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Why Akebia Therapeutics Stock Is Plunging Today

By Prosper Junior Bakiny - Feb 25, 2021 at 12:47PM

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Investors were not impressed with the drugmaker's latest quarterly update.

What happened?

Shares of Akebia Therapeutics (AKBA 2.53%) are falling sharply on Thursday after the company reported mixed fourth-quarter 2020 financial results. At 12:27 p.m. EST, the biopharmaceutical company's stock was down by 17.4%.

So what

Akebia Therapeutics' total revenue of $56.7 million for its fourth quarter, ending Dec. 31, beat the consensus analyst estimate, which was $51.16 million. The company's top line dropped by about 18.4% year over year due to a decline in its collaboration revenue. On the bottom line, Akebia Therapeutics reported a net loss of $87 million -- $0.60 per share -- compared to the net loss and net loss per share of $94.5 million and $0.79 respectively that it recorded during the fourth quarter of the previous fiscal year. 

Man holding his head in panic staring at a downward pointing graph on a board.

Image source: Getty Images.

On average, analysts expected the company's net loss per share to be $0.40. The bottom-line miss is probably contributing to Akebia Therapeutics' losses on the market today. For the full fiscal year 2020, the company's total revenue declined by roughly 11.8% to $295.3 million, although it came in ahead of the $288.47 million analysts were looking for. Akebia Therapeutics' net loss per share of $2.77 for the year came in well short of the $2.58 average estimate.

Now what

Akebia Therapeutics is gearing up to submit a new drug application to the U.S. Food and Drug Administration for Vadadustat as a treatment for anemia due to chronic kidney disease. The company estimates that Vadadustat could have a $2 billion opportunity in this market in the U.S. If approved, this medicine could become a major cash cow for the healthcare company

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.

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Akebia Therapeutics, Inc. Stock Quote
Akebia Therapeutics, Inc.
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