How Opko Health Fared in the Second Quarter of 2018
Revenue trends
Opko Health (
OPK) generated net revenues of $263.7 million in the second quarter of 2018 compared to $292.6 million in the second quarter of 2017. That reflects a 10% YoY (year-over-year) decline.
In the second quarter, its services division and products generated revenues of $216.1 million and $28.5 million, respectively, compared to $233.9 million and $29 million, respectively, in the second quarter of 2017. In the products segment, Rayaldee generated revenues of $4.8 million.
Opko Health also generated revenues of $19.1 million from the transfer of intellectual property in the second quarter. Those same revenues were $29.7 million in the second quarter of 2017.
In the first half of 2018,
the company had revenues of $518.6 million compared to $559 million in the first half of 2017.
Opko Health’s services business generated revenues of $427.4 million in the first half of 2018, while its products segment had revenues of $51.2 million. Its net revenues were $34.8 million from the transfer of intellectual property in the first half of the year compared to $45.3 million in the first half of 2017.
Earnings trends
In the second quarter, Opko Health reported a net loss of $6.2 million compared to a net loss of $16.9 million in Q2 2017. In the first half of 2018, it reported a net loss of $49.3 million compared to a net loss of $51.4 million in the first half of 2017.
In the second quarter, it reported a diluted loss per share of $0.01 compared to a loss of $0.04 in Q2 2017. In the first half of 2018, it reported a diluted net loss per share of $0.09 compared to a diluted net loss per share of $0.11 in the first half of 2017.
In the second quarter, Opko Health’s revenues and net loss benefited $10 million as a non-recurring milestone payment for Varubi.
Opko Health’s peers Acadia Pharmaceuticals (
ACAD), Ionis Pharmaceuticals (
IONS), and Progenics Pharmaceuticals (
PGNX) reported revenues of $57.06 million, $117.75 million, and $3.88 million, respectively, in the second quarter.
Expense trends
Opko Health’s (
OPK) cost of
revenues declined from $157.4 million in the second quarter of 2017 to $150.1 million in the second quarter of 2018. In the first half of 2018, its cost of revenues were $304.1 million compared to $312.2 million in the first half of 2017.
In the second quarter, it reported SG&A (selling, general, and administrative) expenses and R&D (research and development) expenses
of $87.7 million and $29.2 million, respectively, compared to $105.5 million and $33.1 million, respectively, in Q2 2017.
In the first half of
2018, its cost of revenues declined to $304.1 million from $312.2 million in the first half of 2017.
In the first half of
2018, its SG&A and R&D expenses were $179.2 million and $62.1 million, respectively, compared to $215.5 million and $59.7 million, respectively, in the first half of 2017.
Recent developments
In August, Opko Health completed the enrollment of its worldwide Phase 3 trial of somatrogon in children with GHD (growth hormone deficiency). The trial has enrolled 225 treatment-naïve children with GHD.
In July, Health Canada approved Rayaldee, a product of Opko Health and its partner Vifor Fresenius Medical Care Renal Pharma (VFMCRP), for commercialization in the Canadian market for the treatment of individuals with secondary hyperthyroidism who are at stage 3 or stage 4 of chronic kidney disease and have vitamin D insufficiency.
In July, Opko Health announced the completion of its enrollment of 110 candidates for the initiation of its Phase 2b dose escalation clinical study of OPK88003, an injectable oxyntomodulin drug with GLP-1
1 and glucagon dual agonist activity for the treatment of individuals with Type 2 diabetes and obesity.
Analyst recommendations
Of the six analysts tracking Opko Health (
OPK) in August, two have recommended a “strong buy,” and two have recommended a “buy” for the stock. One analyst has recommended a “hold,” and one has recommended a “sell.”
On August 8, Opko Health had a consensus
12-month target price of $12.10, which represents a ~120.4% return on investment over the next 12 months.
