Global Blood Therapeutics Q1 Earnings Miss Estimates On Disappointing Sales For Its Sickle-Cell Disease Drug

Global Blood Therapeutics Inc GBT reported a Q1 EPS loss of ($1.21) wider than the anticipated loss estimate of $1.01.
Q1 sales of $39.04 million well below the consensus of $43.00 million, all of which stemmed from sickle-cell disease drug, Oxbryta.
Revenues increased 177% Y/Y, but on a sequential basis, sales decreased 5%, driven primarily by lower inventory levels and a higher gross-to-net adjustment, partially offset by patient demand.
The company blamed the disappointing performance for Oxbryta on COVID-19. It said there were fewer interactions with healthcare providers and patients in the first quarter due to the increased number of cases of COVID-19 in the U.S. As a result, new prescriptions for Oxbryta weren't as high as anticipated.
However, the company thinks this is only a short-term problem. It expects that new prescription volume will increase and even top pre-COVID-19 levels in the future.
The company said that it's on track to kick off two pivotal late-stage studies of another sickle-cell disease drug, inclacumab, by mid-2021.
It also expects to soon submit for U.S. approval to expand the label for Oxbryta to include treating kids ages 4 to 11 who have sickle-cell disease.
Analyst reaction after the earnings:
- Piper Sandler lowered the Global Blood Therapeutics price target to $45 from $50 and kept a Neutral rating on the shares.
- The company reported Q1 Oxbryta revenue of $39M, a sequential decline that was "perhaps not unexpected" given prior guidance, Catanzaro tells investors in a research note. The analyst believes fiscal 2021 numbers likely need to come down further once again since the challenging commercial dynamics "could persist for Oxbryta in perpetuity."
- Roth Capital maintains Buy on GBT but lowered price target to $124 from $128.
- Canaccord Genuity maintains a Hold rating on the stock with a price target cut from $45 to $40.
Price Action: GBT shares are down 4.8% at $37.9 during the market trading session on the last check Thursday.

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Global Blood Therapeutics Q1 Earnings Miss Estimates On Disappointing Sales For Its Sickle-Cell Disease Drug

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