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.