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Radius (RDUS) Q2 Loss Narrower Than Expected, Revenues Lag

·3 min read

Radius Health, Inc. RDUS incurred a loss of 35 cents per share in the second quarter, narrower than the Zacks Consensus Estimate of a loss of 39 cents and the year-ago quarter’s loss of 95 cents due to higher revenues.

The company reported revenues of $52 million, which missed the Zacks Consensus Estimate of $59 million but increased from the year-ago quarter’s $50 million. Revenues came from the sale of the lead drug, Tymlos, which is approved for the treatment of postmenopausal women with osteoporosis at high risk of fracture.

Shares of the company have lost 22.6% in the year so far compared with the industry’s decline of 10.1%.

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Quarter in Detail

The year-over-year new patient growth for Tymlos was 40%.

Research & development expenses in the reported quarter were $26.9 million, down from $44.9 million in the year-ago quarter, driven by a decrease in abaloparatide-TD program cost. Selling, general & administrative expenses decreased 16% to $32.1 million.

Pipeline Updates

Radius is evaluating Tymlos in additional indications — a study in men with osteoporosis and a bone histomorphometry study evaluating the early effects of the drug on tissue-based indices of formation in postmenopausal women.

The phase III, ATOM, study is a randomized, double-blind, placebo-controlled study to assess efficacy and safety of abaloparatide injection in 228 men with osteoporosis.

It is also developing an abaloparatide transdermal system, for potential use in the treatment of postmenopausal women with osteoporosis. The wearABLe study is a pivotal, randomized, open label, active-controlled, bone mineral density (“BMD”) non-inferiority bridging study that will evaluate the efficacy and safety of abaloparatide transdermal system versus Tymlos (abaloparatide) injection in approximately 500 patients with postmenopausal osteoporosis at high risk for fracture.

Earlier, Radius entered an exclusive global license agreement with Menarini Group for the development and commercialization of elacestrant. Per the agreement, Menarini Group will be responsible for the worldwide commercialization of elacestrant, after the completion of the phase III study. The EMERALD study is evaluating the use of elacestrant to treat ER+/HER2- advanced or metastatic breast cancer and the data are expected in the second half of the year.

Radius plans to initiate a seamless phase II/III pivotal study on RAD011 for patients with Prader-Willi Syndrome (PWS) in the fourth quarter or early first quarter.

Guidance Update

As a reflection of the timing of new patient adds, the company is lowering its annual guidance for Tymlos net revenues by $10 million. Tymlos revenues are now expected around $240 million, down from $250 million projected earlier.

Radius Health, Inc. Price, Consensus and EPS Surprise

Radius Health, Inc. Price, Consensus and EPS Surprise
Radius Health, Inc. Price, Consensus and EPS Surprise

Radius Health, Inc. price-consensus-eps-surprise-chart | Radius Health, Inc. Quote

Our Take

Radius reported a narrower loss in the second quarter but sales lagged estimates. The pipeline progress has been impressive as well. However, competition is stiff for Tymlos from Eli Lilly & Co's LLY Forteo and Amgen's AMGN Prolia.

Zacks Rank & A Stock to Consider

Radius currently carries a Zacks Rank #4 (Sell).

A better-ranked stock in the healthcare sector is Repligen Corporation RGEN, which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings estimates for Repligen have moved up 43 cents for 2021 in the past 60 days. The stock is up 32.9% year to date.

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Eli Lilly and Company (LLY) : Free Stock Analysis Report

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Radius Health, Inc. (RDUS) : Free Stock Analysis Report

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