Horizon (HZNP) Third Quarter Earnings & Revenue Beat Estimates – Nov 3, 2022

Horizon (HZNP) Third Quarter Earnings & Revenue Beat Estimates – Nov 3, 2022

Horizon Therapeutics plc (HZNP Free Report) reported 2022 Third Quarter Adjusted Earnings of $1.25 per share, which beat the Zacks Consensus Estimate of $1.00. The company reported adjusted earnings of $1.74 per share in the prior year quarter.

Quarterly revenue of $925.4 million decreased 11% year over year, due to lower sales in the Inflammation segment and lower sales growth of Tepezza, which is approved for the treatment of thyroid eye disease (“TED”). . Reveneus beat the Zacks consensus estimate of $889 million.

Horizon shares rose 11.3%, due to better-than-expected earnings results. The stock is down 34.7% year to date compared to the industrydecrease of 21.2%.

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quarter in detail

Horizon reports financial results in two segments, orphans and inflammation.

Sales in the orphan segment were $904.7 million, down 5% from the prior year figure, primarily due to lower sales growth at Tepezza. Other drugs like Krystexxa, Uplizna, Ravicti, Actimmune and Procysbi continued the momentum. The segment represented almost 98% of total net sales for the third quarter.

Krystexxa sales increased 21% year over year to $191.6 million. Tepezza generated net sales of $490.9 million in the third quarter, which were down 20% year over year.

Ravicti’s sales were $84.3 million in the quarter, up 10% year over year.

Procysbi sales were $57.8 million in the quarter, up 17% from the prior year.

Uplizna’s sales were $43.8 million in the quarter, up 134% year over year.

Actimmune sales were $34.4 million in the quarter, up 15% from a year earlier.

Meanwhile, net sales in the Inflammation segment were $20.7 million, down 76% from the prior year.

Adjusted research and development expenses were $108.4 million, compared to $74.3 million in the prior year quarter. Adjusted selling, general and administrative expenses were $342.8 million, compared to $301.1 million in the prior year quarter.

The company had cash, cash equivalents and investments worth $2.13 billion as of September 30, 2022 compared to $1.89 billion as of June 30, 2022.

Orientation 2022

Horizon increased its full-year 2022 net sales guidance.

The company now expects net sales in the range of $3.59-$3.61 billion compared to the previous expectation of $3.53-$3.60 billion for 2022. The Zacks Consensus Estimate for the metric is pegged at $3.57 billion. .

The company continues to expect Tepezza net sales percentage growth in high teens by 2022.

recent updates

In September 2022, HZNP completed enrollment in the Phase IV study evaluating Tepezza for the treatment of TED in adult patients with a low/chronic clinical activity score. Top-line data from it is expected in the second quarter of 2023.

At the same time, Horizon Announced that the phase II study evaluating its developmental candidate, dazodalibep, for the treatment of Sj√∂gren’s syndrome, has achieved the primary endpoint in patients with moderate to high systemic disease activity.

Horizon has entered into a collaboration agreement with private biotech, Q32 Bio Inc., to develop the latter’s pipeline candidate, ADX-914, for the treatment of autoimmune diseases. Last month, the company dosed the first patient in a phase II study evaluating ADX-914 to treat moderate to severe atopic dermatitis.

Zacks Rank and Actions to Consider

Horizon currently has a Zacks rank #3 (hold). Some top-ranked stocks in the biotech sector are Akero Therapeutics, Inc. (Akro free report), Amarin Corporation plc (AMRN free report) and Atea Pharmaceuticals, Inc. (AVIR Free Report), all sporting a Zacks Rank #2 (Buy) today. You can see Full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Loss per share estimates for Akero Therapeutics were reduced by 6.9% for 2022 and 4.8% for 2023 in the last 60 days.

Akero Therapeutics’ profit beat estimates in three of the last four quarters and missed the other time. AKRO delivered an earnings surprise of 7.66% on average.

Loss per share estimates for Amarin have been lowered 21% for 2022 and 50% for 2023 in the last 60 days.

Amarin’s earnings beat estimates in two of the last four quarters and missed the other two times. AMRN delivered a negative earnings surprise of 14.29% on average.

Loss per share estimates for Atea Pharmaceuticals were lowered 10.9% for 2022 and 9.5% for 2023 in the last 60 days.

Atea Pharmaceuticals’ profit beat estimates in three of the last four quarters and missed them the other time. AVIR delivered a negative earnings surprise of 58.74% on average.

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