Portola Pharmaceuticals Stock Rose after Its Q3 2018 Results

Stock performance

On November 8, after Portola Pharmaceuticals released its third-quarter financial results, the stock price rose 21.41%. On November 8, Portola Pharmaceuticals stock price closed at $23.14, which was ~21.41% growth from its previous close of $19.06. On November 7, Portola Pharmaceuticals stock price closed at $19.06, which was ~2.80% growth from its previous close of $18.54. On November 7, the company hit its 52-week low of $18.18.

Portola Pharmaceuticals hit its 52-week high of $56.69 on December 21, 2017.

Revenue trends

Portola Pharmaceuticals generated revenues of $14.2 million in the third quarter—compared to $3.8 million in the third quarter of 2017. The company reported net revenues of $24.8 million during the first nine months of 2018—compared to $12.7 million during the same period in 2017.

Portola Pharmaceuticals Stock Rose after Its Q3 2018 Results

Portola Pharmaceuticals generated revenues of $7.1 million from product sales in the third quarter. The company generated revenues of $7.0 million from collaborations and licenses—compared to $3.8 million in the third quarter of 2017. Portola Pharmaceuticals’ product revenues were primarily due to Andexxa sales.

Portola Pharmaceuticals’ peers in the biopharmaceuticals market, Clovis Oncology (CLVS) and Puma Biotechnology (PBYI) generated revenues of $22.76 million and $62.60 million, respectively. Clovis Oncology witnessed ~35.41% YoY (year-over-year) growth in the third quarter. Puma Biotechnology reported revenues of $6.1 million in the third quarter of 2017.

Portola Pharmaceuticals, Clovis Oncology, and Puma Biotechnology’s revenue growth could boost the share prices of the SPDR S&P Biotech ETF (XBI). Portola Pharmaceuticals, Clovis Oncology, and Puma Biotechnology account for ~2.27%, ~2.37%, and ~2.60% of XBI’s total portfolio.

Earnings trends

In the third quarter, Portola Pharmaceuticals reported a net income and EPS of -$71.3 million and -$1.08, respectively—compared to its net income and EPS of -$82.9 million and -$1.41 in the third quarter of 2017. Portola Pharmaceuticals’ net income and EPS during the first nine months of 2018 were -$261.7 million and $3.97, respectively—compared to its net income and EPS of -$194.3 million and -$3.38 in the third quarter of 2017.

Expense trends

In the third quarter, Portola Pharmaceuticals reported the cost of sales, research and development, and selling, general, and administrative expenses of $4.3 million, $40.2 million, and $38.8 million, respectively—compared to $155,000, $55.3 million, and $28.9 million in the third quarter of 2017.

Financial outlook for 2018

After the third quarter, Portola Pharmaceuticals updated the estimates for its GAAP operating expenses. Portola Pharmaceuticals expects the GAAP operating expenses to be $355 million–$365.0 million. Previously, the company expected the GAAP operating expenses to be $390 million–$430.0 million.