Santarus’ Shares Rally on Upbeat Outlook on Current Fiscal, Beats Q4 Estimates (SNTS)
Shares of Santarus Inc. (NASDAQ: SNTS) rallied on Tuesday after the specialty pharmaceutical company’s revenue and earnings for the fiscal fourth quarter showed robust growth. The Company also provided a very optimistic outlook on earnings for the current fiscal, last evening.
For the current fiscal year, the San Diego, California-based Company expects adjusted earnings to be in the range of 92 cents a share to $1 a share, comfortably above Thomson Reuters’ poll which showed analysts’ consensus estimate for earnings of 70 cents a share. The Company also maintained its revenue guidance.
Commenting over the results, Santarus’ President and Chief Executive Gerald T. Proehl said to analyst in earnings call, “We believe that 2012 was an inflection year for Santarus, with strong revenue growth and greatly improved earnings and cash flow compared with 2011.”
Back in September, Santarus received a tremendous boost after the U.S. Court of Appeal partly overturned a lower court’s ruling, saying that certain patent claims linked to its Zegerid acid reflex drug were valid. Subsequently, the Company reintroduced this product.
Santarus said that growth momentum has continued in the current fiscal as the U.S. Food and Drug Administration in January approved its drug Uceris, a treatment meant for chronic inflammatory bowel disease.
For the fiscal fourth quarter, Santarus reported a profit of $5.5 million or 8 cents a share, compared to a profit of $1.9 million or 3 cents a share, in the year earlier quarter. Revenue during the period leaped 65% to $70.2 million.
Analysts polled by Thomson Reuters had forecasted earnings of a penny a share on revenue of $62 million.
While sales of its Glumetza extended-release tablets meant to treat diabetes and its biggest revenue generator, climbed 49% to $42.6 million, sales of Zegerid increased more than twofold to $20.8 million.
Meanwhile, total costs and expenses jumped 56%.