NPSP's Loss Narrows, Shares Down on Weak Forecast - Analyst Blog


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NPS Pharma 's ( NPSP ) third quarter 2013 loss of a cent per share was narrower than the Zacks Consensus Estimate of a loss of 2 cents. The company reported a loss of 4 cents per share.

Revenues in the third quarter of 2013 climbed 45% to $39 million. The increase was primarily due to the contribution from Gattex, which was absent a year ago. Revenues narrowly beat the Zacks Consensus Estimate of $38 million.

NPS Pharma launched Gattex, its sole marketed product, in the U.S. 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, dependent on parenteral support. The drug was cleared in the EU in 2012 (European trade name: Revestive).

Gattex sales in the reported quarter were $11 million. Royalty revenues in the quarter stood at $28.1 million. The company stated that as of Nov 1 235 patients were undergoing Gattex therapy and 452 prescriptions were received.

Research and development expenses increased marginally to $18.8 million in the third quarter of 2013. General and administrative expenses jumped to $17.6 million in the third quarter of 2013 from $8.3 million a year ago. The massive increase was due to costs pertaining to Gattex's U.S. launch.

NPS Pharma is also developing Natpara (rhPTH [1-84]) for the treatment of adult hypoparathyroidism. The company submitted a Biologic License Application to the FDA for the drug last month.

Gattex/ Revestive Sales Forecast Disappoints

NPS Pharma made a modest increase in its 2013 sales forecast for Gattex/ Revestive. The company now expects 2013 sales of the drug in the range of $28 - $32 million (old guidance: $25-$30 million). The modest increase in guidance failed to please investors. Consequently, shares of the company fell approximately 15% following the news.

NPS Pharma carries a Zacks Rank #2 (Buy). Companies such as Actelion Ltd. ( ALIOF ), AMAG Pharmaceuticals, Inc . ( AMAG ) and Pharmacyclics Inc. ( PCYC ) currently look more attractive. All 3 stocks carry a Zacks Rank #1 (Strong Buy).


AMAG PHARMA INC (AMAG): Free Stock Analysis Report

NPS PHARMA INC (NPSP): Free Stock Analysis Report

PHARMACYCLICS (PCYC): 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 Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: ALIOF , AMAG , NPSP , PCYC

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