Actelion Beats on Q1 Earnings and Sales - Analyst Blog
April 17 2014 - 10:00AM
Zacks
Actelion
Ltd. (ALIOF) reported first quarter 2014 earnings
of $1.64 per American Depository Receipt (ADR), up 23.6% from the
prior-year earnings of $1.32 per ADR. Earnings were well above the
Zacks Consensus Estimate of $1.12.
First quarter revenues rose 12.8%
year over year to $525.3 million, beating the Zacks Consensus
Estimate of $504 million.
Quarter in
Details
We note that all growth rates below
are in constant exchange rates.
Tracleer revenues were up 7% in the
first quarter from the prior year mainly due to U.S. rebate
reversal and U.S. price increases. Tracleer sales were strong in
markets where Opsumit is yet to be launched. Tracleer sales also
benefited from growth in Japan and the digital ulcer indication in
Europe.
Ventavis sales were up 5% from the
prior year due to U.S. rebate reversal and U.S. price
increases.
Veletri, launched in 2010, did very
well with sales soaring 134% above the prior year. Growth was
largely driven by demand in Japan.
Zavesca sales were up 16% from the
prior year. Strong sales of the drug for the Niemann-Pick type C
indication in ex-U.S. markets and increasing prices contributed to
its outperformance.
Opsumit (pulmonary arterial
hypertension (PAH)) is currently marketed in the U.S. (approved on
Oct 18, 2013), Canada, Australia, Germany, Swizerland, Denmark and
Norway. Opsumit got EU approval in Dec 2013. Opsumit generated
sales of CHF 15 million (approximately $16.8 million) in the
reported quarter.
Valchlor was launched in Nov 2013
to CTLC Centers of Excellence. Valchlor sales in the first quarter
of 2014 were CHF 1 million (approximately $1.1 million). By spring
2014, Valchlor will be widely available to U.S. prescribers.
Research & development expenses
(R&D) (excluding stock based compensation expenses,
amortization and depreciation) increased 4% due to higher clinical
development expenses. Selling, general and administrative expenses
(excluding stock based compensation expenses, amortization,
depreciation and the impact of doubtful debt provisions) were up
14%.
Pipeline
Update
The final data from a phase III
study on a PAH candidate, selexipag, is expected in mid 2014.
Actelion’s novel antibiotic, cadazolid, to treat Clostridium
difficile associated diarrhea is also in phase III. Results will be
out by early 2016. The FDA granted Qualified Infectious Disease
Product (QIDP) and Fast Track designation to cadazolid in Feb
2014.
Actelion failed to meet its primary
endpoint in a phase IV study (COMPASS-2) on Tracleer in Mar 2014.
The COMPASS-2 study evaluated the effect of Tracleer on the time to
first morbidity or mortality event in patients with symptomatic PAH
already treated with Revatio.
Outlook
Maintained
For 2014, the company expects core
earnings growth in the low single-digit percentage range, above a
tough 2013 comparison. Actelion maintains its 2015 outlook of
single-digit growth over a higher base.
Actelion carries a Zacks Rank #2
(Buy). The earnings and sales were both above expectations in the
first quarter, mainly to price increases in the U.S. markets. We
also note that the product sales in the reported quarter included
U.S. rebate reversals worth CHF 18 million. Opsumit’s approval in
many countries was encouraging. More than 2,300 patients were on
Opsumit at the end of Mar 2014.
Other well-placed stocks that look
attractive at current levels include Salix Pharmaceuticals
Ltd. (SLXP), Impax Laboratories
Inc. (IPXL) and Enanta
Pharmaceuticals, Inc. (ENTA). Salix
Pharma and Enanta carry a Zacks Rank #1 (Strong Buy) while Impax
Labs holds a Zacks Rank #2.
ACTELION LTD (ALIOF): Get Free Report
ENANTA PHARMA (ENTA): Free Stock Analysis Report
IMPAX LABORATRS (IPXL): Free Stock Analysis Report
SALIX PHARM-LTD (SLXP): Free Stock Analysis Report
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