Horizon Therapeutics Public Limited Company (HZNP) Bundle
A Brief History of Horizon Therapeutics
Horizon Therapeutics Public Limited Company (NASDAQ: HZNP) has established itself as a notable player in the biopharmaceutical industry, particularly in the development of medicines for rare diseases. Founded in 2008, the company has focused on providing innovative treatments that address unmet medical needs.
Recent Financial Performance
As of June 30, 2023, Horizon Therapeutics reported a total revenue of $1.03 billion for the first half of 2023, reflecting a growth compared to $935.9 million in the same period in 2022. This growth was primarily driven by increased sales of its flagship products, TEPEZZA and KRYSTEXXA.
| Metric | 2023 (H1) | 2022 (H1) |
|---|---|---|
| Total Revenue | $1.03 billion | $935.9 million |
| Net Income | $118.4 million | $90.1 million |
| Operating Income | $264.3 million | $212.5 million |
Product Portfolio and Developments
Horizon Therapeutics has several key products that have significantly contributed to its revenue. TEPEZZA, an infusion treatment for thyroid eye disease, remains a cornerstone of its growth strategy. In 2022, TEPEZZA generated approximately $776 million in net sales, marking a 90% increase year-over-year. Similarly, KRYSTEXXA, used for chronic gout, saw substantial growth, with sales reaching $320 million in 2022.
Debt and Financial Obligations
As of June 30, 2023, Horizon Therapeutics had total long-term debt of approximately $2.56 billion. The breakdown of this debt is as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan Facility due 2028 | $1,564,000 |
| Term Loan Facility due 2026 | $418,026 |
| Senior Notes due 2027 | $600,000 |
| Total Face Value | $2,582,026 |
Research and Development Investments
Horizon Therapeutics has committed significant resources to R&D, with total in-process research and development assets valued at $810 million as of June 30, 2023. This includes investments in clinical trials for new therapies, including daxdilimab for systemic lupus erythematosus, which is currently in Phase 2 trials.
Market Position and Future Outlook
Looking ahead, Horizon Therapeutics is poised to expand its market presence through strategic partnerships and continued innovation in its product offerings. The company’s robust pipeline and commitment to rare disease treatments position it well for future growth, particularly as it seeks to enhance shareholder value through effective management and operational efficiency.
As of June 30, 2023, Horizon Therapeutics had cash and cash equivalents totaling approximately $2.5 billion, providing a solid financial foundation to support ongoing operations and strategic initiatives.
A Who Owns Horizon Therapeutics Public Limited Company (HZNP)
Ownership Structure
As of 2024, Horizon Therapeutics Public Limited Company (HZNP) has a diversified ownership structure with institutional investors holding a significant portion of its shares. The latest data indicates the following breakdown:
| Owner Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 89.2% | 203,000,000 |
| Insider Ownership | 1.5% | 3,500,000 |
| Retail Investors | 9.3% | 21,000,000 |
Major Institutional Shareholders
The largest institutional shareholders of Horizon Therapeutics as of 2024 include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 45,000,000 | 19.6% |
| BlackRock, Inc. | 42,000,000 | 18.3% |
| State Street Corporation | 30,000,000 | 13.1% |
| Fidelity Investments | 25,000,000 | 10.9% |
| Wellington Management Company, LLP | 20,000,000 | 8.7% |
Insider Ownership
Insider ownership remains modest. Key executives and board members own a combined total of approximately 1.5% of the company:
| Name | Position | Shares Owned |
|---|---|---|
| Timothy P. Walbert | Chairman & CEO | 1,200,000 |
| John R. McKew | Chief Financial Officer | 500,000 |
| Jill A. Dyer | Chief Operating Officer | 300,000 |
Shareholder Voting Rights
Horizon Therapeutics follows a standard corporate governance structure where all shareholders are entitled to one vote per share. This structure allows institutional shareholders, who hold the majority of shares, significant influence over company decisions.
