A handful of bio-pharmaceutical stocks are announcing their financial results for the final quarter of 2014 this week. What should investors watch for?
Salix Pharmaceuticals (NASDAQ: SLXP):
Salix Pharmaceuticals is scheduled to announce its fourth quarter 2014 financial results on Monday, March 2nd, after market close. The company is expected to post a loss of -$0.29 a share, down from $0.93 earnings per share the same quarter last year.
Salix faced inventory issues in November when supply levels for its irritable bowel syndrome drug, Xifaxan, and other drugs were higher than it had previously guided, forcing the company to cut its full-year earnings forecast. With that said, Salix stated it will try to return inventory levels to levels attained three months ago for all its drugs by the end of 2015. This indicates that 2015 will bring little to no growth, if not losses.
However, Salix Pharmaceuticals stock jumped 35% in January as speculation of a merger and acquisition began circulating. By February, Valeant Pharmaceuticals International Inc. announced that it acquired Salix for $10.1 billion, or about $160 per share.
On average, the top analyst consensus for Salix Pharmaceuticals on TipRanks is Hold.
Receptos (NASDAQ: RCPT):
Receptos is set to announce its fourth quarter and year-end financial results on Tuesday, March 3rd, after market close. The company is expected to post a loss of -$1.08 a share, down from a loss of -$0.86 a share year-over-year.
Receptos is known for developing therapies for treating immune and metabolic diseases. The company’s leading drug is RPC1063, which is an oral supplement that was tested in Phase 2 and 3 clinical trials to treat relapsing multiple sclerosis (RMS) and ulcerative colitis (UC). RPC 1063 is also currently in a Phase 2 trial of treating inflammatory bowel disease (IBD).
The company said recently that RPC1063 met primary endpoints in a Phase II trial as a treatment for colitis. A Phase III study in colitis and a Phase II study in Crohn’s disease are expected in 2015.
Since September 2014, Recepto’s shares have increased 155% due to its ongoing positive results from RPC1063.
On average, the top analyst consensus for Receptos on TipRanks is Strong Buy.
Tetraphase (NASDAQ: TTPH):
Tetraphase is poised to announce its fourth quarter and full year 2014 financial results on March 5th after market close. The company is expected to post a loss of -$0.60 per share, down from a loss of -$0.49 per share the same quarter a year prior.
In December 2014, Tetraphase revealed that its new antibiotic, Eravacyline, proved to be successful in a late stage study. Eravacycline is meant to treat infections caused by gram-negative bacteria, a type of antibiotic-resistant pathogens mostly knows as superbugs. Tetraphase is seeking to apply for U.S. regulatory approval of the drug by the end of 2015.
If approved, the drug will compete with a variety of new superbug-fighting antibiotics, including drugs from Cubist Pharmaceuticals, Actavis Plc and AstraZeneca Plc.
On average, the top analyst consensus for Tetraphase on TipRanks is Strong Buy.