Shares of Horizon Therapeutics (NASDAQ:HZNP) 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.
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.
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.
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.