Horizon Pharma Rises as Sales Triple, Surpassing Projectionsby
Shares of Horizon Pharma Plc rose to the highest intraday price since September after third-quarter sales of its key drugs beat expectations and the company raised its forecast.
Third-quarter profit excluding one-time items was 70 cents a share, compared with the 41-cent average of analysts’ estimates compiled by Bloomberg. The company generated $226.5 million in sales, more than triple the amount last year. Analysts had projected $193.1 million.
The stock rose as much as 29 percent to $22.24, the highest since Sept. 28.
Duexis, a drug used reduce the risk of ulcers for people being treated for rheumatoid arthritis, brought in $56.9 million in sales, above the average estimate of $46.5 million. Pennsaid 2%, an osteoarthritis drug acquired from Nuvo Research Inc. last year, had sales of $43.9 million, beating estimates of $34.6 million.
Shares of Horizon have tumbled since their high of $38.45 in July amid scrutiny of its use of specialty pharmacies as the debate over drug pricing and distribution intensifies. The company’s hostile bid for fellow drugmaker Depomed Inc. has also met resistance from executives of the target company. Friday’s gains helped the stock recover further from its low point of $13.12 earlier this month.
The pharmaceutical company, which has its tax domicile in Dublin and its operational headquarters in Deerfield, Illinois, also raised its 2015 sales forecast to a range of $750 million to $760 million, up from the Aug. 7 projection of $660 million to $680 million.