Novelion Therapeutics (NVLN) Stock: Climbing On Earnings

Novelion Therapeutics Inc (NASDAQ: NVLN) is up in a massive way this morning after reporting its earnings. The gains follow the incredible climb the stock had in the market yesterday, making it that much more impressive. Here’s what’s happening:

NVLN Reports Earnings

As mentioned above, Novelion Therapeutics reported its earnings for the third quarter this morning, and the report was overwhelmingly positive.

The Revenue Breakdown – In terms of revenue, NVLN did overwhelmingly well, reporting total GAAP revenue in the amount of $30.3 million for the quarter. That figure shows strong growth over the $28.7 million reported in the same quarter last year.

During the quarter, JUXTAPID revenues were down, coming in at $14.3 million. In the same quarter last year, the company reported $15.2 million in GAAP net revenues for JUXTAPID. On the other hand, MYALEPT is doing incredibly well. During the third quarter, the treatment led to revenue of $16.1 million, strong growth over the $12.3 million reported in the same quarter of 2017.

With the strong MYALEPT growth in the United States, and slaes growth in Japan, Brazil and other foreign markets, the decline of JUXTAPID was more than offset.

Losses – In terms of losses, NVLN also did pretty well. GAAP net losses for the quarter came in at $24.8 million. That’s a decline of 50% from the loss of $49.7 million reported in the third quarter of 2017.

In a statement, Michael Price, CEO at NVLN, had the following to offer:

In the third quarter we saw a positive impact from the cost reduction initiatives that we implemented throughout 2018, reflecting significant improvements in our operating expenses and bottom line, with GAAP net loss improving by approximately 50% and non-GAAP net loss improving by approximately 79% when compared to the same period in 2017. Additionally, we are pleased that our operating subsidiary, Aegerion Pharmaceuticals, Inc. (“Aegerion”), was able to secure the bridge financing that we announced yesterday, which we believe positions Aegerion to achieve a more comprehensive capital restructuring – our primary near-term goal.

What We’re Seeing From The Stock 

With a strong earnings report adding excitement to an already excitement fueled run, Novelion Therapeutics is having a great day in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:43), NVLN is trading at $1.78 per share after a gain of $0.53 per share or 42.32% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on NVLN. In particular, we’re interested in following the continued gorwth of MYALEPT as the treatment seems to be taking off. We’re also interested in following the story surrounding the company’s work to bring sales of JUXTAPID back up to par as well as their continued growth in Asia and emerging markets. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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