Horizon Therapeutics Public Limited Company HZNP reported third-quarter 2020 adjusted earnings of $1.74 per share, which increased from the year-ago quarterly earnings of 64 cents. The earnings also beat the Zacks Consensus Estimate of $1.
Quarterly sales of $636.4 million were up 90% year over year. The top line also beat the Zacks Consensus Estimate of $559 million.Sales were driven by the strong launch of Tepezza.
Horizon Therapeutics’ share price has skyrocketed 103.5% year to date against the industry’s decline of 8.0%.
Quarter in Detail
The company reports financial results under two separate segments —Orphan and Rheumatology, and Inflammation (previously known as the primary care segment). Notably, first-quarter 2020 onward, the Orphan and Rheumatology segment was renamed the Orphan segment.
Sales inthe Orphan segment were $534.8 million, up 131% from the prior-year figure, driven by continued growth of drugs like Tepezza, KrystexxaRavicti and Procysbi.
Krystexxa sales increased9% year over year to $108.5 million. Tepezza generated net sales worth $286.9 million in the third quarter,up from $165.9 million in the prior quarter. In January 2020, the FDA approved Tepezza for the treatment of thyroid eye disease (TED).
Ravicti sales were $64.6 million in the quarter, up 8% year over year.
Third-quarter 2020 net sales inthe Inflammation segment were $101.6 million, down 2.7% year over year.
Adjusted R&D expenses were $27.7 million, up from $19.5 million in the year-ago quarter. Adjusted SG&A expenses were $194.4 million, up from $155.1 million in the year-ago quarter.
Owing to the strong uptake of Tepezza, Horizon Therapeutics significantly raised its full-year sales expectations from Tepezza and correspondingly the net sales guidance.
The company now expects 2020 net sales of $2.12-$2.14 billion, an increase from the previous guidance range of $1.85-$1.90 billion.The company now expects Tepezza’s2020 net sales to bemorethan $800 million compared with the previous guidance of greater than $650 million. The company expects low-double-digit Krystexxa net sales growth.
Other Pipeline Updates
In July 2020, the company announced top-line results from its OPTIC-X open-label clinical study, an extension study of OPTIC, which is the Tepezza phase III pivotal confirmatory study, as well as data from the OPTIC 48-week off-treatment follow-up period. OPTIC-X results demonstrated that 89% of patients who received placebo during OPTIC and then entered OPTIC-X and received Tepezza achieved the primary endpoint of 2 mm or more reduction in proptosis at Week 24.
The results of the OPTIC 48-week off-treatment follow-up period demonstrated that the majority of Tepezza patients who were proptosis responders at Week 24 in OPTIC maintained their response at Week 72, nearly a year off treatment.
Zacks Rank and Other Stocks to Consider
Horizon currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the biotech sector are Emergent BioSolutions Inc. EBS, ADC Therapeutics SA ADCT and Bellus Health, Inc. ACET. While Emergent sportsa Zacks Rank #1, ADC Therapeutics and Bellus Health carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent’s earnings estimates have increased from $5.31 to $6.61 for 2020 and from $6.06 to $8.42 for 2021 over the past 90 days. Shares of the company have increased 68.8% year to date.
ADC Therapeutics’ loss per share estimates have narrowed from $4.37 to $4.32 for 2020 and from $3.19 to $3.08 for 2021 in the past 60 days. Shares of the company have decreased 2.2% year to date.
Bellus’loss per share estimates have narrowed from 71 cents to 62 cents for 2020 and from 88 cents to 79 cents in the past 90 days. Shares of the company have decreased 69.2% year to date.
Horizon Therapeutics Public Limited Company Price, Consensus and EPS Surprise
Horizon Therapeutics Public Limited Company price-consensus-eps-surprise-chart | Horizon Therapeutics Public Limited Company Quote
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