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Horizon (HZNP) Q4 Earnings Beat Estimates, Revenues Rise Y/Y

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Horizon Therapeutics plc reported fourth-quarter 2021 adjusted earnings of $1.41 per share, which beat the Zacks Consensus Estimate of $1.27. The company reported adjusted earnings of $1.17 in the year-ago quarter.

Quarterly sales of $1.01 billion rose 36% year over year and surpassed the Zacks Consensus Estimate of $996 million. Sales were up due to the high uptake of Tepezza for treating thyroid eye disease (TED). The sale of the drug has exceeded management’s expectations.

Shares of Horizon were up 6.5% on Tuesday, following the announcement of the better-than-expected earnings results. The stock has gained 6.6% in the past year against the industry’s decline of 34.3%.

 

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Full-Year Results

For 2021, Horizon generated total revenues of $3.23 billion compared with $2.20 billion recorded in 2020.

For the year, the company reported adjusted earnings of $4.62 per share compared with $3.75 per share reported in 2020.

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 $940.5 million, up 50% from the prior-year figure, driven by the strong relaunch of Tepezza, as well as continued growth of drugs like Krystexxa and Ravicti, among others. The segment represented 93% of the total fourth-quarter net sales.

Krystexxa sales rose 32% year over year to $170.3 million. Tepezza generated net sales of $589.6 million in the fourth quarter, up 72% year over year. Tepezza was relaunched in the United States in April 2021 after sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders, which began in December 2020.

Ravicti sales were $74.4 million in the quarter, up 6% year over year.

Procysbi sales were $47.4 million in the quarter, flat year over year.

However, net sales in the Inflammation segment were $74 million, down 37% year over year.

Adjusted research and development expenses were $115.4 million, up from $68.4 million in the year-ago quarter. Adjusted SG&A expenses were $344.9 million, up from $240.6 million in the year-ago quarter.

The company had cash, cash equivalents and investments worth $1.58 billion as of Dec 31, 2021, up from $1.07 billion as of Sep 30, 2021.

2022 Guidance

Horizon expects net sales of $3.9-$4.0 billion for 2022. The Zacks Consensus Estimate for the metric is pegged at $4.02 billion.

Recent Updates

In January 2022, Horizon submitted a supplemental biologics license application (sBLA) to the FDA for the label expansion of Krystexxa. The sBLA is seeking approval of Krystexxa plus methotrexate for the treatment of people living with uncontrolled gout. The regulatory body is expected to complete its review in the second half of 2022.

Krystexxa is currently approved for the treatment of adult patients with chronic gout refractory to conventional therapies, also called uncontrolled gout.

In January 2022, Horizon enrolled the first patient in a pivotal phase IIb study evaluating its lysophosphatidic acid receptor 1 antagonist, HZN-825, for the treatment of idiopathic pulmonary fibrosis. The company enrolled the first patient in the pivotal phase IIb study evaluating HZN-825 for treating diffuse cutaneous systemic sclerosis in November 2021.

In November 2021, Horizon enrolled the first patient in a phase I exploratory study, which is evaluating Tepezza in patients with diffuse cutaneous systemic sclerosis.

Zacks Rank & Stocks to Consider

Horizon currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the biotech sector are Axsome Therapeutics, Inc. (AXSM - Free Report) , Vertex Pharmaceuticals Incorporated (VRTX - Free Report) and Kaleido Biosciences, Inc. , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Axsome Therapeutics’ loss per share estimates have narrowed 0.5% for 2022 over the past 60 days.

Earnings of Axsome Therapeutics have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.

Vertex’s earnings estimates have been revised 7.6% upward for 2022 over the past 60 days. The VRTX stock has gained 10.6% in the past year.

Vertex’s earnings have surpassed estimates in each of the trailing four quarters.

Kaleido Biosciences’ loss per share estimates have narrowed 11.3% for 2022 over the past 60 days.

Earnings of Kaleido Biosciences have surpassed estimates in three of the trailing four quarters and missed the same on the other occasion.


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