Brean's Jonathan Aschoff becomes the second analyst to come to NPS Pharmaceuticals' (NPSP -15.5%) defense after the shares plummeted Wednesday morning following Gattex guidance that perhaps wasn't as ebullient as the Street was hoping for.
"NPS delivered an above-expectation quarter again," Aschoff notes, adding that the company's guidance for patients on therapy by year-end "suggests a similar rate of new patient adds over Q4 as over Q3."
Shares of NPS Pharmaceuticals (NPSP -21.7%) are sharply lower in morning trading on the heels of the company's Q3 report.
Q3 Gattex sales: $11M (versus $4.8M in Q2). 235 patients on therapy.
Royalty revenues: $28.1M.
R&D spend: $18.8M (versus $18M in Q3 2012).
The U.S. launch of Gattex results in a 112% increase in SG&A.
Outlook: FY13 Gattex/Revestive net sales of $28-32M (versus previous guidance of $25-30M). Patients on therapy guidance is unchanged at 275-325. NPSP says that as of 2014, it will "no longer report the number of prescriptions and the number of patients on Gattex/Revestive in connection with its quarterly financial results." Opex still seen at $140-150M. (PR)
It appears a large number of NPS Pharmaceuticals (NPSP) shares were sold Friday morning at $32 each.
The company itself was not a part of the transaction. According to NPSP, "these were shares that were held by Takeda that they sold to Jefferies in a block trade and Jefferies has re-sold the shares through its sales distribution network."
Thursday evening, Cramer recommended "ringing the register on pretty much any biotech that's smaller than $10B." Stocks mentioned: NPSP, ISIS, CLDX, ACAD, TSRO
It looks like BofA is valuing Gattex (which is apparently seeing some off-label reimbursement of late) at around $23/share and Natpara (which may end up having higher peak sales than Gattex if you buy Leerink's thinking) at $20.
Adding another $2 for royalties brings the price target to $45, representing a 35% premium to Wednesday's close.
NPS Pharmaceuticals (NPSP) reports a wider than expected Q2 loss, but revenues came in above analyst estimates.
U.S. launch of Gattex accelerating with net product sales of $4.8M for the quarter.
The company now expects to achieve global Gattex/Revestive sales of $25M to $30M in 2013 with 275 to 325 patients on therapy by the end of the year.
Says it's preparing to engage in the pricing and reimbursement processes in key European countries with the goal of commercially launching Revestive in Europe in the first half of 2014.
With an estimated 6K to 12K patients eligible for treatment in targeted ex-U.S. countries, the company believes the international peak annual sales opportunity for Revestive is greater than that of Gattex in the U.S.