Horizon Pharma (HZNP) stock toppled to a month-low Monday despite "nothing alarming" in its Q4 report, though sales of Ravicti were "unexpectedly disappointing" and 2017 sales guidance lagged, said Mizuho analyst Irina Koffler.
Meanwhile, a number of biotech stocks shot up at least 7% in the stock market today — Bluebird Bio (BLUE), Cara Therapeutics (CARA) and Ligand Pharmaceuticals (LGND).
Horizon stock, though, fell 5.6% to 16.48, after earlier falling as much as 7.4%. Shares are now trading below their 50-day moving average and have spent two months below their 200-day average.
For Q4, Horizon reported $310.35 million in sales, up 27% vs. the year-earlier quarter and narrowly topping views for $309.6 million. Earnings per share minus items were flat at 64 cents, but crushed the 51-cent consensus model.
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Brand performance in Q4 was mixed, Koffler wrote. Duexis sales fell 15.7% year over year to $46.2 million but beat expectations. Vimovo sales lagged at $31.6 million vs. analysts' model for $33.1 million, and were down 32.8%. Pennsaid 2% solution sales, on the other hand, beat by $11 million at $96.6 million, rising 74.4%.
"The company appears to have stabilized its average net realized price for Duexis, Vimovo, Pennsaid 2% and Rayos in 2016, declining to $496 in Q4 2016 from $504 in Q4 2015," Koffler wrote. "It is not yet clear how ANRP will evolve under the new (pharmacy benefit manager) contracting model."
Orphan business was also weak, with Actimmune sales coming in at $24.2 million, missing views for $25.8 million and dipping 13.9% vs. last year, Koffler wrote. Actimmune is being tested with Bristol-Myers Squibb's (BMY) Opdivo in kidney and bladder cancer.
Ravicti sales of $32.9 million were well below expectations for $44.2 million, but only fell 4.6% on a year-over-year basis.
Guidance for 2017 sales of $1.24 billion to $1.29 billion bracketed the consensus for $1.28 billion, but was short at the midpoint. Sales would be up 20.5% at the midpoint of guidance.
Koffler kept her 25 price target and buy rating on Horizon stock.
As for Bluebird, the stock rose 7.1% to 87.85, hitting a 14-month high and still in a buy zone after breaking out of a cup-with-handle base at 78.90 on Feb. 14. Cara stock is extended from its Jan. 25 breakout at 12.84. Its shares hit a 13-month high of 17.20 on Feb. 1 and jumped 7.9% Monday, to 16.21. Ligand retook its 50-day moving average, a key support line, rising 7% to 107.38.
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