Ultragenyx Pharmaceutical Inc. RARE incurred a loss of $3.50 per share in third-quarter 2022, which includes acquisition expenses incurred to acquire GeneTx. Excluding the GeneTx acquisition cost, the company incurred a loss of $2.43 per share, wider than the Zacks Consensus Estimate of a loss of $2.29. The company reported a loss of $1.08 per share in the year-ago quarter.
Ultragenyx’s total revenues amounted to $91 million in the third quarter, up 11.1% year over year. The top line missed the Zacks Consensus Estimate of $99 million.
Shares of Ultragenyx have lost 51.7% in the year so far compared with the industry's decline of 19.6%.
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Ultragenyx markets three drugs, namely Crysvita, Mepsevii and Dojolvi. Crysvita is approved for treating X-linked hypophosphatemia, an inherited disorder and tumor-induced osteomalacia, an ultra-rare disease. Mepsevii is approved to treat Mucopolysaccharidosis VII (MPS VII), also known as Sly syndrome. Dojolvi was approved in June 2020 for all forms of long-chain fatty acid oxidation disorders (LC-FAOD).
Quarter in Detail
Crysvita’s total revenues were $70 million, up 27.1% year over year, driven by increased demand for approved indications. Crysvita revenues in Ultragenyx territories rose 28.2% to $64.5 million in the third quarter and included $51.3 million from the North America profit share territory and $13.2 million of net product sales for the drug in other regions. Total royalty revenues related to the sales of Crysvita in the European region were $5.4 million. Ultragenyx sold its Crysvita rights in the European territory to Royalty Pharma in December 2019.
Mepsevii product revenues were $6.0 million in the third quarter compared with $3.9 million reported in the year-ago quarter. Dojolvi product revenues were $13.3 million compared with $10.7 million in the year-ago quarter, driven by strong new patient demand.
Operating expenses increased 84% to $315.8 million in the third quarter. Operating expenses for the reported quarter include research and development expenses of $237.3 million, selling, general and administrative expenses of $69.8 million and $75.2 million spent to acquire GeneTx.
Ultragenyx reaffirmed the guidance it had provided earlier this year. The company expects Crysvita revenues in the range of $250-$260 million in Ultragenyx territories. Dojolvi revenues are expected to be $55-$65 million
In July, Ultragenyx announced an update from the phase I/II study evaluating GTX-102 for treating Angelman syndrome, a rare neurogenetic disorder. The update included positive interim data from the above-mentioned open-label, dose-escalating phase I/II study that evaluated GTX-102 in pediatric patients having genetically confirmed diagnosis of full maternal UBE3A gene deletion. The company continues to enroll and dose patients in the dose escalation cohorts of the phase I/II study.
Along with the update, Ultragenyx also exercised its option to acquire GeneTx for an upfront payment of $75 million plus future milestone and royalty payments. The company has completed the acquisition.
Currently, Ultragenyx is dosing patients in a phase II/III Orbit study of UX143 for the treatment of osteogenesis imperfecta (“OI”) in patients aged between five to less than 26 years. The company expects to complete enrollment by early 2023, intends to report data from the phase II portion of the study by mid-2023 and transition to phase III.
Ultragenyx also has plans to initiate an additional study in children with OI under five years of age in the first half of 2023.
In July, Ultragenyx recently sold 30% of the royalty interests it receives from partner Kyowa Kirin Co Ltd. (KKC) on future sales of its rare disease drug, Crysvita, in the United States and Canada. In return, RARE will receive $500 million without diluting capital. This money will be used by Ultragenyx to fund its ongoing clinical studies as well as planned commercial activities.
Ultragenyx Pharmaceutical Inc. Price, Consensus and EPS Surprise
Ultragenyx Pharmaceutical Inc. price-consensus-eps-surprise-chart | Ultragenyx Pharmaceutical Inc. Quote
Zacks Rank & Stocks to Consider
Ultragenyx currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Intellia Therapeutics NTLA, Kodiak Sciences KOD and Puma Biotechnology PBYI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intellia Therapeutics’ loss estimates for 2022 have improved from $5.82 to $5.78 in the past 30 days. Shares of Intellia have declined 56.7% year to date. Earnings of NTLA missed earnings estimates in all the last four quarters. NTLA delivered a negative earnings surprise of 28%, on average.
Kodiak Sciences’ loss estimates for 2022 have remained steady at $7.12 over the past 30 days. Shares of Kodiak have declined 91.9% year to date. Earnings of KOD beat earnings estimates only once in the last four quarters. KOD delivered a negative earnings surprise of 20.20%, on average
Puma Biotechnology’s loss estimates for 2022 have remained steady at 6 cents over the past 30 days. Shares of PBYI have declined 29% year to date. Earnings of Puma beat earnings estimates in three of the trailing four quarters and missed the same in the remaining occasion. PBYI delivered an earnings surprise of 201.37%, on average.
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