Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) Hits Multi-Year Lows

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ)

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) shares are dropping hard after they biotech firm released its Q4 and full-year earnings report. Q4 2016 net revenues were $20 million. That was a 233% YoY increase but fell short of analyst expectations of $23 million. Total revenues for the year ended December 31, 2016 were $54.3 million compared to $21.4 million for the year ended December 31, 2015. GAAP net loss for the year ended December 31, 2016 was $103.0 million, or $1.74 loss per share on a fully diluted basis, compared to net loss for the year ended December 31, 2015 of $37.8 million, or $1.16 loss per share on a fully diluted basis.

Company highlights included a patent issuance by the U.S. Patent and Trading Office for the company’s “Compositions and Methods for Delivery of Omeprazole Plus Acetylsalicylic Acid”. That patent will expire in 2032. This is the fourth patent that covers Yosprala which Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) currently markets in the U.S.A. In January the company submitted materials to gain approval for marketing Yosprala in the EU. For 2016, Arelez also announced the commercial launch of Blexten in the Canadian market.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) provided 2017 financial guidance as well. For 2017 the company is expecting net revenues between $80 and $100 million. Adjusted EBITDA will come in at a loss between ($25) and ($10) million.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) news was not well received. Aralez ended Friday trading at $3.53 and opened at $3.30, near the high of $3.32, and has hit a mid-day session low of $2.41 on volumes over 4.2 million. ARLZ has an average daily trading figure of barely more than 570,000. 10% of the shares held are being shorted with a short ratio of 8.71 – high by most standards. At current price levels, ALRZ is trading below all of its moving averages as well as 19% below its previous 52-week low. ARLZ has an all-time low of just under $2.50.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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