This is why investing in biotech stocks is the equivalent to gambling. HZNP enjoys stupendous growth for its products; but they warned, ever so slightly–causing its head to be summarily chopped off.
Via Briefing.com
Co reaffirms guidance for FY16 (Dec), sees FY16 (Dec) revs of $1.025-1.05 bln vs. $1.03 bln Capital IQ Consensus Estimate; sees adjusted EBITDA of $505-520 mln5
First-quarter 2016 net sales guidance would represent 79 percent YoY growth at the midpoint (Capital IQ consensus 101% growth); second-quarter 2016 net sales guidance would represent 35 percent year-over-year growth at the midpoint. First-quarter 2016 adjusted EBITDA guidance would represent 114 percent year-over-year growth at the midpoint and 34 percent of projected first-quarter 2016 net sales at the midpoint versus 29 percent of net sales in the first quarter of 2015.
Long Term Guidance: $2 bln in net sales in 2020.
It’s worth noting this company has been called a ‘little Valeant’ and has been tied into the whole corrupt system of hiking drug prices for profligate profiteering. Also, this is what happens when you warn, whilst trading north of 70x earnings.
plz short this so i can buy moar lolz
80% win rate trading HZNP since 2012. so, help me out folks
Is this a “biotech” or a “little Valeant”.
It can’t be both. Valeant isn’t any kind of tech, with R&D spending of only about 3% of sales.
I couldn’t agree with you more. It is a scam against the naive; not on the scale of the mortgages and tranche derivatives but definitely tantamount.