Horizon Pharma (HZNP) Stock Climbs On Solid Guidance


Horizon Pharma PLC (NASDAQ: HZNP)

Horizon Pharma is having an incredibly strong start to Tuesday trading following news of the company’s revisions to FY-2016 guidance. As the result of an acquisition, HZNP expects revenue for the year to come in a bit higher. Today, we’ll discuss the changes Horizon Pharma has made to their guidance, how the market is reacting to the news, and what we can expect to see from HZNP moving forward. So, let’s get right to it!

HZNP Raises FY-2016 Guidance

As mentioned above, HZNP announced today that it has raised guidance with regard to revenue for the full year. Now, instead of expecting to generate between $960 million and $975 million for the year, the company is expecting that it will generate between $1.03 billion and $1.05 billion. The reason for the raise in guidance is simple. HZNP recently announced the acquisition of Crealta Holdings, and that deal is expected to close by the end of the week. Because of the acquisition, Horizon Pharma will own Krystexxa, a treatment for chronic refractory gout. It is expected that sales of Krystexxa will cause revenue to climb higher than originally expected. In a statement, Timothy Walbert, HZNP CEO, had the following to say with regard to the news:

We have proven our ability to execute and to consistently grow our diversified portfolio and are confident in our ability to leverage our orphan and rheumatology expertise to ensure that more patients with chronic refractory gout receive access to Krystexxa… Krystexxa is central to our mission of helping patients live better lives by providing clinically-differentiated medicines that help address the challenges they face.”

How The Market Is Reacting To The News

As investors, we have learned that any time there is positive data with regard to a publicly traded company, we can expect to see gains in the value of that company’s stock. This is proving to be true when it comes to HZNP today. As a result of the announcement that Horizon Pharma is expecting higher revenue throughout the year 2016, the company’s stock is soaring in the market. Currently (10:57), HZNP is trading at $19.05 per share after a gain of 5.30% so far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively positive opinion of what we can expect to see from HZNP. As mentioned above, the acquisition of Crealta Holdings is great news for the company. By adding Krystexxa to their list of treatments that are currently on the market, Horizon Pharma is likely to make more money throughout the year. Let’s face it – investors ultimately invest for growth. So, when there is a prospect of things turning out better than expected, that’s great news! Based on the acquisition and increased guidance, investors are likely to remain excited for quite some time. As a result, we can expect to see gains. Now, don’t get me wrong, even during strong positive trends, there will be bad days. However, in the case of HZNP, I’m expecting to see more growth than declines, leading to positive movement in the market overall.

What Do You Think?

Where do you think HZNP is headed moving forward? Let us know your opinion in the comments below!

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