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Horizon Therapeutics Delivers Upbeat Results in Q4; Shares Up 6.5%

Horizon Therapeutics (NASDAQ: HZNP) shares jumped 6.5% on March 1, after the biopharmaceutical company delivered stronger-than-expected fourth-quarter results. HZNP also provided its FY2022 revenues guidance above analysts’ expectations.

Horizon Therapeutics plc is a biopharmaceutical company engaged in the research, development, and marketing of medicines that address the critical needs of people impacted by rare and rheumatic diseases.

Q4 Beat

Notably, adjusted earnings of $1.41 per share grew 21% year-over-year and beat analysts’ expectations of $1.35 per share. The company reported earnings of $1.17 per share for the prior-year period.

Further, revenues jumped 36% year-over-year to $1.01 billion and exceeded consensus estimates of $995.87 million. The increase in revenues reflected a surge in net sales of TEPEZZA, which increased 72% to $ 589.6 million, coupled with a 32% growth in KRYSTEXXA (pegloticase injection) net sales to $170.3 million.

FY2022 Outlook

Based on robust Q4 results, management provided financial guidance for FY2022.

The company forecast revenues to grow 22% year-over-year and fall in the range of $3.9 billion to $4 billion, ahead of the consensus estimate of $3.91 billion. TEPEZZA FY2022 net sales are expected to grow in the mid-30s, while KRYSTEXXA full-year 2022 net sales growth is projected to cross 20%.

Further, the company forecasts adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $1.63 billion to $1.70 billion, implying 30% growth, and a margin expansion of 230 basis points.

CEO Comments

Looking ahead, Horizon CEO, Tim Walbert, commented, “I am very proud of what we have accomplished, but I am most excited about the potential for continued growth going forward as we leverage the strong foundation we have built over the past several years.”

He further added, “We expect another year of strong double-digit net sales and adjusted EBITDA growth in 2022, as well as meaningful margin expansion, as we continue to execute commercially and build on our momentum in R&D to develop new approaches for patients with rare, autoimmune and severe inflammatory diseases.”

Wall Street’s Take

Following robust Q4 results, Goldman Sachs analyst Madhu Kumar increased the price target on Horizon Therapeutics to $169 (74.1% upside potential) from $153, and reiterated a Buy rating.

Consensus among analysts is a Strong Buy based on 6 unanimous Buys. The average Horizon Therapeutics stock forecast of $144 implies 48.35% upside potential to current levels.

Bloggers Weigh In

TipRanks data shows that financial blogger opinions are 100% Bullish on HZNP stock, compared to a sector average of 69%.

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