NEW YORK (AP) — Shares of Santarus Inc. climbed Wednesday after the drugmaker posted strong second-quarter results and raised its financial forecasts for the year.
THE SPARK: Santarus reported stronger sales of its diabetes drug Glumetza and acid reflux drug Zegerid along with solid sales of its newest product, Uceris, a treatment for ulcerative colitis. Its net income was almost double what Wall Street expected. The company said Tuesday that it earned 31 cents per share in the second quarter, and revenue nearly doubled to $89.4 million.
Analysts expected earnings of 16 cents per share and $82.9 million in revenue, according to estimates compiled by FactSet.
THE BIG PICTURE: Santarus said Glumetza revenue grew 39 percent to $44.4 million. Zegerid sales more than doubled to $21.6 million after the company resumed promotional activity. It reported $16.2 million in sales of Uceris, which was approved in January. The drug is intended to put into remission the symptoms of ulcerative colitis, an inflammatory bowel disease.
Santarus now expects adjusted earnings of $1.21 to $1.26 per share in 2013 on $355 million to $360 million in revenue. Its prior guidance called for earnings of $1.03 to $1.15 per share and $330 million to $340 million in revenue.
THE ANALYSIS: Roth Capital Markets analyst Scott Henry said Uceris sales were stronger than he expected. Santarus got more revenue per prescription than he expected and stocking of the drug was also greater than he anticipated. Henry kept a "Buy" rating on Santarus shares with a price target of $27.
SHARE ACTION: Santarus shares rose $2.32, or 9.3 percent, to $27.19 in afternoon trading. The stock has more than doubled in value since ending 2012 at $10.98, and it has been trading at all-time highs over the last four months. The shares peaked at $28.10 on Wednesday. Shares of Santarus closed at $7.31 on Aug. 8, 2012.