In response to reporting third-quarter results, Radius Health (NASDAQ:RDUS), a commercial-stage biotech focused on osteoporosis and cancer, saw its shares jump 10% as of 3:10 p.m. EDT on Thursday.
Here's a look at the headline numbers from the period:
- Revenue jumped 22% sequentially to $27.6 million thanks to strong sales growth in Tymlos, which is the company's approved treatment for osteoporosis. By contrast, Wall Street was only expecting $25.5 million in revenue, so this was a solid beat.
- Net loss was $49.8 million, or $1.09 per share. On an adjusted basis, net loss was $0.85 per share. That was far lower than the $1.27 loss that market watchers were expecting.
Moving on to the guidance, here's what management expects in the near future:
- In 2018, revenue for Tymlos in the U.S. is forecast to land between $95 million and $98 million. The year-end cash balance is expected to exceed $220 million. For context, Wall Street is currently projecting $94.7 million in full-year revenue.
- In 2019, Tymlos U.S. net revenue is projected to land between $155 million and $175 million. The cash balance at the end of the year is expected to exceed $100 million. This midpoint of this range is roughly in line with expectations.
When combining the better-than-expected results with the fact that Radius Health's stock had fallen more than 40% since the start of the year, it isn't hard to figure out why traders are cheering today.
Radius also had a number of nonfinancial updates to share with investors:
- The Food and Drug Administration recently approved a label expansion claim for Tymlos.
- Starting in 2019, Tymlos will be covered by approximately 274 million U.S. insured lives.
- A phase 3 study for elacestrant -- an exciting compound that is designed to treat breast cancer -- will kick off before the end of the year.
In total, Radius Health provided investors with numerous reasons to be optimistic today, so it's great to see shareholders finally have a great day.