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What happened
Horizon Pharma (HZNP +0.00%) is up 13.7% at 2:43 p.m. EST, after announcing solid third-quarter earnings today.
So what
Sales were up 21% year over year when excluding a previously announced $65 million payment to Express Scripts (ESRX +0.00%) that was recorded as a one-time reduction in sales. Much of the year-over-year increase came from Horizon's gout treatment Krystexxa, which didn't have any sales in the year-ago quarter, since Horizon bought the drug within the last year through its acquisition of Crealta Pharmaceuticals. Pennsaid, which treats pain associated with osteoarthritis of the knee, also saw a nice 83% year-over-year increase. And Ravicti, an orphan drug for urea-cycle disorders, also helped bring up the average sales growth, with a 26% increase compared to the year-ago quarter.
At the bottom of the profit-loss statement, Horizon Pharma earned $0.70 per share on an adjusted basis compared to $0.42 per share in the third quarter of 2015, a 67% year-over-year increase.
Now what
Management confirmed its 2016 sales guidance of $980 million to $985 million, which includes the payment to Express Scripts and the acquisition of Raptor Pharmaceutical, which closed last month. The two months of revenue from Raptor's orphan drugs -- Procysbi and Quinsair -- should add about $20 million to $25 million to Horizon's revenue this year.
For Horizon to keep the momentum going, management will have to continue to make acquisitions, but with six acquisitions over the last three years, finding deals doesn't seem to be a problem for Horizon Pharma.
