Wall Street is in the heart of earnings season with three key biotechnology stocks slated to announce their quarterly financial results this week. What should investors look for in Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), Sarepta Therapeutics Inc(NASDAQ:SRPT), and GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH).
Ariad Pharmaceuticals, Inc.
Ariad Pharmaceuticals will announce second quarter 2015 earnings results on Wednesday, August 5, before the market opens. The Street expects the company to post a loss of ($0.27) per share on $33.24 million in revenue, down from a loss of ($0.19) per share but up from $12.11 million in revenue the same quarter a year prior.
The company’s earnings report will likely center around Iclusig; Ariad’s lead drug used to treat specific forms of leukemia. On July 29, Ariad announced it will receive up to $200 million in financing from PDL BioPharma, Inc. In return, PDL will receive a mid-single-digit royalties on future sales of Iclusig until the company collects a fixed internal rate of return.
Ariad will use the funds to organize a front-line trial of brigatinib, its new ALK inhibitor, in patients with non-small cell lung cancer in addition to its Iclusig initiatives.
Out of 4 analysts polled by TipRanks, 2 analysts are bullish on Ariad Pharmaceuticals and 2 are neutral. The average 12-month price target for Ariad is $10.50, marking a 28.68% potential upside from where the stock last closed. On average, the all-analyst consensus for Ariad Pharmaceuticals is Hold.
Sarepta Therapeutics Inc
Sarepta Therapeutics is slated to post second quarter 2015 earnings results on Thursday, August 6, before the market opens. The Street estimated the company will post a loss of ($1.21) per share on $100,000 in revenue, marking a significant drop from a loss of ($0.85) per share on $2.58 million in revenue from the same quarter last year.
Sarepta Therapeutics recently secured $40 million in debt financing thanks to a credit and security agreement with Midcap Financial. Sarepta will be able to borrow up to $40 million at an annual rate of 7.75%.
Additionally in July, the company announced on July 31 that it granted equity awards as an incentive to the employment of ten individuals hired by Sarepta. The equity awards were previously approved by the Compensation Committee of the company’s Board of Directors.
Out of 10 analysts polled by TipRanks, 6 analysts are bullish on Sarapta Therapeutics and 4 are neutral. The average 12-month price target for Sarepta is $32.13, marking a 0.66% potential upside from where the stock last closed. On average, the all-analyst consensus for Sarapta is Moderate Buy.
GW Pharmaceuticals PLC- ADR
GW Pharmaceuticals will announce third quarter 2015 earnings results on Thursday, August 6, before the market opens. The Street expects the company to post a loss of ($1.16) per share on $12.86 million in revenue, down from a loss of ($0.66) per share on $13.02 million in revenue year-over-year.
GW Pharma’s earnings report will likely focus on Epidiolex, its pipeline drug for epilepsy. Epidiolex is currently in Phase III testing and is showing signs of effectiveness.
The company’s main growth driver is expected to be Sativex, an FDA-approved therapy to treat spasticity associated with multiple sclerosis. GW Pharmaceuticals is currently testing the drug to treat cancer pain. However, in January one of these trials did not meet its primary endpoint. The company expects to provide more data on these trials in the second half of 2015.
There is currently 1 analyst polled by TipRanks who covers GW Pharmaceuticals with a bullish rating. The average 12-month price target of GW Pharma is $147.00, markng a 28.37% potential upside from where the stock last closed. On average, the all-analyst consensus for GW Pharmaceuticals is Strong Buy.