Gauging the Performance of Horizon Pharma’s Rayos in 3Q16



Horizon’s Rheumatology segment

Horizon Pharma’s (HZNP) Rheumatology segment, which includes Krystexxa and Rayos/Lodotra, rose 217.0% to $40.7 million in 3Q16. For more information on the two drugs’ indications and sales projections, please refer to Understanding the Growth Drivers behind Horizon’s Rheumatology Business Unit.

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How did Rayos perform in 3Q16?

During the third quarter of 2016, Rayos, a delayed-release prednisone, rose 15.0% to $13.4 million compared to 3Q15. Rayos’s growth was driven by strong prescription volume following broader coverage in the rheumatology market and improved commercial execution.

Rayos’s prescription volume growth resulted in a $2.4 million rise in sales for 3Q16. However, higher co-pay and patient assistance programs caused a lower net pricing for Rayos, which made it fall $0.70 million. So Rayos’s overall net sales rose $1.7 million in 3Q16.

Growth drivers for Rayos

In the United States, Horizon Pharma plans to focus on Rayos’s rheumatology indications. The company estimates that the target population for Rayos in the United States is around 4.0 million people. The company plans to drive Rayos’s sales by increased awareness, leading to higher market share.

Rayos has an advantage over prednisolone because it’s the only prednisolone that’s conveniently timed in the most active form of RA (rheumatoid arthritis), PMR (polymyalgia rheumatica), and lupus.

If you want exposure to growing Horizon but at the same time avoid company-specific direct risks, you can invest in the iShares Nasdaq Biotechnology (IBB). Horizon accounts for 0.47% of IBB’s total holdings. IBB also holds 8.8%, 7.5%, and 7.1% in Celgene (CELG), Biogen Idec (BIIB), and Amgen (AMGN), respectively.

In the next part, we’ll look at Krystexxa, Horizon Pharma’s major rheumatology drug.


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