Please ensure Javascript is enabled for purposes of website accessibility

Why Horizon Therapeutics Stock Jumped Today

By Prosper Junior Bakiny - Feb 24, 2021 at 5:00PM

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

The biopharmaceutical company released its latest quarterly update.

What happened?

Shares of Horizon Therapeutics (HZNP 3.72%) were trading higher on Wednesday following the company's announcement of its fourth-quarter and full-year 2020 financial results. Horizon Therapeutics' stock closed the day's trading session up by 13.3%.

So what

During its fourth-quarter that ended on Dec. 31, Horizon Therapeutics recorded net sales of $745.3 million, representing a 105% increase compared to the prior-year quarter. The company's net sales also came in higher than the $693.54 million analysts had predicted. Horizon Therapeutics' top-line growth was driven by the launch of Tepezza, the first treatment for thyroid eye disease (TED) approved by the U.S. Food and Drug Administration (FDA). The FDA granted Tepezza regulatory approval in January 2020. During Q4, Horizon Therapeutics reported net sales of $343.7 million from Tepezza.

Rolled up dollar bills stacked in a ladder pattern.

Image source: Getty Images.

On the bottom line, the healthcare company posted an adjusted net income of $298.5 million, or $1.28 on a per-share basis, compared to an adjusted net income and adjusted earnings per share (EPS) of $116.6 million and $0.56, respectively, during Q4 of the fiscal year 2019. The consensus analyst estimates for the company's Q4 adjusted EPS was $1.06. Horizon Therapeutics' full-year revenue was $2.2 billion, a 69% year-over-year increase. Its adjusted EPS for 2020 was $3.88, which doubled, compared to the fiscal year 2019.

Now what

Horizon Therapeutics also released its guidance for 2021. The company expects net sales between $2.70 billion and $2.80 billion, which compares favorably to the average analyst estimate of $2.68 billion. Horizon Therapeutics' future looks bright thanks to Tepezza, not to mention its recently announced acquisition of biotech company Viela Bio, which significantly expands Horizon's pipeline. Given all these factors, Horizon Therapeutics is definitely a stock worth considering. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Horizon Therapeutics Public Limited Company Stock Quote
Horizon Therapeutics Public Limited Company
$93.96 (3.72%) $3.37
Viela Bio, Inc. Stock Quote
Viela Bio, Inc.

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

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