A series of pharmaceutical companies are set to release their respective earnings report before the end of the week. Amid the hype of earnings season, the majority of the pharma stocks traded at the bottom as the market assessed the first draft of Trump’s proposed budget which leaves a significant impact on the pharma industry.
Trump on Pharmaceutical Industry
After President Trump took the office in January, he initiated the price reduction of drugs as he intends to lower the regulation and put back the production in the United States. The specifics of the plan have narrowed after the White House disclosed the first draft of the Trump’s proposed budget for 2018 recently.
The new administration will likely keep the intention of Trump to speed up the drug approval processes as he lowers the regulations under the Food and Drug Administration (FDA). However, the medical product user fees paid by pharma and biotech companies will be increased to $2 billion.
According to the Office of Management and Budget, the industries that benefit from FDA’s approval can and should pay for their share. “To complement the increase in medical product user fees, the Budget includes a package of administrative actions designed to achieve regulatory efficiency and speed the development of safe and effective medical products.”
Meanwhile, a set of pharmaceutical companies is set to release their respective quarterly earnings these coming days.
Ascendis Pharma A/S (ASND) - After the closing bell on Wednesday, the clinical biopharmaceutical company will report its earnings for the fiscal quarter ending December 2016. Analysts raised their consensus earnings per share forecast from $0.54 in the same quarter last year to $0.61 for this period. The third quarterly financial data of the company disappointed the market, with revenue declining from EUR 2,117,000 to EUR 1,169,000.
Previously, the stock traded 0.54 percent lower to $29.41 with a market capitalization of $950.81 million. The stock opened at 29.48, with a session high of 30.00 and a session low of 29.36. Ascendis Pharma is engaged in developing developing TransCon human growth hormone to treat growth hormone deficiency and other prodrug therapies to treat unmet medical needs.
BioPharmX Corporation (BPMX) – Ahead of the upcoming earnings result, the Menlo Park, California based pharmaceutical corporation lost 4.13 percent to $0.50 on Monday’s overnight session. The stock had $32.36 million of market capitalization as it remained below $0.60 in the previous sessions.
BioPhamX is set to deliver its earnings in the fiscal quarter ending January 2017 after the market closed on Thursday.
During the third quarter report of the Company, it showed a 65 percent increase of revenue to $33,000, coming from higher spending for the company's acne drug clinical trials. For this quarter, analysts are expecting an EPS of $-0.09 compared to the reported EPS of $-0.19 in the same quarter last year.
Galmed Pharmaceuticals Ltd. (GLMD) - Also on Thursday, the clinical-stage biopharmaceutical company based in Israel will report its financial data in the fiscal quarter ending December 2016 before the market opens. Afterwards, the Company will hold a conference call and webcast to discuss financial results and to update its clinical programs. Analysts are betting for EPS of $-0.29, no changes to the same quarter last year.
The stock is currently performing at 43.30 percent on the year and 22.38 percent over the past month. With $61.11 million market capitalization, the stock lost 0.60 percent to trade at $5.00 previously. The stock was in the range of 4.6 to 5.4, with no room for potential upside. After the overnight session on Monday, the stock received a consensus rating of Buy.
NovaBay Pharmaceuticals, Inc. (NBY) – Unlike most of the pharmaceutical companies, NovaBay traded 5.26 percent higher to $4.00. The stock opened at 3.85 with a session high of 4.00 and a session low of 3.75. It has a market capitalization of $57.51 million, days before its earnings data on Thursday.
During the last quarter, the Company had total sales of $3.4 million and had an estimated annualized run rate of $12 million. It also implemented a warrant exercise that boosted the Company’s cash position to $9.4 million, the highest level in three years.
For this fiscal Quarter ending Dec 2016, the consensus EPS estimate is $-0.12, away from the EPS of $-1.26 last year. The Company is also anticipated to disclose the impact of its positive adjusted cash flow from operations in December 2016.
Novabay will conduct its fourth quarter and full year conference call after the market closed to discuss the financial results and provide a Company update. The Company is focused on commercializing its prescription Avenova lid and lash hygiene product for the domestic eye care market.
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