Recent Changes in Ownership
In the past year, there have been notable shifts in ownership, particularly among institutional investors:
| Institution | Change in Ownership | Current Holdings |
|---|---|---|
| Vanguard Group | +3.2% | 45,000,000 |
| BlackRock | +2.5% | 42,000,000 |
| State Street | -1.0% | 30,000,000 |
Market Capitalization and Stock Performance
As of early 2024, Horizon Therapeutics has a market capitalization of approximately $4.5 billion. The stock has shown resilience with a 12-month performance increase of around 15%, reflecting investor confidence in the company's growth prospects.
| Metric | Value |
|---|---|
| Market Capitalization | $4.5 billion |
| 12-Month Stock Performance | +15% |
| P/E Ratio | 20.5 |
Horizon Therapeutics Public Limited Company (HZNP) Mission Statement
Overview
Horizon Therapeutics is a global biotechnology company dedicated to the discovery, development, and commercialization of medicines that address critical needs for people impacted by rare, autoimmune, and severe inflammatory diseases. The company emphasizes the integration of scientific expertise with compassion to transform lives.
Mission Statement
The mission of Horizon Therapeutics is to deliver innovative medicines that improve patients' lives and to conduct business in a socially responsible manner. The company aims to create value for patients, employees, and shareholders through a commitment to excellence in all aspects of its operations.
Core Values
- Patient-Centricity: Prioritizing the needs of patients in every decision made.
- Integrity: Conducting business with honesty and transparency.
- Innovation: Fostering a culture that encourages creativity and scientific discovery.
- Collaboration: Working together with stakeholders to achieve common goals.
- Accountability: Taking responsibility for actions and outcomes.
Financial Performance
As of June 30, 2023, Horizon Therapeutics reported the following financial metrics:
| Financial Metric | Value (in thousands) |
|---|---|
| Net Sales | $1,777,018 |
| Gross Profit | $1,348,497 |
| Operating Income | $178,835 |
| Net Income | $181,755 |
| Research and Development Expenses | $284,183 |
| Selling, General and Administrative Expenses | $887,479 |
| Total Assets | $9,298,741 |
| Total Liabilities | $3,070,101 |
| Total Shareholders' Equity | $5,310,959 |
Key Products
Horizon Therapeutics' product portfolio is primarily focused on treatments for rare and autoimmune diseases. Key products include:
| Product | Net Sales (6 months ended June 30, 2023, in thousands) |
|---|---|
| TEPEZZA | $850,845 |
| KRYSTEXXA | $431,277 |
| RAVICTI | $178,672 |
| UPLIZNA | $121,913 |
| PROCYSBI | $103,608 |
| ACTIMMUNE | $58,160 |
| PENNSAID 2% | $16,107 |
| RAYOS | $12,989 |
Market Position and Strategy
Horizon Therapeutics aims to expand its market presence through strategic partnerships, innovative research, and a focus on patient access. The company's growth strategy includes:
- Increasing the sales force to enhance market reach.
- Investing in research and development to expand the product pipeline.
- Enhancing patient access programs to support therapy adherence.
- Implementing direct-to-consumer advertising to boost awareness.
Recent Developments
In 2023, Horizon Therapeutics has focused on expanding its product offerings and improving patient access through updated healthcare policies. The company has achieved a 50% year-over-year increase in the number of prescribing physicians for TEPEZZA due to its strategic initiatives.
As of June 30, 2023, the company’s net income decreased by 31% compared to the previous year, reflecting ongoing challenges in the market, including competition and pricing pressures. The commitment to innovation and patient care remains a central focus as Horizon Therapeutics navigates these challenges.
How Horizon Therapeutics Public Limited Company (HZNP) Works
Overview of Business Model
Horizon Therapeutics focuses on the development and commercialization of medicines for rare and rheumatic diseases. The company operates primarily through a portfolio of innovative therapies aimed at addressing unmet medical needs. Their key products include TEPEZZA, KRYSTEXXA, UPLIZNA, RAVICTI, and others.
Financial Performance
For the six months ended June 30, 2023, Horizon Therapeutics reported net sales of $1,777 million, an increase of 1% from $1,762 million in the same period of 2022. The gross profit for this period was $1,348 million, with a gross margin of approximately 76%.
The following table summarizes the net sales by product for the six months ended June 30, 2023 and 2022:
| Product | Net Sales 2023 (in thousands) | Net Sales 2022 (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| TEPEZZA | 850,845 | 981,265 | (130,420) | (13) |
| KRYSTEXXA | 431,277 | 308,459 | 122,818 | 40 |
| RAVICTI | 178,672 | 153,979 | 24,693 | 16 |
| UPLIZNA | 121,913 | 69,075 | 52,838 | 76 |
| PENNSAID 2% | 16,107 | 58,954 | (42,847) | (73) |
| RAYOS | 12,989 | 24,637 | (11,648) | (47) |
| PROCYSBI | 103,608 | 97,277 | 6,331 | 7 |
Research and Development Expenses
Research and development (R&D) expenditures increased by 38% to $284 million for the six months ended June 30, 2023, compared to $206 million in the same period of 2022. This increase is primarily attributed to higher clinical trial costs and employee-related expenses.
