The Shares of Orphan Pipeline Company, $HZNP, Have Been Destroyed

The rip-off artists at HZNP just guided down in a significant way — leading to the complete destruction of its shares, now down by 30%. This is a ‘roll up’ company that acquires drugs and then jacks up their prices, similar to the practices of VRX, MNK and ENDP. Companies like HZNP are what’s wrong with the pharmaceutical industry and they must be stopped.

A most heinous horizon awaits shareholders

Reports Q1 (Mar) earnings of $0.21 per share, $0.02 worse than the Capital IQ Consensus of $0.23; revenues rose 7.9% year/year to $220.9 mln vs the $248.71 mln Capital IQ Consensus.
Co announces its Board authorized a share repurchase program for ~10% of shares outstanding

Co issues downside guidance for FY17, lowers FY17 revs to $1.00-1.035 bln from $1.24-1.29 bln vs. $1.26 bln Capital IQ Consensus Estimate.

The Company revised its full-year 2017 adjusted EBITDA guidance to $315 million to $350 million from $525 million to $575 million, which assumes the lower net sales range and accounts for cost reductions, primarily in its primary care business, and a reinvestment of a portion of these reductions in KRYSTEXXA to maximize its long-term potential.

It also reflects an ~$20 million increase in operating expenses, primarily in R&D, for full-year 2017 related to teprotumumab.

The Company is raising its estimate of peak annual net sales for KRYSTEXXA to $400 million from $250 million

$HZNP – this quarter was a pretty significant miss in addition to the guide down. Primary care did $65.6M in 1Q17 vs $111.0M in 1Q16. pic.twitter.com/opdDm521rh

— Brad Loncar (@bradloncar) May 8, 2017

Naturally, conjoining the horrible announcement of their earnings was an acquisitions. They’re acquiring River Vision Development for $145m.