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Horizon (HZNP) Marketed Drugs Aid Growth, Stiff Rivalry a Woe

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Horizon Therapeutics plc is making good progress with its portfolio of marketed drugs that are approved for various inflammatory diseases.

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).

HZNP got a big boost when the FDA approved Tepezza as a treatment for patients with thyroid eye disease (TED) in 2020. With this nod, Tepezza became the first FDA-approved medicine for the treatment of active TED, which has a significant unmet need. The drug has been a key top-line driver for the company since then.

Tepezza is also being evaluated in a late-stage study for the treatment of chronic (inactive) TED. A phase I study is investigating Tepezza in patients with diffuse cutaneous systemic sclerosis (dcSSc). A potential label expansion will boost sales of the drug in the days ahead.

Shares of Horizon have plunged 44.6% this year compared with the industry’s decline of 22%.

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Other marketed drugs, Krystexxa, Actimmune, Procysbi and Ravicti, are also making good progress. HZNP is currently working on the label expansion of these drugs.

In July 2022, the FDA approved the supplemental biologics license application (“sBLA”) for the combination use of Krystexxa. The FDA approved Krystexxa injection plus methotrexate to help more people with uncontrolled gout to achieve a complete response to therapy. Several other studies on Krystexxa are also underway.

Label expansion of other drugs is likely to boost sales further in 2022 and beyond.

Though the company is riding on the success of its portfolio of marketed drugs, stiff competition from pharmaceutical and biotechnology companies remains a major concern for Horizon.

Meanwhile, during the second quarter of 2022, HZNP lowered Tepezza’s net sales percentage growth to the high-teens compared with the previous expectation of mid-30s percentage growth.

In December 2020, Tepezza sales have been negatively impacted by a short-term supply disruption due to the U.S. government-mandated COVID-19 vaccine orders. Such setbacks do not bode well for the company.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the biotech sector include Achilles Therapeutics plc (ACHL - Free Report) , Atara Biotherapeutics, Inc. (ATRA - Free Report) and ORIC Pharmaceuticals, Inc. (ORIC - Free Report) , 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.

Achilles Therapeutics’ loss per share estimates narrowed 6.4% for 2022 and 9.6% for 2023 in the past 60 days.

Earnings of Achilles Therapeutics surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. ACHL delivered an earnings surprise of 12.45%, on average.

Atara Biotherapeutics’ loss per share estimates narrowed 43.2% for 2022 and 31.8% for 2023 in the past 60 days.

Earnings of Atara Biotherapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. ATRA delivered an earnings surprise of 4.83%, on average.

ORIC Pharmaceuticals’ loss per share estimates narrowed 5.3% for 2022 and 15.8% for 2023 in the past 60 days.

Earnings of ORIC Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. ORIC delivered an earnings surprise of 8.85%, on average.

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