Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Myovant Sciences Stock Is Falling Today

By Cory Renauer – Jul 28, 2021 at 2:47PM

Key Points

  • Fiscal first-quarter sales of prostate cancer drug Orgovyx came in at just $10.5 million.
  • Despite help from Pfizer, initial sales of Myfembree reached just $1.1 million.

Motley Fool Issues Rare “All In” Buy Alert

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

Second-quarter earnings results were a little bit disappointing.

What happened

Myovant Sciences (MYOV -0.26%) stock is losing ground after the company reported earnings for its fiscal first quarter, the three-month period ended June 30, 2021. Investors upset about net product sales that weren't very impressive led the stock 12.5% lower this morning. The stock recovered some losses and was down just 9.1% as of  2:17 p.m. EDT on Wednesday.

So what 

Sales of products containing Myovant's gonadotropin-releasing hormone (GnRH) receptor antagonist, Orgovyx (relugolix), weren't as impressive as investors were expecting. Second-quarter sales of Orgovyx, the prostate cancer treatment the FDA approved last year, reached just $10.5 million.

Pharmaceutical sales representative speaking with a doctor.

Image source: Getty Images.

Investors have been watching the Orgovyx launch closely since it earned FDA approval to treat advanced prostate cancer patients last December. That's because last September, the company told investors its drug didn't significantly extend castration resistance-free survival compared to standard care.

Myovant also reported disappointing sales of more recently launched Myfembree. In May, the FDA approved this combination of relugolix, estrogen, and progesterone for the treatment of heavy menstrual bleeding associated with uterine fibroids.

As the first available treatment for this indication, investors expected more than just $1.1 million in top-line sales because the company has a big helping hand. Myovant is commercializing Myfembree jointly with Pfizer (PFE 0.74%), one of America's largest pharmaceutical companies.

Now what

The first approved treatments for conditions that affect millions of people usually go on to generate blockbuster drug sales. Unfortunately for Myovant, women's health is an unusually frustrating corner of the overall pharmaceutical industry.

Back in 2018, AbbVie (ABBV 0.14%) launched its own oral GnRH inhibitor called Orilissa to relieve pain associated with endometriosis. Even though endometriosis affects at least 6% of adult women in the U.S., sales of Orilissa remained flat in the second quarter of 2021 at just $30 million.

AbbVie's challenges with its GnRH inhibitor don't necessarily need to carry over to Myovant and Pfizer's launch of Myfembree. That said, it's probably best to avoid this stock until Myovant shows us relugolix can buck the trend.

Cory Renauer 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.

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

Myovant Sciences Ltd. Stock Quote
Myovant Sciences Ltd.
MYOV
$26.78 (-0.26%) $0.07
Pfizer Stock Quote
Pfizer
PFE
$49.21 (0.74%) $0.36
AbbVie Stock Quote
AbbVie
ABBV
$159.62 (0.14%) $0.23

*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 analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

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.