Why Horizon Pharma plc Stock Is Rising Today
Horizon Pharma (NASDAQ: HZNP), a specialty pharma company, saw its shares rise by as much as 21% in pre-market trading today. The drugmaker's stock is rising in response to a better-than-expected second-quarter earnings report that featured a modest boost to its 2017 annual revenue guidance. Specifically, the company now expects full-year 2017 net sales to come in at between $1.010 billion to $1.045 billion, compared to its prior guidance of $1 billion to $1.035 billion.
Image source: Getty Images.
Horizon's shares have been trading at a dirt-cheap valuation this year due to the decaying sales of its primary care business. Long story short, investors simply weren't buying the company's pivot to orphan drugs as its newfound growth driver after its primary care business ran into trouble with payers over controversial price hikes. However, this strong second-quarter earnings report clearly shows that Horizon's orphan-drug business is indeed the real deal. Second-quarter net sales for its rare-disease unit, after all, rose by an outstanding 70% year over year, and now make up 55% of total net sales.
Source: Fool.com
