Why Portola Pharmaceuticals Rose 8.09% on January 4

Stock performance

On January 4, Portola Pharmaceuticals stock closed at $19.38, an 8.09% increase from its prior close of $17.93 on January 3. On December 31, 2018, Portola Pharmaceuticals stock price grew ~14.22% to reach $19.52 from its prior close of $17.09 on December 28.

The stock price on January 4 was ~65% below its 52-week high of $55.48 on January 29, 2018. The company hit its 52-week low of $14.81 on December 24, 2018.

Why Portola Pharmaceuticals Rose 8.09% on January 4

Recent developments

On December 2018, the US FDA (Food and Drug Administration) approved Portola Pharmaceuticals’ PAS (prior approval supplement) for large-scale, second-generation Andexxa. The approval enables a wide commercial launch of Andexxa in the US market.

In May 2018, the FDA approved Andexxa under the accelerated approval pathway. The FDA also granted Andexxa an orphan drug designation and a breakthrough therapy designation. The approval is expected to boost the commercial launch of Andexxa in the US market, which in turn could significantly boost the revenue growth of Portola in 2019.

Financials in a nutshell

In the first nine months of 2018, Portola Pharmaceuticals’ net revenues grew ~95% YoY to reach $24.8 million from $12.7 million. Wall Street analysts estimate that Portola Pharmaceuticals will generate net revenues of $35.70 million, which represents ~58.35% YoY growth. The revenue growth of Portola Pharmaceuticals (PTLA) could boost the SPDR S&P Biotech ETF (XBI). The company makes up about ~1.31% of XBI’s total portfolio holdings.

In the first nine months of 2018, Portola reported net income and EPS of -$261.7 million and -$3.97, respectively, compared to -$194.3 million and -$3.38 in the same period the prior year.

Wall Street analysts estimate that Portola Pharmaceuticals will report net income and EPS of -$333.57 million and -$5.03, respectively, in fiscal 2018.

Analysts’ recommendations

Of the seven analysts tracking Portola Pharmaceuticals in January 2019, three of them recommended a “strong buy,” two analysts recommended a “buy” rating, and two analysts recommended a “hold” rating.

On January 7, 2019, the company had a consensus 12-month target price of $35.83, which represents a ~84.88% return on investment over the next 12 months.