Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Horizon Pharma, Inc. Is Sailing Into the Sunset

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 Horizon Pharma (NASDAQ: HZNP  ) , a specialty pharmaceuticals company that develops therapies to treat arthritis, pain, and inflammatory diseases, soared as much as 23% after announcing its preliminary fourth-quarter results.

So what: According to Horizon Pharma's preliminary results, the company expects to report total net revenue of $31.9 million to $32.4 million in the fourth quarter as prescriptions for Duexis and Rayos increased by 13% and 18%, respectively, from the sequential third quarter. By comparison, Wall Street estimates had only called for Horizon Pharma to deliver $27.4 million in net revenue for the fourth quarter. Horizon Pharma also provided an update on Vimovo, which it acquired the U.S. rights to from AstraZeneca (NYSE: AZN  ) in November for $35 million. The key point of this update is that Vimovo prescriptions increased 4% in December compared to November, giving investors early signs that this purchase may have been a smart move.

Now what: As you can tell by these results, Horizon Pharma is on the cusp of a major growth period. Normally, growth periods will hit snags every now and then, but with revenue growth of roughly 300% in fiscal 2013, and projections of better than 150% sales growth in 2014, more risk-willing biotech-savvy investors have to be taking notice of Horizon. Furthermore, the Vimovo purchase should be the catalyst that pushes Horizon into profitable territory this year. While the company is pricey on a forward-earnings basis, I've seen no signs that would point to a slowdown in top-line growth or EPS momentum anytime soon. As such, I could see a scenario where Horizon Pharma heads even higher from here.

Horizon Pharma may be soaring today, but even it may struggle to keep pace with this top stock in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2815217, ~/Articles/ArticleHandler.aspx, 9/3/2015 9:08:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,351.38 293.03 0.00%
S&P 500 1,948.86 35.01 0.00%
NASD 4,749.98 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 3:59 PM
HZNP $30.15 Down +0.00 +0.00%
Horizon Pharma, In… CAPS Rating: **
AZN $31.68 Down +0.00 +0.00%
AstraZeneca plc (A… CAPS Rating: ****