 new prescriptions of Oxbryta in the second quarter despite the ongoing COVID-19 pandemic in the United States during the same time.
Research and development expenses in the reported quarter were $51.8 million, up 51.9% year over year, primarily attributable to higher external costs related to the company’s preclinical programs.
Selling, general and administrative expenses were $61.1 million in the reported quarter, up 24.4% year over year due to higher employee-related costs, and increased professional and consulting services cost.
As of Jun 30, 2021, Global Blood had cash, cash equivalents and marketable securities worth $437.4 million compared with $482 million as of Mar 31, 2021.
Pipeline Update
Oxbryta is approved by the FDA as an oral, once-daily treatment for sickle cell disease (“SCD”) in patients aged 12 years or above.
In July 2021, Global Blood submitted a supplemental new drug application (sNDA) to the FDA seeking accelerated approval of Oxbryta for the treatment of SCD in children aged four to 11 years. The company also submitted a separate new drug application (“NDA”) to seek approval for a pediatric weight-based formulation of Oxbryta.
The company has requested the FDA for priority review of the sNDA and NDA for Oxbryta. A potential label expansion of the drug should drive sales in the future quarters.
In March 2021, Global Blood entered into an agreement with Sanofi (SNY - Free Report) to in-license worldwide rights to two early-stage research programs in SCD. The two programs will pursue a novel anti-sickling mechanism as well as one that leverages a new approach to reduce inflammation and oxidative stress.
Global Blood Therapeutics, Inc. Price, Consensus and EPS Surprise
Global Blood Therapeutics, Inc. price-consensus-eps-surprise-chart | Global Blood Therapeutics, Inc. Quote
Zacks Rank & Other Stocks to Consider
Global Blood currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the biotech sector include Bio-Techne Corporation (TECH - Free Report) and Repligen Corporation (RGEN - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bio-Techne’s earnings estimates have been revised 0.2% upward for 2021 and 1.7% upward for 2022 over the past 60 days. The stock has rallied 51.5% year to date.
Repligen’s earnings estimates have been revised 19% upward for 2021 and 14.8% upward for 2022 over the past 60 days. The stock has rallied 30% year to date.