Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) Stock Continues Trend

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:

Stock Performance

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 Pipeline

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.

Don’t miss out! Stay informed on $ARLZ and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) Spikes on Zontivity Launch

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ)

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) continues to edge higher as investors react to the commercial launch of the company’s lead product for myocardial infarction and peripheral artery disease. The stock was up by 16.18% in Thursday’s trading session to end the day at $1.58 a share.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ)
Daily Bar Graph of $ARLZ

It awaits to be seen if Thursday’s rally will mark the end of a downward trend that had pushed the stock to lows of $1 a share last month.  The stock is currently trading in a tight $1.35 – $1.68 trading range with a 52-week low of $1.09 a share.

Zontivity Commercialization

Aralez Pharmaceuticals is a global specialty pharmaceutical company focused on the development of novel treatment for improving patients’ lives. The Canadian company also acquires and commercializes products in the cardiovascular and pain management sectors. Zontivity is the company’s lead product in the cardiovascular arena indicated for the reduction of thrombotic cardiovascular events.

The company’s sales team is currently promoting Zontivity to more than 10,000 cardiologists across the U.S as well as primary care physicians and vascular surgeons. The company plans to enhance managed care coverage of Zontivity.

Aralez Pharmaceuticals is looking to strengthen its partnership with four of the largest pharmacy benefits managers in a bid of accelerating Zontivity sales. There are also plans to reduce patient co-pays to approximately $6 a month through subsidies. Additionally, the company is targeting diabetes patients that are also smokers as part of its marketing strategy.

From Arlez Pharmaceuticals press release: “We are encouraged by the early data following the launch of Zontivity® and we will continue to monitor prescribing data closely over the next few quarters to determine whether this trend continues,” Aralez Pharmaceutical’s in a statement.

Sales Force Reductions

Aralez has carried out a 32% U.S sales force reduction on Yosprala, a combination aspirin drug for the prevention of cardiovascular and cerebrovascular events. The move follows lackluster launch that appears to have hurts sales.  In a bid to accelerate sales, the company has initiated a new pricing strategy that will allow patients to access the drug for only $10 a month regardless of whether one has an insurance cover or not.

Separately, a U.S District Court has upheld the validity of two patents owned by Aralez Subsidiary covering VIMOVO, a non-steroidal drug for treating signs and symptoms of osteoarthritis.

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.

Don’t miss out! Stay informed on $ARLZ and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Aralez Pharmaceuticals Resorts to Cost Saving After Q1 Net Loss

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ)

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) posted a first-quarter net loss of $27.5 million or $0.42 a share just days after reporting a reduction in its sales force as it looks to save on costs of operation. The 32% reduction in the sales force is part of a strategic realignment of resources as the company moves to pay more emphasis on its Zontivity launch.

Q1 Financial Results

Revenues in the quarter more than tripled to highs of $26 million compared to $8.1 million in Q1 2016. Net product revenues came in at $6.7 million helped by the acquisition of Tribute as well as product sales of Yosprala and Fibricor. Toprol-XL and Zontivity generated net revenues of $15.6 million with Vimovo generating net revenues of $3.7 million.

The cost of product revenues, on the other hand, increased to $2.8 million from $2.5 million. Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) attributes the increase to the new product portfolio to the merger in February. SG&A expenses dipped to $30.8 million from $37.5 million driven by merger costs.

For the full year ending December 31, 2017, Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) says it expects net revenues of between $80 million and $100 million. The company also expects its EBITDA to be around $5 million.

Cost Saving Push

During the quarter Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) initiated a cost saving initiatives that is expected to reduce operational expenses by $23 million going forward. The scheme includes reduction of sales force while also shifting focus to territories with highest growth opportunities.

Focusing on Canadian core growth brands has already come into play as part of an effort that seeks to reinvigorate sales growth. Aralez Pharmaceuticals board of directors has also agreed or trimmed the cash portion of their fees as part of the cost-saving push.

“We are making a bold and significant change to our pricing strategy for Yosprala® aimed at allowing all patients to access the product for only $10.00 per month. In addition, we continue to implement our cost savings plan to further improve our cost structure and balance sheet to maximize and preserve our financial flexibility,” said Chief executive officer, Adrian Adams.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) has also entered into a licensing agreement with a multinational pharmaceutical company through its subsidiary Pozen Inc. As part of the non-exclusive license agreement, Pozen is to receive $4 million in an upfront payment which will also pave way for other milestone payments and royalties.

Aralez Pharmaceuticals Inc. (NASDAQ:ARLZ) was unchanged in Friday’s trading session after rallying by 0.47% to end the week at $2.13 a share.

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.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

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.