Why Horizon Pharma (HZNP) Stock Is Up Today
NEW YORK (TheStreet) -- Shares of Horizon Pharma (HZNP) - Get Report were gaining 12.3% to $23.58 on Monday after the pharmaceutical company released its 2016 revenue and EBITDA guidance, and reviewed its 2020 long-range plan.
Horizon Pharma said it expects to report net sales of $950 million to $975 million for full year 2016, which represents more than 25% year over year growth at the midpoint of its 2015 and 2015 guidance ranges. Analysts expect the company to report revenue of $885.85 million for 2016.
The drug company expects EBITDA of $460 million to $475 million for 2016, which represents 30% year over year growth at the midpoint.
Horizon also announced that it believes its net sales could double by 2020 due to its expanding orphan business. The company said it expects the orphan business unit, which includes ACTIMMUNE and RAVICTI, to represent at least 60% of its total net sales by 2020.
"Since our company's inception, we have built a strong and diversified portfolio of medicines through best-in-class commercial execution and value-enhancing acquisitions that we expect will drive nearly $1 billion in net sales in 2016," Chairman, President, and CEO Timothy P. Walbert said in a statement.
Walbert continued, "As we look to the future, we believe our long-range plan has the potential to double net sales by 2020, led by our rapidly expanding orphan business. We expect to accelerate clinical development of ACTIMMUNE, with a specific focus on Friedreich's ataxia and cancer."
Horizon Pharma announced its third quarter financial results on Friday.
TheStreet Ratings team rates HORIZON PHARMA PLC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate HORIZON PHARMA PLC (HZNP) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its disappointing return on equity.
You can view the full analysis from the report here: HZNP
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.