Santarus rises on drug approval and 2013 outlook
NEW YORK (AP) — Shares of Santarus Inc. climbed Tuesday after the company received marketing approval for a new drug and issued a strong sales outlook for 2013.
THE SPARK: The company said Monday that the Food and Drug Administration approved its drug Uceris, which is intended to put symptoms of ulcerative colitis, an inflammatory bowel disease, into remission. Santarus plans to launch the drug in March.
THE BIG PICTURE: The company said it should meet or surpass its previous guidance in 2012, and its revenue outlook for 2013 was better than analysts had expected.
The San Diego company had forecast net income of $12 million to $14 million and $210 million in revenue for 2012. FactSet says analysts had projected net income of $14.2 million, or 20 cents per share, and $209.3 million in revenue.
In 2013 Santarus expects net income of $50 million to $54 million and revenue of $320 million to $325 million. Analysts had expected income of $54 million, or 76 cents per share, and $301.3 million in revenue on average.
Santarus also makes the acid reflux drug Zegerid. It is not currently marketing Zegerid, but is getting ready to resume sales because of a favorable court ruling regarding the patents on the drug.
THE ANALYSIS: Santarus should have a good year in 2013, said Roth Capital Markets analyst Scott Henry, who has a "Buy" rating on the company's shares. He said Uceris was a key drug for the company, and was optimistic about Santarus bringing Zegerid back to market and filing for marketing approval of a new drug.
SHARE ACTION: Santarus stock rose $1.26, or 11 percent, to $12.54 in late afternoon trading. The shares are up more than 80 percent since the end of August and have nearly tripled in value of the last 12 months.