Horizon Pharma Impresses With Q3 Earnings
Horizon Pharma PLC (NASDAQ: HZNP) reported its third-quarter financial results on Monday before the markets opened. The company said that it had $0.70 in earnings per share (EPS) and $208.7 million in revenue. There are consensus estimates from Thomson Reuters that called for $0.63 in EPS and $270.04 million in revenue. The same period from last year had $0.42 in EPS and $226.54 million in revenue.
On October 25, the company completed the acquisition of Raptor Pharmaceutical, which was a significant step in advancing the company’s strategy to expand its rare disease business with the addition of two orphan medicines, Procysbi (cysteamine bitartrate) delayed-release capsules and Quinsair (aerosolized form of levofloxacin).
Following the acquisition, over half of the company’s medicines now treat patients with rare diseases.
In terms of guidance for the full year, the company expects net sales in the range of $1.045 billion to $1.05 billion and adjusted EBITDA in the range of $450 million to $460 million. The consensus estimates are calling for $1.98 in EPS and $1.03 billion in revenue for 2016.
Operating cash flow was $133.8 million in the third quarter of 2016. On the books, cash and cash equivalents totaled $549.3 million at the end of the quarter, versus $424.5 million at the end of the June quarter of 2016.
Timothy P. Walbert, Chairman, President and CEO of Horizon Pharma, commented:
We delivered strong results in the third quarter as we continued to execute on our long-term strategy of building a more-diversified, sustainable biopharmaceutical company anchored by a growing mix of orphan medicines. We have made several strategic decisions this year to put Horizon Pharma on a strong path forward, including securing formulary status with two major PBMs for our primary care medicines and completing two significant acquisitions in rare diseases.
Shares of Horizon Pharma were last trading up 14% at $17.17, with a consensus analyst price target of $30.36 and a 52-week trading range of $13.05 to $23.70.