Why Santarus' Shares Vaulted Higher
Nov 8th 2012 1:59PM
Updated Nov 8th 2012 2:02PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biopharmaceutical company Santarus (NAS: SNTS) shot out of the gate, rising by as much as 11% today, after the company reported better-than-expected third-quarter results and boosted its full-year guidance.
So what: For the quarter, Santarus reported revenue of $54.7 million, 104% higher than the year-ago quarter, and a profit of $0.13, considerably higher than the $0.01 in EPS recorded last year. Both results were well ahead of the $0.10 in EPS and $53 million in revenue that Wall Street analysts had been projecting. Furthermore, Santarus upped its full-year revenue guidance to $210 million from a previous forecast of $200 million, and net income to a range of $12 million-$14 million from a previous range of $8 million-$11 million. Fueling these results was prescription growth increased of 49% for Cycloset and 28% for Glumetza, as well as positive late-stage results for Ruconest, a recombinant human C1 inhibitor.
Now what: Santarus shares may already have exploded higher this year, but following these results and considering the positive late-stage trial results for Ruconest, I see no reason why Santarus couldn't move even higher. Santarus is valued at just 12 times forward earnings and, while growth rates are unlikely to remain at triple-digits for long, should be able to maintain a healthy double-digit growth rate for years to come.
Craving more input? Start by adding Santarus to your free and personalized watchlist so you can keep up on the latest news with the company.
The article Why Santarus' Shares Vaulted Higher originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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