OPTN Stock Price Increases Over 10% Pre-Market: Why It Happened

By Amit Chowdhry ● March 3, 2021
  • The stock price of OptiNose Inc (NASDAQ: OPTN) is trading at over 10% pre-market. This is why it happened.

The stock price of OptiNose Inc (NASDAQ: OPTN) – a pharmaceutical company focused on patients treated by ear, nose, and throat (ENT) and allergy specialists – is trading at over 10% pre-market. Investors appear to be responding to the company announcing its fourth quarter and full-year 2020 financial results.

Fourth Quarter Financial Results:

– ThecCompany generated $15.6 million and $48.4 million of XHANCE net revenue during the three-month and twelve-month periods ended December 31, 2020, respectively. In addition, the Company generated $0.8 million of licensing revenue during the three and twelve-month periods ended December 31, 2020. Total revenues for the three and twelve-month periods ended December 31, 2020 were $16.4 million and $49.2 million.

– For the 3-month and 12-month periods ended December 31, 2020, research and development expenses were $6.4 million and $23.4 million, respectively. Selling, general and administrative expenses were $28.1 million and $105.4 million during the three-month and twelve-month periods ended December 31, 2020, respectively. And the net loss for the three-month period ended December 31, 2020 was $23.9 million, or $0.46 per share (basic and diluted). The net loss for the twelve-month period ended December 31, 2020 was $99.8 million, or $2.07 per share (basic and diluted).

– The company had cash and cash equivalents of $144.2 million as of December 31, 2020. In December 2020, the Company received $20 million of cash following the issuance of the Third Delayed Draw Notes under its existing Note Purchase Agreement with Pharmakon. The $20 million of cash is included in the Company’s cash balance of $144.2 million as of December 31, 2020.

– The company expects XHANCE net revenues for the full year of 2020 to be at least $80 million. This includes the company’s expectation that first quarter 2021 XHANCE net revenue will decrease compared to fourth quarter 2020. And the primary driver of the sequential decrease to revenue is the Company’s expectation that XHANCE average net revenue per prescription for the first quarter of 2021 will be between $120 and $140, due to typical early-year effects on price and volume related to patient insurance that the company believes are common for chronic treatments that derive a significant proportion of total prescriptions from refills. Plus the company expects XHANCE average net revenue per prescription to improve substantially for the remainder of 2021. In addition, the company expects full year 2021 XHANCE net revenue per prescription to increase compared to full year 2020 XHANCE net revenue per prescription of $185.

KEY QUOTES:

“I am proud of how the team at Optinose responded to the market disruptions created by the global pandemic, enabling us to deliver 70% year-over-year growth of prescriptions for XHANCE. As a launch-stage product, new patient starts are a critical driver of future success. Following pandemic-related disruption in second quarter, we achieved consecutive all-time highs for new prescriptions of XHANCE in third and fourth quarter 2020. Looking ahead, we believe we expect sustained or increased XHANCE growth in 2021. Our expectations for first quarter 2021 include typical early-year effects on price and volume related to patient insurance that we believe are common for chronic treatments that derive a significant proportion of total prescriptions from refills, and for full year 2021 we expect XHANCE net revenue to be at least $80 million.”

— CEO Peter Miller

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.