Ascendis Pharma A/S (ASND) reported disappointing second-quarter earnings, missing analysts’ expectations for both sales and earnings. The company’s revenue for the quarter came in at $38.76 million (35.9 million euros), significantly lower than the consensus estimate of $92.7 million. This represents a decline from the 47.4 million euros reported in the same period last year. The shortfall was primarily attributed to a negative adjustment to prior periods’ sales deductions, totaling 27.1 million euros, with 19.5 million euros related to the three months ended March 31, 2024, and 7.6 million euros attributable to periods before January 1, 2024.
Ascendis also reported an EPS loss of $(2.06) or (1.91 euros), missing the consensus loss of $(1.56) and falling short of the loss of 2.16 euros reported in the previous year.
Skytrofa, Ascendis’ once-weekly pediatric growth hormone treatment, generated revenue of 26 million euros, a 27% decrease year over year. While the company experienced a 134% year-over-year volume growth, this was offset by the costs associated with expanding market access.
Yorvipath, Ascendis’ recently approved hypoparathyroidism drug, generated revenue of €5.2 million in the quarter. This reflects the first full quarter of commercial launch in Germany and Austria, along with initial revenue in international markets. The company expects initial revenue in France to begin in the fourth quarter of 2024.
In light of the disappointing performance, Ascendis has lowered its fiscal year 2024 sales guidance for Skytrofa to 220 million euros – 240 million euros, down from the previous guidance of 320 million euros to 340 million euros.
The company also entered into a capped synthetic royalty funding agreement with Royalty Pharma plc (RPRX) for Yorvipath. As part of this agreement, Ascendis received an upfront payment of $150 million in exchange for a 3% royalty on U.S. net sales of Yorvipath.
This royalty agreement will cease upon reaching a multiple of 2.0x or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2029.
Following the earnings release, ASND stock plummeted 15% to $114.50 during the pre-market session on Wednesday.
