Rare Disease-Focused Ascendis Pharma Stock Falls On Underwhelming Q2 Earnings, Guidance Cut

Tuesday, Ascendis Pharma A/S ASND reported second-quarter sales of $38.76 million (35.9 million euros), missing the consensus of $92.7 million, down from 47.4 million euros reported a year ago.

Results in the quarter were primarily impacted by a negative adjustment to prior periods' estimates and assumptions for sales deductions of 27.1 million euros, where 19.5 million euros and 7.6 million euros were attributable to the three months ended March 31, 2024, and periods before January 1, 2024, respectively.

Also Read: Ascendis’ Hypoparathyroidism Drug Scores FDA Approval As First and Only Treatment, Replacing Takeda’s Drug Discontinued Due To Supply Issues.

The company reported an EPS loss of $(2.06) or (1.91 euros), missing the consensus loss of $(1.56) and down from a loss of 2.16 euros a year ago.

Skytrofa, indicated as a once-weekly pediatric growth hormone treatment, generated revenue of 26 million euros, a 27% decrease year over year. The 134% year over year volume growth was offset by the cost associated with broader market access.

Recently approved hypoparathyroidism drug Yorvipath’s revenue totaled €5.2 million, reflecting the first full quarter of commercial launch in Germany and Austria as well as initial revenue in International Markets. Initial revenue in France is expected to start in the fourth quarter of 2024.

Guidance: Ascendis Pharma has lowered its fiscal year 2024 sales guidance for Skytrofa to 220 million euros – 240 million euros from prior guidance of 320 million euros to 340 million euros.

Concurrently, the company entered into a capped synthetic royalty funding agreement based on U.S. net sales of Yorvipath with Royalty Pharma plc RPRX.

Under the terms of the agreement, Ascendis receives an upfront payment of $150 million in exchange for a 3% royalty on U.S. net sales of Yorvipath. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 2.0x or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2029.

Price Action: ASND stock is down 15% at $114.50 during the premarket session at last check Wednesday.

Photo via Shutterstock

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