Why Horizon Pharma Inc. Shares Soared Again
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company Horizon Pharma Inc. surged 32% today after acquiring the U.S. rights to arthritis treatment Vimovo from AstraZeneca for $35 million.
So what: AstraZeneca generated $5 million in Vimovo U.S. sales in the third quarter alone, so the acquisition certainly serves as a positive catalyst in Horizon's path to profitability. Of course, shares of Pozen , which originally licensed the drug to AstraZeneca in 2010, also soared on the news as it will be receiving a 10% royalty from Horizon as part of the deal.
Now what: Horizon management now expects to be profitable in 2014 on a non GAAP basis, with full-year revenue in the range of $190 million-$205 million.
"The acquisition of VIMOVO is a major step forward in our strategy to leverage our business model and maximize our commercial infrastructure and we expect it to create significant value for our shareholders," said Chairman and CEO Timothy Walbert. "We anticipate that this transaction will significantly increase our revenues and accelerate the Company to profitable operations."
So while the stock is certainly too hot and speculative for average investors, Horizon's newly bolstered growth prospects might be something for biotech-savvy Fools to look into.
More reliable ways to wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
The article Why Horizon Pharma Inc. Shares Soared Again originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.