Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Hyperion Therapeutics (NASDAQ: HPTX ) , a biopharmaceutical company focused on developing therapies to treat orphan diseases and hepatology-based disorders, jumped as much as 16% after third-quarter earnings results were reported.
So what: For the quarter, Hyperion delivered revenue of $15.5 million, compared to no revenue in the year-ago period when it was merely a clinical-stage company. Ravicti, its recently approved drug to manage select types of urea cycle disorders, saw a 58% revenue jump over the sequential second quarter, to $9.8 million. Despite just recently launching Ravicti, Hyperion was able to report an adjusted profit of $0.15 per share for the quarter, light years ahead of Wall Street's expectations for a slight loss and big reversal from last year's $0.41 per-share adjusted loss.
Now what: My big concern with Hyperion was how well it would do in launching Ravicti. That question appears to have been answered with this report -- the drug's sales growth looks strong. That doesn't exactly make Hyperion a buy in my book just yet, as the company is already valued at five times most peak sales estimates on the Street for Ravicti ($100 million). But the sell-side case also took a major blow with this earnings report. It looks as if we may have a stalemate here for a while.
A growth stock with plenty left in the tank
Hyperion's Ravicti is certainly demonstrating some impressive potential -- but so is this incredible tech stock, which is growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. Watch our jaw-dropping investor alert video today to find out why The Motley Fool's chief technology officer is putting $117,238 of his own money on the table, and why he's so confident this company will be a huge winner in 2013 and beyond. Just click here to watch!