Two Pharma Stocks Moving On Tuesday: Horizon Pharma Falls 6%, KemPharm Gains 9%

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Two Medical Companies Plunging On Monday

Pharmaceutical stocks are risky for investors and large daily losses are quite common, even for mega cap companies like Bristol-Myers Squibb (NYSE: BMY) which lost more than 10 percent in one day after its cancer drug therapy performed poorly in a clinical trial.

Must Read: What Happened To Bristol-Myers Squibb On Monday?

Here are two pharmaceutical stocks which either rewarded shareholders or disappointed them, depending on which side of the trade they took.

Horizon Pharma Falls 6%

Horizon Pharma, a biopharmaceutical company that focuses on developing therapies that address unmet medical needs, reported its preliminary third quarter results.

In a regulatory filing, the company said that it expects its adjusted third quarter sales to be in a range of $272 million to $274 million and adjusted EBITDA to be in a range of $139 million to $141 million.  The company noted that its outlook represents the low end of its previously announced full-year net sales guidance range.

Horizon Pharma added that it now expects incremental operating expenses to reflect investments it is making to support future growth opportunities.  Specifically, the company is transitioning its business mix towards orphan disease medicines and also creating a more durable primary care business.

KemPharm Gains 5%

KemPharm (NASDAQ: KMPH) is a nanol-cap clinical stage specialty pharmaceutical company that focuses on the development of prodrugs.

KemPharm announced on Tuesday that its investigational New Drug (IND) application for KP415 has been accepted by the U.S. Food and Drug Administration (FDA).

KP415 is used for the treatment of attention deficit hyperactivity disorder.  Following the FDA’s approval, KemPharm expects to commence and complete a proof of concept trial prior to the end of 2016.

Looking forward to next year, Kem Pharm expects additional human clinical trials to begin in the first half of 2017.  The company then plans to submit a New Drug Application (NDA) submission for its therapy as early as 2018.

Preclinical studies of its therapy have demonstrated what the company believes to be significant benefits compared to already existing and FDA-approved treatments.

“We believe KP415 offers the opportunity to address this market dynamic with a prodrug technology that, in pre-clinical studies, has demonstrated both extended release properties and a pharmacokinetic profile that could enable a more predictable therapy compared with currently available, immediate-release d-MPH products,” stated Travis C. Mickle, Ph.D., President and Chief Executive Officer of KemPharm