Keryx Biopharmaceuticals (NASDAQ:KERX) Downplays Wider Than Expected Net Loss

Keryx Biopharmaceuticals (NASDAQ:KERX)

Keryx Biopharmaceuticals (NASDAQ:KERX)

Shares of Keryx Biopharmaceuticals (NASDAQ:KERX) fell 4.98% after the company reported wider than expected Q2 net loss of $0.22 cents a share, against Wall Street estimates of a loss of $0.17 cents share. The second quarter results, according to CEO Greg Madison, underscored strong Auryxia demand.

Keryx Biopharmaceuticals (NASDAQ:KERX)
One month daily candlebar graph for $KERX

Thursday’s sell-off put more pressure on Keryx Biopharmaceuticals (NASDAQ:KERX) as it continues to trade in a tight $6.83 to $7.51 a share range. It awaits to be seen if the stock will fall further after finding support around the $7.00 per share mark.

Auryxia is Keryx Biopharmaceuticals (NASDAQ:KERX) lead product, approved in the U.S. in 2014 for the control of serum phosphorus levels in patients with chronic kidney disease. The company gained approval for the drug in Europe for the control of hyperphosphatemia in 2015.

The commercial stage biopharmaceutical company has licensing and collaboration agreements with Japan Tobacco Inc. and Torii pharmaceuticals for the sale of Auryxia in Japan. The company is also investigating the use of ferric citrate for the treatment of iron deficiency anemia in adults with non-dialysis dependent CKD.

Q2 Earnings Report

Keryx Biopharmaceuticals (NASDAQ:KERX) net loss in the quarter came in at $86.5 million, nearly double the net loss of $44.7 million reported last year. The company attributes the increase to a one-time recognition of a $63 million non-cash debt discount.

Total Revenues for the three months ending June 30, 2017, came in at $15.1 million compared to $9.3 million reported last year. Auryxia sales accounted for $14.1 million of the total revenue in the quarter, compared to $8.3 million as of Q2 2016. During the quarter, the company serviced 21,100 Auryxia prescriptions compared to 13,150 last year.

“The second quarter, highlighted by reported strong demand and sales of Auryxia, gives us the confidence to raise Auryxia’s 2017 net product sales guidance to $62 to $66 million,” said, Scott Holmes Chief Financial Officer.

Keryx Biopharmaceuticals (NASDAQ:KERX) is currently seeking approval for the use of Auryxia in the treatment of iron deficiency anemia. Approval will expand the drug’s target market allowing the company to use its commercial infrastructure to target more sales. The inclusion of the drug in Medicare Part D is also expected to have an impact on total sales as the addition will result in unrestricted access to 95% of patient’s on Phosphate binder.

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: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Author: James Marion

James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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