Boston, MA 05/08/2014 (wallstreetpr) – Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) showed solid growth in sales in the first quarter of 2014 as the recently launch products reported increase in the U.S. market. As a result, the Company also raised the guidance for FY2014. However, shares fell by ~22% after the announcement of first quarter results.
Profitability pressure
Aegerion’s net sales were $27 million in 1Q2014 versus $1.2 million in 1Q2013 due to high growth in Juxtapid prescriptions especially in the U.S. market that represents 96% of total product sales. But, the ex-U.S. sales were down by 70% due to delay in receiving orders from Brazil.
Commercial launch of Juxtapid increased the SG&A costs to $24.5 million and development costs related to additional indications increased the R&D expenses to $6.6 million.
So, the increasing product sales failed to generate positive cash flow during the quarter as a result of high SG&A and R&D costs. But, Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) improved its adjusted (non-GAAP) net loss from of $14.6 million, or $0.51 per share in 1Q2013 to $7.3 million, or $0.25 per share in 1Q2014.
Will Juxapid drive Aegerion to new height?
Aegerion’s Juxapid intends to treat homozygous familial hypercholesterolemia (HoFH). HoFH is a rare disease with extremely high levels of bad cholesterol, usually happens due to genetic defects.
Juxapid showed steady growth in prescription, in the U.S. and expects to see solid demand in rare disease. But, the ex-U.S. market requires more time to turn positive growth and may not have an adverse impact on Aegerion’s performance as it contributes only 4% of total sales during the first quarter.
Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) also initiated a Phase 3 studies the same molecule for combined treatment to reduce bad cholesterol with HoFH in adult Japanese patients.
Aegerion made significant progress expand the opportunity for Juxtapid and continues to grow in coming periods. So, the Company expects net sales in a range of $180-$200 million in FY2014 that anticipates positive cash flow from its operation in 2H2014.
The Company is financially capable of carry out the existing clinical studies and launch Juxtapid in European market. As of March 31, 2014, Aegerion has a cash balance of $116.8 million.
