Rare Disease-Focused Ascendis Pharma Stock Falls On Underwhelming Q2 Earnings, Guidance Cut
Portfolio Pulse from Vandana Singh
Ascendis Pharma's stock fell after reporting disappointing Q2 earnings and lowering its fiscal year 2024 sales guidance. The company missed revenue and EPS expectations, with significant sales deductions impacting results. Ascendis also entered a royalty agreement with Royalty Pharma.
September 04, 2024 | 1:09 pm
News sentiment analysis
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Ascending
NEGATIVE IMPACT
Ascendis Pharma reported Q2 sales of $38.76M, missing expectations and down from last year. EPS loss was larger than expected. Skytrofa sales guidance was cut, and a new royalty agreement was made with Royalty Pharma.
The significant miss on both revenue and EPS, along with the lowered sales guidance for Skytrofa, are likely to negatively impact investor sentiment. The stock's 15% drop in premarket trading reflects this. The royalty agreement provides some financial relief but does not offset the negative earnings news.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Royalty Pharma entered a capped synthetic royalty funding agreement with Ascendis Pharma, receiving $150M upfront for a 3% royalty on U.S. net sales of Yorvipath.
The agreement with Ascendis Pharma provides Royalty Pharma with a new revenue stream, which is positive for its financial outlook. However, the impact is moderate as it depends on the success of Yorvipath sales.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50