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Radius' (RDUS) Q3 Loss Matches Estimates, Revenues Miss

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Zacks Equity Research
·3 min read
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Shares of Radius Health, Inc. RDUS were down 4.77% after it reported disappointing results for the third quarter, wherein loss was in line but sales missed estimates.

Shares of the company have lost 32.6% in the year so far compared with the industry’s decline of 5.1%.

 

The company incurred a loss of 14 cents per share in the third quarter, in line with the Zacks Consensus Estimate. The figure was, however, narrower than the year-ago quarter’s loss of 65 cents per share due to higher revenues.

The company reported revenues of $77.8 million, missing the Zacks Consensus Estimate of $82 million. Nevertheless, the figure increased from the year-ago quarter’s $46.7 million owing to continued growth in demand for lead drug, Tymlos, which is approved for the treatment of postmenopausal women with osteoporosis at high risk of fracture. 

Quarter in Detail

Net sales of Tymlos were $50.4 million, an 8% year-over-year increase.

Research & development expenses for the reported quarter were $39.5 million, up from $31.8 million year over year, primarily due to an increase in abaloparatide transdermal system program costs. Selling, general & administrative expenses decreased 5% to $33.7 million.

Pipeline Updates

The wearABLe study, evaluating the effects of abaloparatide delivered via a novel transdermal system on bone mineral density, completed the final recruitment of 511 patients. Enrollment in the phase III study, ATOM, which is assessing the efficacy and safety of abaloparatide-SC in men with osteoporosis, completed enrollment.

In July, Radius entered into an exclusive global license agreement with Menarini Group for the development and commercialization of elacestrant. Per the agreement, Menarini Group will be responsible for worldwide commercialization of elacestrant, after the completion of the phase III study. The EMERALD study, evaluating the use of elacestrant to treat ER+/HER2- advanced or metastatic breast cancer, completed the final recruitment of 478 patients.

Our Take

Radius reported an in-line loss in the third quarter but sales fell short of estimates. Tymlos is holding up pretty well amid the pandemic. The pipeline progress has been impressive as well. However, competition is stiff from bigwigs like Eli Lilly & Co's LLY Forteo and Amgen's AMGN Prolia.

Zacks Rank & A Stock to Consider

Radius currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the healthcare sector is Zoetis, Inc. ZTS, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zoetis’ earnings estimates have increased 6 cents for 2020 and 4 cents for 2021 in the past 30 days.

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Eli Lilly and Company (LLY) : Free Stock Analysis Report
 
Amgen Inc. (AMGN) : Free Stock Analysis Report
 
Zoetis Inc. (ZTS) : Free Stock Analysis Report
 
Radius Health, Inc. (RDUS) : Free Stock Analysis Report
 
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