Horizon Therapeutics (HZNP) is expected to double its second-quarter earnings in August, leading HZNP stock to run up and break out on Thursday.
The biotech company is known for gout treatment Krystexxa and its new medicine, a treatment for thyroid eye disease called Tepezza. The Covid pandemic threw a wrench into first-quarter Tepezza sales as a short-term supply issue disrupted manufacturing.
Now, expectations are for Horizon to capture nearly 50% sales growth in the second quarter and a triple-digit increase in earnings.
Ahead of those bullish forecasts, HZNP stock broke out of a flat base with a buy point at 97.46 on MarketSmith.com‘s weekly chart. In afternoon trading on the stock market today, HZNP stock rose 3.9% near 99.90.
HZNP Stock: Earnings Appear Bullish
For the second quarter, HZNP stock analysts polled by FactSet expect Horizon to report adjusted earnings of 87 cents per share and $691 million in sales. Earnings would soar nearly 118%. Sales would jump more than 49% on a year-over-year basis.
Rare disease treatments known as orphan drugs — which includes Krystexxa and Tepezza — would account for close to 61% of total sales.
Despite the slow Tepezza quarter in which sales plunged 91%, Horizon raised its guidance for the full year. The company guided to $2.75 billion to $2.85 billion in full-year sales, up from its prior estimate for $2.7 billion to $2.8 billion.
The guidance assumes full-year Tepezza sales of greater than $1.28 billion and for Krystexxa sales to top $500 million.
Shares Rally Year To Date
Horizon is on deck to report its second-quarter earnings on Aug. 4.
HZNP stock has climbed more than 36% on a year-to-date basis, as of Thursday afternoon.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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