NPS Pharma Reports Loss but Gattex Encourages - Analyst Blog


NPS Pharmaceuticals, Inc. 's ( NPSP ) second quarter 2013 net loss (excluding special items) of 6 cents per share was narrower than the Zacks Consensus Estimate of a loss of 7 cents. The company reported a profit of 8 cents in the year-ago quarter.  We note that NPS Pharma's year-ago results were positively impacted by the inclusion of $25 million received from Amgen Inc. ( AMGN ) related to the amended royalty agreement on Sensipar/Mimpara- a calcium-sensing receptor agonist.

Revenues in the second quarter of 2013 came in at $36.5 million as against $53.5 million recorded a year ago. Revenues in the second quarter of 2012 were boosted by the receipt of the $25 million payment referred to above. Revenues were above the Zacks Consensus Estimate of $31 million.

Most of the revenues in the second quarter of 2013 came from royalties. The positive aspect for NPS Pharma in the second quarter of 2013 was the encouraging performance of Gattex (U.S. trade name). Sales of the drug in its first full quarter were $4.8 million. The impressive sales of Gattex had a positive impact on the company's shares.

NPS Pharma launched Gattex in Feb 2013, following approval by the U.S. Food and Drug Administration (FDA) in Dec 2012. The drug was cleared for treating adults with short bowel syndrome (SBS), dependent on parenteral support. NPS Pharma stated in its press release that as of Aug 2, 2013, 141 SBS patients were treated with Gattex.

Moreover, 318 Gattex prescriptions were received until that date. The company expects 2013 global sales of Gattex/Revestive (ex-U.S. trade name) in the range of $25- $30 million. The company expects 275-325 patients to be under the treatment of its SBS therapy by Dec 31, 2013.  

The company expects to launch the drug in the EU in the first half of 2014. NPS Pharma expects to record meaningful international revenues from the drug from the latter half of 2014. NPS Pharma expects peak sales of the drug to be higher in international markets than in the U.S.

On a reported basis, operating expenses climbed to $45.8 million in the second quarter of 2013 from $42.3 million recorded a year ago. In the second quarter of 2013, general and administrative expenses climbed 49.5% to $14.5 million. Costs pertaining to the launch of Gattex in the U.S. were responsible for the huge increase.

NPS Pharma is also developing Natpara (rhPTH [1-84]) for the treatment of adult hypoparathyroidism. The company expects to submit a Biologic License Application to the FDA for the drug by year-end. NPS Pharma expects the drug to be approved in the U.S. before 2014 ends.

NPS Pharma expects total operating expenses for 2013, excluding share-based compensation expenses and cost of goods sold, in the range $140 -$150 million.

NPS Pharma carries a Zacks Rank #3 (Hold). Companies such as Pharmacyclics Inc. ( PCYC ) and Questcor Pharmaceuticals Inc. ( QCOR ) appear to be better placed with a Zacks Rank #1 (Strong Buy).

AMGEN INC (AMGN): Free Stock Analysis Report

NPS PHARMA INC (NPSP): Free Stock Analysis Report

PHARMACYCLICS (PCYC): Free Stock Analysis Report

QUESTCOR PHARMA (QCOR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AMGN , NPSP , PCYC , QCOR , SBS

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