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Why Hyperion Therapeutics Inc. Shares Roared Higher

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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 (UNKNOWN: HPTX.DL  ) , 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 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!

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Related Tickers

12/31/1969 7:00 PM
HPTX.DL $0.00 Down +0.00 +0.00%
Hyperion Therapeut… CAPS Rating: **