Aralez Pharmaceuticals Inc (NASDAQ:ARLZ)
Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) stock plunged 12.50% in Thursday’s trading session as investors reacted to a disappointing second quarter earnings report. A net loss of (-$27.5) million compared to (-$17.5) million reported a year earlier appears to have spooked the market thus fuelling the sell-off wave.
One month Aralez stock chart:
Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) stock is currently trading at all-time lows after disappointing Q2 earnings. The stock has been on a strong downtrend since late last year.
The stock currently has a negative net margin of 133.92% and a negative return on equity of 66.74%. A number of analysts have already initiated coverage of the stock with the majority of them rating the stock as a ‘sell’. ValuEngine lowered its rating on the stock to a ‘strong sell’ from a ‘sell’.
Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) is a global specialty pharmaceutical focused on the delivery of meaningful products for improving patients’ lives. The company generates shareholder value by acquiring, developing and commercializing products in cardiovascular, pain and other specialty areas. Its lead products include Fibricor, Cambia Fiorinal, and Fiorinal C.
During the second quarter, Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) announced the commercial launch of Zontivity which is indicated for the treatment of peripheral artery disease in patients with a history of post-myocardial history. A team of 75 sales representative is currently marketing the drug
“We are also delighted with the strength of the early launch metrics for Zontivity® and are pleased that, within weeks of our national launch we have already reached all-time high prescription levels,” said CEO Adrian Adams.
Cost Saving Push
Aralez reported revenues of $27.6 million for the second quarter up from $12.6 million reported a year earlier. The cost of product revenue dropped to $2.9 million from $3.4 million because of $0.8 million in inventory step-up costs associated with the Tribute merger.
Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) restructuring is gaining traction as the company continues to explore ways of reducing its costs of operations. In the second quarter, the company reduced its U.S sales force by 32% having also implemented a cost savings program designed to preserve financial flexibility. The company exited Q2 with $55 million in cash and cash equivalent which it says is sufficient to finance operations over the next 12 months.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.