Looking up at the financial news recently, I saw that Horizon Therapeutics (NASDAQ: HZNP) is getting involved in the biggest buyout in the Pharmaceutical sector. It occurred to me to see what's unique about this company and why Amgen (NASDAQ: AMGN) is buying it for almost 28 Billion USD.
Horizon Therapeutics (NASDAQ: HZNP) is a biopharmaceutical company that develops and markets treatments for rare and rheumatologic diseases. The company has a solid financial track record, with revenue and earnings consistently growing over the past few years. In 2020, Horizon Therapeutics reported revenue of $2.2 billion and generated a net income of $412 million. This was a massive report, given that even the big pharma guys struggled to pull something tangible that year. Since then, this company's stock price has been going upward.
If you need an "end-of-the-year stock, here are three reasons why Horizon Therapeutics could be an outstanding stock to consider:
Profits from Drug sales
One reason to consider Horizon Therapeutics as a stock for 2022 is the company's positive clinical trial results. In 2021, Horizon Therapeutics (NASDAQ: HZNP) announced positive results from a phase 3 clinical trial of Teprotumumab in patients with active thyroid eye disease. Teprotumumab is a monoclonal antibody that targets and neutralizes insulin-like growth factor 1 receptor (IGF-1R),which is believed to play a role in developing thyroid eye disease.
The clinical trial results showed that Teprotumumab was effective at reducing proptosis (bulging of the eye) and improving other symptoms of the disease. If regulatory authorities approve the drug, it could significantly boost the company's revenue.
Diversified product portfolio
Another reason to consider Horizon Therapeutics is the company's expanding product portfolio. In addition to Teprotumumab, the company has several other products in various stages of development, including treatments for rare diseases such as hereditary transthyretin amyloidosis (hATTR) and sickle cell disease.
In 2021, Horizon Therapeutics (NASDAQ: HZNP) also made a strategic acquisition, buying Prevail Therapeutics, a biotechnology company focused on developing treatments for neurodegenerative diseases. This acquisition added several promising compounds to Horizon Therapeutics' pipeline, including a drug candidate for Parkinson's disease in phase 2 clinical trials.
Strong financial performance
In addition to its strong clinical and product development efforts, Horizon Therapeutics (NASDAQ: HZNP) has a solid financial position. However, the last Q3 report of this company could have been more impressive compared with YOY. For example, it was down about 52% in net profit margin and about 10% in revenue compared to YOY. However, despite the economy's constraints in 2022, this company still beat EPS by almost 24%, and revenue was 4% greater than expected.
The good news is that they have a track record of generating revenue. For example, the company generated cash flow from operations of $456 million in 2020 and ended the year with cash, cash equivalents, and short-term investments of $1.2 billion.
This financial strength allows the company to invest in research and development, acquire new products, and pay dividends to shareholders. Horizon Therapeutics has also established partnerships and collaborations with leading pharmaceutical companies, which can help bring its products to market and increase its reach.
Overall, Horizon Therapeutics' strong financial performance, expanding product portfolio, and positive clinical trial results make it a potentially attractive stock for investors in 2022. As with any investment, it is essential to research and carefully consider the risks before deciding. Potential investors should also be aware that the stock market can be volatile, and past performance is no guarantee of future results.
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