Hyperion Therapeutics’ Q4 Report Beats Estimates

Hyperion Therapeutics Inc (NASDAQ:HPTX) released its fourth quarter and full year 2014 financial results on February 26th. The biopharmaceutical company focuses on treatments for urea cycle disorders, a form of inherited metabolic disease.

HPTX posted revenue of $30.8 million for the fourth quarter from its two products, Ravicti and Buphenyl, beating the analyst consensus of $24.6 million and marking a 65% year-over-year increase from $18.6 million. The company posted $0.47 earnings per share on a diluted basis, a substantial increase from $0.19 posted in the same quarter of last year. This figure surpassed analysts’ consensus estimate of $0.67. Looking forward, Hyperion expects to post total net revenue of $120 million to $128 million in 2015.

CEO Donald J. Santel was pleased with the report, noting, “2014 was another momentous year of growth… We have delivered strong quarter over quarter financial results, and importantly, we have contributed to the body of knowledge regarding the optimal treatment of UCDs via publication of data from our clinical trials.” Ravicti is pending approval in Europe and Hyperion expects to receive a decision by the end of the year.

Analysts were bullish on the stock after the strong report. Analyst Alan Carr of Needham reiterated a Buy rating on Hyperion Therapeutics on February 27th and set a price target of $37. Carr noted that fourth quarter Ravicti sales and total revenue were above estimates and points out that 2015 Ravicti sales guidance is in line with expectations. Carr sees “long-term upside opportunity” in Hepatic Encephalopathy, though the phase 3 trial has been postponed. He concluded, “Overall, we note strong commercial execution in [urea cycle disorder] and believe the stock is underappreciated in the rare disease space.”

Alan Carr currently has a 74% success rate recommending stocks with a +42.1% average return per recommendation.



Separately on February 27th, analyst Difei Yang of Brean Capital reiterated a Buy rating on Hyperion and set a price target of $40. Yang noted the “better-than-expected” Q4 report. The analyst believes that although the company’s 2015 guidance is “above consensus,” it is “an achievable objective.” Yang continued, “Despite being a profitable orphan drug company, the shares have stubbornly underperformed the group with similar assets… Because of the stock’s attractive valuation, we also believe Hyperion could be a take-out target.”

Difei Yang has a 68% overall success rate recommending stocks and a +10.5% average return per recommendation.



On average, the top analyst consensus for Hyperion Therapeutics on TipRanks is Strong Buy.