5 Reasons to Invest in Horizon Therapeutics Amid Coronavirus
Good Rank and Rising Estimates: Horizon Therapeutics Public Limited Company HZNP carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Its earnings estimates have risen almost 61.6% for 2020 and 57.7% for 2021 over the past 60 days.
This year so far, Horizon’s shares have surged 108.1% compared with the industry’s growth of 1.9%.
Tepezza (Teprotumumab) Got FDA Approval Ahead of Schedule: The FDA approved its lead drug for the treatment for patients with thyroid eye disease (TED). With the approval, Tepezza became the first FDA-approved medicine for the treatment of active TED, which has a significant unmet need. The launch of the drug has been encouraging despite a challenging COVID-19 environment. Based on continued strength of Tepezza, the company increased both TEPEZZA’s and the full-year net sales guidance, as well as Tepezza’s peak U.S. annual net sales guidance for 2020.
Label Expansion Efforts for Marketed Products: Horizon is working on the label expansion of drugs like Tepezza, Krystexxa, Actimmune, Procysbi and Ravicti. The label expansions will further boost sales for the company.
The company expects to initiate a trial of Tepezza in patients with chronic TED.
It is also planning to initiate a pharmacokinetic study later in 2020 to explore the subcutaneous dosing of Tepezza, which is currently administered by infusion. The objective of the study is to inform the potential for additional administration options for Tepezza, which could provide greater flexibility topatients and physicians.
As part of its evaluation of additional indications for Tepezza, the company is planning to initiate an exploratory study in diffuse cutaneous systemic sclerosis (dcSSc) by the end of 2020.
Krystexxa (pegloticase injection)is the first and only FDA-approved medicine for chronic refractory gout. The company is currently evaluating the efficacy and safety of the concomitant use of Krystexxa with methotrexate to increase the complete response rate of Krystexxa in the MIRROR placebo-controlled RCT study. MIRROR RCT is the largest randomized study to evaluate the efficacy and safety of the concomitant use of Krystexxa with methotrexate as an immunomodulator to help more people with chronic gout refractory to conventional therapies — also known as uncontrolled gout — achieve a complete and durable response.
Horizon expects continued strong growth for Krystexxa and Tepezza, going forward in 2020. The company’s efforts to develop its pipeline are impressive.
Expansion of the Company’s Pipeline With Acquisition: On Apr 1, 2020, the company completed the acquisition of Curzion Pharmaceuticals, Inc. and its lysophosphatidic acid 1 receptor (LPAR1) antagonist candidate (renamed HZN-825) for the treatment of diffuse cutaneous systemic sclerosis (dcSSc). The company expects to begin a pivotal phase IIb study on the same in the first half of 2021.
Further Improvement of the Company’s Capital Structure: On Aug 3, 2020, the company completed the extinguishment of all $400 million of its 2.50% exchangeable senior notes due 2022. Since the beginning of 2019, the company has reduced its gross debt by approximately $1 billion, while maintaining a strong cash balance.
Horizon Therapeutics Public Limited Company Price and Consensus
Zacks Rank & Other Stocks to Consider
Some other top-ranked stocks in the healthcare sector include Emergent Biosolutions Inc. EBS, Bio Techne Corp TECH and Alimera Sciences Inc. ALIM. While Emergent and Bio Techne sport a Zacks Rank #1, Alimera carries a Zacks Rank #2 (Buy).
Emergent’s earnings estimates have increased from $3.45 to $5.60 for 2020 and from $3.73 to $6.67 for 2021 over the past 60 days.
Bio Techne’s earnings estimates have increased from $5.33 to $5.58 for 2020 and from $6.41 to $6.45 for 2021 over the past 60 days.
Alimera’s loss per share estimates have narrowed from $2.33 to $1.31 for 2020 and from 63 cents to 52 cents for 2021 over the past 60 days.
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