Please ensure Javascript is enabled for purposes of website accessibility

Why Horizon Therapeutics Stock Is Up Today

By Prosper Junior Bakiny – Aug 5, 2020 at 12:26PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were pleased with the company’s latest quarterly update.

What happened?

Shares of Horizon Therapeutics (HZNP 0.10%) are up by 17% as of 11:54 a.m. EDT on Wednesday, after the company reported better-than-expected second-quarter financial results before the market opened today. 

So what

During the second quarter, Horizon Therapeutics' net sales soared by 44% year over year to $462.8 million. The company's top line also came in well ahead of the $332.45 million analysts were expecting. The recent commercial launch of Tepezza, a treatment for thyroid eye disease (TED) approved by the U.S. Food and Drug Administration (FDA) in January, was one of the main reasons behind Horizons Therapeutics' strong sales growth during the quarter.

Five upward-pointing arrows on a blackboard

Image source: Getty Images.

Also, the company recorded a net loss of $80 million, or $0.42 on a per-share basis, compared with a net loss of $5.1 million and a net loss per share of $0.03 it recorded during the prior-year quarter. However, the company's non-GAAP (adjusted) earnings per share came in at $0.40. And while that was a roughly 18% year-over-year decrease, it came in ahead of the $0.36 analysts anticipated.

Now what

Perhaps what investors liked the most about Horizon Therapeutics' quarterly update was its updated full-year guidance. The company had previously said that it expected its net sales for fiscal year 2020 to come in above $200 million. Now the biotech expects its full-year net sales to be greater than $650 million.

Further, Horizon Therapeutics increased its projected peak annual net sales for Tepezza to greater than $3 billion, up from $1 billion. This drug is the first and only FDA-approved treatment for TED, and it will continue to be a key growth driver for the healthcare company. Given this factor, Horizon Therapeutics' gains on the stock market today may just be the beginning.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Horizon Therapeutics Public Stock Quote
Horizon Therapeutics Public
HZNP
$97.01 (0.10%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.