Note: EPS may not be comparable

OPKO Health (NASDAQ: OPK) reported Q4 EPS of ($0.38), $0.30 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $193.7 million versus the consensus estimate of $301.4 million.

Financial Highlights

• Net loss of $213.9 during the three months ended December 31, 2017 included $147.7 million of non-recurring or non-cash items consisting of:
  • $73.3 million of revenue adjustments
  • $13.2 million of intangible impairment related to VARUBI™
  • $61.2 million Income tax provision
• Consolidated revenues for the three months ended December 31, 2017 were $193.7 million compared to $275.5 million for the comparable period of 2016. During the three months ended December 31, 2017, revenue from services were negatively impacted by non-recurring reimbursement adjustments from commercial and federal payor programs of $73.3 million and by reduced sample volume of $9.3 million.Revenue from products included $9.1 million of revenue from RAYALDEE, including $6.2 million related to revenue previously deferred through September 30, 2017.
• During the three months ended December 31, 2017, operating expenses included investment in the commercial activities supporting the launch of RAYALDEE of $7.9 million, as well as continued investment in the Company’s pharmaceutical pipeline, with R&D expense increasing to $34.2 million. In addition, fourth quarter 2017 operating expenses included a $13.2 million impairment related to our VARUBI intangible assets as a result of our licensee’s discontinuation of the IV formulation.
• During the three months ended December 31, 2017, a $61.2 million income tax provision was recorded, principally as a result of the Tax Cuts and Jobs Act ($31.8 million) as well as recording a valuation allowance against our U.S. based deferred tax assets. The comparable period of 2016 includes an income tax benefit of $31.5 million.
• Cash, cash equivalents and marketable securities were $91.5 million as of December 31, 2017.
• OPKO strengthened its balance sheet with a $55 million private placement of convertible notes issued on February 27, 2018.

For earnings history and earnings-related data on OPKO Health (OPK) click here.