Global Blood Therapeutics Off on Results Miss, Analyst Rating Cut

Global Blood Therapeutics shares are lower after the company missed analysts' revenue and earnings expectations.
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Global Blood Therapeutics  (GBT) - Get Report shares lost more than a third their value Friday after the clinical-stage-biopharmaceutical company's third-quarter revenue and earnings lagged analysts' expectations and an analyst cut her rating.

At last check Global Blood shares were down 35% to $38.92. 

Analysts at Raymond James downgraded the company to market perform from outperform while questioning whether its sickle-cell treatment is the game changer that Wall Street had expected. 

“GBT shares will be range-bound until there are encouraging signals that Oxbryta’s growth trajectory is recovering to pre-covid levels," analyst Danielle Brill said. 

The San Francisco maker of drugs that treat sickle-cell disorder reported a quarterly loss of 97 cents a share vs. $1.07 in the year-earlier quarter. Revenue in the latest quarter was $36.9 million. The company didn't generate sales in the year-earlier quarter.

Analysts surveyed by FactSet were expecting a GAAP net loss of 73 cents a share on revenue of $44 million. 

The company during the third quarter launched Oxbryta, which directly targets the underlying cause of sickle-cell disease, Ted Love, a physician who is president and chief executive of Global Blood Therapeutics, said in a statement. 

Oxbryta recorded more than 1,000 new prescriptions in the quarter. "We delivered an increase in new prescriptions despite a significant increase in covid-19 infections in the U.S., including in states with the highest number of sickle-cell-disease patients -- who are at high risk of serious illness from covid-19," the executive said. 

The company said the growth in new prescriptions reflects increased use of telemedicine, with some weeks during the quarter seeing new prescriptions topping pre-covid-19 levels. 

"During the quarter, we took another step toward making Oxbryta available globally with a distribution agreement aimed at providing access to the large number of sickle cell patients in the Middle East region," Love said.