Horizon Pharma (HZNP) Tops Q1 EPS by 15c

Horizon Pharma (NASDAQ: HZNP) reported Q1 EPS of $0.16, $0.15 better than the analyst estimate of $0.01. Revenue for the quarter came in at $51.9 million versus the consensus estimate of $42.69 million.

Performance highlights:

VIMOVO gross and net sales during the three months ended March 31, 2014 were $50.0 million and $34.0 million, respectively, after deducting sales discounts and allowances of $16.0 million, including co-pay assistance costs of $4.6 million. The Company began promotion of VIMOVO with its rheumatology sales force on November 26, 2013 and began commercialization through its primary care sales force on January 2, 2014. According to data from IMS Health, new prescriptions for VIMOVO increased 10% in January, 18% in February and 15% in March versus the prior month, respectively, as the installed base of prior VIMOVO prescribers were very responsive to active promotion for the first time in years and the commercial business outgrew the decline of the government and cash business. According to data from IMS Health, total prescriptions for VIMOVO in the first quarter of 2014 were 69,368.

DUEXIS gross and net sales during the three months ended March 31, 2014 were $36.4 million and $13.9 million, respectively, after deducting sales discounts and allowances of $22.5 million, including co-pay assistance costs of $11.3 million, compared to gross and net sales of $6.7 million and $4.9 million, respectively, during the three months ended March 31, 2013. The increase in DUEXIS sales during the three months ended March 31, 2014 compared to the prior year period was primarily the result of prescription volume growth driven by expansion of the field sales organization and product price increases implemented during the course of 2013 and in January 2014. DUEXIS sales discounts and allowances increased from the prior year period and from the fourth quarter of 2013 primarily due to higher co-pay costs as a result of the Company's strategy of keeping patients in spite of higher deductibles and managed care plan changes at the beginning of the calendar year, and higher managed care rebates in the quarter driven by channel mix. The Company expects a moderating of DUEXIS sales discounts and allowances in the coming quarters as patients meet their plan deductibles and co-pay costs are reduced. According to data from IMS Health, total prescriptions for DUEXIS in the first quarter of 2014 were 53,368, versus 39,365 in the first quarter of 2013, an increase of 36%.

RAYOS gross and net sales were $5.1 million and $3.3 million, respectively, during the three months ended March 31, 2014 after deducting sales discounts and allowances of $1.8 million, including co-pay assistance costs of $0.8 million, compared to gross and net sales of $0.4 million and $0.3 million, respectively, during the three months ended March 31, 2013. The increase in RAYOS sales during the three months ended March 31, 2014 compared to the prior year period was primarily attributable to increased volume driven by the expansion of the Company's sales force focused on RAYOS and product price increases implemented during the course of 2013 and in January 2014. According to data from IMS Health, total prescriptions for RAYOS in the first quarter of 2014 were 2,945, versus 1,152 in the first quarter of 2013.

LODOTRA gross and net sales during the three months ended March 31, 2014 were $0.7 million compared to gross and net sales of $3.6 million and $3.5 million, respectively, during the three months ended March 31, 2013. The decrease in LODOTRA sales during the three months ended March 31, 2014 compared to the prior year period was the result of timing of product shipments to the Company's European distribution partner, Mundipharma. LODOTRA sales to Mundipharma occur at the time the Company ships product based on Mundipharma's estimated requirements. Accordingly, LODOTRA sales are not linear or directly tied to Mundipharma sales to the market and can therefore fluctuate from quarter to quarter.

For earnings history and earnings-related data on Horizon Pharma (HZNP) click here.

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