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Why Is Radius Health (RDUS) Down 6.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Radius Health (RDUS - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Radius Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Radius Q3 Earnings Beat Estimates on Tymlos Strength
Radius incurred a loss of 65 cents per share in the third quarter, narrower than the year-ago quarter’s loss of $1.09 and the Zacks Consensus Estimate of a loss of 80 cents. The year-over-year improvement was backed by increased revenues.
The company reported revenues of $46.8 million, marginally surpassing the Zacks Consensus Estimate of $46 million and increasing from $27.6 million in the year-ago quarter.
Quarter in Detail
We remind investors that Radius obtained the FDA approval for Tymlos (abaloparatide) injection in April 2017 for the treatment of postmenopausal women with osteoporosis at high risk of fracture. The company began shipments of the drug to wholesalers at the end of May 2017.
Tymlos gained traction in the third quarter of 2019. Radius increased its market share with Tymlos capturing 38% of the U.S. anabolic osteoporosis market (based on Patient Months on Therapy, TRx PMOT), on average, in the third quarter. In October, Tymlos achieved 50% NBRx share, on average, and its total market TRx share increased to 40%. The anabolic market grew 4% in the third quarter from the prior-year quarter.
Research & development expenses for the reported quarter were $31.8 million, up 18.6% year over year. General & administrative expenses decreased 18.4% to $35.6 million.
Pipeline Updates
The pipeline includes abaloparatide injection for potential use in the treatment of men with osteoporosis, abaloparatide patch for potential use in osteoporosis and elacestrant (RAD1901) for potential use in hormone receptor-positive breast cancer.
Enrollment is ongoing in the EMERALD phase III monotherapy study of elacestrant, with completion of recruitment targeted in the third quarter of 2020. However, Radius is evaluating all strategic options for its oncology assets to maximize their potential and does not plan to initiate further clinical trials for elacestrant or RAD140 beyond the ongoing EMERALD study.
In August, the first patient was randomized in the phase III wearABLe clinical trial, assessing the safety and efficacy of abaloparatide-patch in postmenopausal patients with osteoporosis at high risk for fracture. However, patient enrollment has been slower than expected due to a higher-than-anticipated screen failure rate. A revised enrollment plan is being implemented that includes identified measures to improve site recruitment efforts, including adding sites outside the United States. Top-line data from the study is expected in the second half of 2021.
2019 Sales Guidance
Radius now expects Tymlos net revenues to be $168-$172 million (the previous guidance was $165-$170 million) for 2019.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Radius Health has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Radius Health has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Radius Health (RDUS) Down 6.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Radius Health (RDUS - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Radius Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Radius Q3 Earnings Beat Estimates on Tymlos Strength
Radius incurred a loss of 65 cents per share in the third quarter, narrower than the year-ago quarter’s loss of $1.09 and the Zacks Consensus Estimate of a loss of 80 cents. The year-over-year improvement was backed by increased revenues.
The company reported revenues of $46.8 million, marginally surpassing the Zacks Consensus Estimate of $46 million and increasing from $27.6 million in the year-ago quarter.
Quarter in Detail
We remind investors that Radius obtained the FDA approval for Tymlos (abaloparatide) injection in April 2017 for the treatment of postmenopausal women with osteoporosis at high risk of fracture. The company began shipments of the drug to wholesalers at the end of May 2017.
Tymlos gained traction in the third quarter of 2019. Radius increased its market share with Tymlos capturing 38% of the U.S. anabolic osteoporosis market (based on Patient Months on Therapy, TRx PMOT), on average, in the third quarter. In October, Tymlos achieved 50% NBRx share, on average, and its total market TRx share increased to 40%. The anabolic market grew 4% in the third quarter from the prior-year quarter.
Research & development expenses for the reported quarter were $31.8 million, up 18.6% year over year. General & administrative expenses decreased 18.4% to $35.6 million.
Pipeline Updates
The pipeline includes abaloparatide injection for potential use in the treatment of men with osteoporosis, abaloparatide patch for potential use in osteoporosis and elacestrant (RAD1901) for potential use in hormone receptor-positive breast cancer.
Enrollment is ongoing in the EMERALD phase III monotherapy study of elacestrant, with completion of recruitment targeted in the third quarter of 2020. However, Radius is evaluating all strategic options for its oncology assets to maximize their potential and does not plan to initiate further clinical trials for elacestrant or RAD140 beyond the ongoing EMERALD study.
In August, the first patient was randomized in the phase III wearABLe clinical trial, assessing the safety and efficacy of abaloparatide-patch in postmenopausal patients with osteoporosis at high risk for fracture. However, patient enrollment has been slower than expected due to a higher-than-anticipated screen failure rate. A revised enrollment plan is being implemented that includes identified measures to improve site recruitment efforts, including adding sites outside the United States. Top-line data from the study is expected in the second half of 2021.
2019 Sales Guidance
Radius now expects Tymlos net revenues to be $168-$172 million (the previous guidance was $165-$170 million) for 2019.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, Radius Health has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Radius Health has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.