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Today’s Research Reports on Stocks to Watch: Perrigo Company and Novelion Therapeutics

NEW YORK, NY / ACCESSWIRE / November 9, 2018 / While shares of healthcare company Perrigo Company were tanking after reporting third quarter financial results, Novelion Therapeutics, which is developing a portfolio of therapies for individuals living with rare diseases, saw its shares explode after announcing positive news.

RDI Initiates Coverage on:

Perrigo Company plc

Novelion Therapeutics Inc.

Perrigo Company plc shares closed down 16.32% yesterday on roughly 7.8 million shares. The stock hit a new low of $62.86 after reporting third quarter financial results. The Company’s adjusted earnings were down 21.9% yoy to $1.09 per share. It was however higher than the street’s expectation of $1.05 per share. Net Sales of $1.13 billion for the quarter was not only a drop of 8% yoy but was also missed street’s expectation of $1.17 billion. CFO Ronald Winowiecki said on the earnings call, "Even though our total adjusted EPS results were above our expectations, the quarter benefited from a one-time tax savings of approximately $0.06 per share. In total, our consumer businesses adjusted operating income was in line with our expectations. However, the Rx segment continued to underperform. The key driver behind the lower 2018 guidance provided today is due primarily to Rx as we continue to experience weakness within this business and anticipate lower new product sales for this segment." Looking ahead, the company lowered its full-year guidance and is now expecting earnings per share in the range of $4.45 and $4.65. Previously the company had expected a range of $4.75 to $4.95. Revenue is now expected to be $4.72 billion while previously the company expected a range of $4.8 to $4.9 billion. Leerink analyst Ami Fada reiterated a "market perform" rating on the stock and said, "once again the top line continues to be weak and 2018 guidance was lowered primarily due to the prescription segment.”

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Novelion Therapeutics Inc. shares were on fire on Thursday, closing the day up 77.23% on colossal trading volume compared to usual. The stock traded around 40 million shares compared to an average trading volume of roughly 423,000 shares. Shares continued to see even more gains in after-hours trading of nearly 13% after the biopharmaceutical company said its subsidiary, Aegerion Pharmaceuticals, Inc., after soliciting third party lenders, has entered into a new secured financing facility with certain funds managed by Athyrium Capital Management (Athyrium) and Highbridge Capital Management, LLC. Jeff Hackman, Interim CEO stated, “The operational improvement and cost reduction initiatives that we executed throughout 2018 have made an impact on the stability of our business, and position Aegerion to become cash flow positive by the second quarter of 2019. This financing, which was sized to provide adequate runway to bridge to cash generation at the Aegerion level, also sets us on a path to a more comprehensive capital restructuring - our primary near-term goal. We are encouraged by an ongoing productive dialogue with Aegerion’s convertible debtholders to help us meet this goal, and are pleased that some of our largest bondholders showed further support for the Company by providing us with this new capital. As always, we will strive to continue to serve our patients and ensure that our important therapies continue to be made available to those in need.” Hondo Sen, a Partner at Athyrium, commented, “We believe that with a portfolio of important rare disease therapies there is a fundamental business opportunity to pursue.”

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Our Actionable Research on Perrigo Company plc (NYSE: PRGO) and Novelion Therapeutics Inc. (NASDAQ: NVLN ) can be downloaded free of charge at Research Driven Investing.

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