) reported fourth quarter 2012 earnings of 8 cents per share,
well above the year-ago earnings of 3 cents per share and the
Zacks Consensus Estimate of 1 cent per share.
Quarterly revenues increased 65% to $70.2 million, well above
the Zacks Consensus Estimate of $62 million, with performance
being driven by Glumetza and Zegerid.
Full-year earnings came in at 27 cents per share, well above
the year-ago earnings of 7 cents per share and the Zacks
Consensus Estimate of 20 cents per share. Full-year revenues
increased 83.5% to $218 million, above the Zacks Consensus
Estimate of $210 million.
Quarter in Detail
During the quarter, Glumetza revenues increased 49.5% to $42.6
million. Total prescription volume shot up 24% compared to the
Zegerid revenues came in at $20.8 million, recording
significant growth from year-ago sales of $9.4 million. Higher
prescription volume along with pricing of the authorized generic
version of Zegerid led to the improved sales.
Revenues of Cycloset increased 18.4% to $4.5 million.
Fenoglide revenues were $1.5 million. The product was launched in
Research and development expenses increased 4% to $7.7
million. Selling, general and administrative expenses increased
28.2% to $25 million. Sales force expansion and higher costs
associated with the Uceris launch led to the increase in SG&A
Santarus expects to report earnings of 63 cents to 68 cents in
2013 on total revenues of $320−$325 million. The Zacks Consensus
Estimate of 66 cents is within the company's guidance range. On
an adjusted basis, the company expects earnings of 92 cents to
$1.00 per share.
Santarus expects research and development expenses in the
range of $34−$38 million. Selling, general and administrative
expenses are estimated to be $131−$134 million. Santarus
earmarked $38−$40 million for the expansion of its sales force
and other promotional costs related to the launch of Uceris and
the re-launch of Zegerid.
We remind investors that in Jan 2013, Uceris received approval
from US Food and Drug Administration (FDA) for the induction of
remission in patients suffering from mild-to-moderate ulcerative
colitis. The product was launched in the US in Feb 2013.
We also note that in Sep 2012, the US Court of Appeals for the
Federal Circuit had reversed a part of an earlier decision issued
by the US District Court for the District of Delaware regarding
patent protection of Zegerid capsules and powder for oral
suspension prescription products. As a result, Santarus resumed
promotion of Zegerid in Feb 2013 and is looking to stem the
decline in prescription trends for the branded product.
Meanwhile, Santarus plans to file a Biologics License
Application (BLA) to the FDA for Ruconest in the second quarter
of 2013 for the treatment of acute attacks of angioedema in
hereditary angioedema (HAE) patients.
Santarus carries a Zacks Rank #3 (Hold). We expect investor
focus to remain on the Zegerid re-launch and the performance of
Uceris. Currently, stocks like
Celldex Therapeutics, Inc.
Array BioPharma, Inc.
) look more attractive. They all carry a Zacks Rank #2 (Buy).
ARRAY BIOPHARMA (ARRY): Free Stock Analysis
CELLDEX THERAPT (CLDX): Free Stock Analysis
GTX INC (GTXI): Free Stock Analysis Report
SANTARUS INC (SNTS): Free Stock Analysis
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