NPS Pharmaceuticals, Inc.
) 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
) 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
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
Questcor Pharmaceuticals Inc.
) appear to be better placed with a Zacks Rank #1 (Strong
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