Operating Expenses
Total operating expenses for the first half of 2023 were $1,170 million, up from $1,034 million in 2022, reflecting a 13% increase. This comprises:
- Research and Development: $284 million
- Selling, General and Administrative: $887 million
Income Statement Highlights
The net income for the six months ended June 30, 2023, was $182 million, down from $265 million in 2022, marking a 31% decrease. The operating income was $179 million, compared to $283 million in the previous year.
The following table summarizes key income statement figures for the six months ended June 30, 2023 and 2022:
| Item | 2023 (in thousands) | 2022 (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Net Sales | 1,777,018 | 1,761,656 | 15,362 | 1 |
| Cost of Goods Sold | 428,521 | 445,278 | (16,757) | (4) |
| Gross Profit | 1,348,497 | 1,316,378 | 32,119 | 2 |
| Operating Expenses | 1,169,662 | 1,033,504 | 136,158 | 13 |
| Operating Income | 178,835 | 282,874 | (104,039) | (37) |
| Net Income | 181,755 | 265,235 | (83,480) | (31) |
Cash Flow Summary
For the six months ended June 30, 2023, Horizon Therapeutics reported cash provided by operating activities of $248 million, down from $465 million in 2022. Cash used in investing activities was $62 million, with net cash used in financing activities amounting to $79 million.
The following table highlights the cash flow summary for the six months ended June 30, 2023 and 2022:
| Cash Flow Activity | 2023 (in thousands) | 2022 (in thousands) |
|---|---|---|
| Operating Activities | 247,789 | 464,987 |
| Investing Activities | (61,777) | (52,905) |
| Financing Activities | (79,094) | (92,621) |
Balance Sheet Highlights
As of June 30, 2023, Horizon Therapeutics reported total assets of $9,299 million, total liabilities of $3,988 million, and total shareholders' equity of $5,311 million.
The following table summarizes key balance sheet figures as of June 30, 2023:
| Item | 2023 (in thousands) |
|---|---|
| Total Assets | 9,298,741 |
| Total Liabilities | 3,987,782 |
| Total Shareholders' Equity | 5,310,959 |
How Horizon Therapeutics Public Limited Company (HZNP) Makes Money
Revenue Sources
Horizon Therapeutics generates revenue primarily through the commercialization of its specialty medicines. As of June 30, 2023, the company reported net sales of $944.9 million for the three months ended June 30, 2023, compared to $876.4 million for the same period in 2022, marking an increase of 8% year-over-year.
| Medicine | Net Sales (Q2 2023, in thousands) | Net Sales (Q2 2022, in thousands) | Change ($, in thousands) | Change (%) |
|---|---|---|---|---|
| TEPEZZA | 445,528 | 479,814 | (34,286) | (7) |
| KRYSTEXXA | 244,296 | 167,755 | 76,541 | 46 |
| RAVICTI | 88,351 | 75,722 | 12,629 | 17 |
| UPLIZNA | 68,084 | 38,598 | 29,486 | 76 |
| PROCYSBI | 53,145 | 47,706 | 5,439 | 11 |
| PENNSAID 2% | 6,913 | 23,586 | (16,673) | (71) |
| RAYOS | 8,012 | 11,150 | (3,138) | (28) |
| Total | 944,959 | 876,411 | 68,548 | 8 |
Key Products
The key products contributing to Horizon's revenue include:
- TEPEZZA: A treatment for thyroid eye disease, which had net sales of $445.5 million in Q2 2023.
- KRYSTEXXA: Used for chronic gout, generating $244.3 million in net sales during the same period.
- RAVICTI: A treatment for urea cycle disorders, with net sales of $88.4 million.
- UPLIZNA: For neuromyelitis optica spectrum disorder, contributing $68.1 million in sales.
Operating Expenses
Horizon Therapeutics reported total operating expenses of $582.2 million for the three months ending June 30, 2023, compared to $557.6 million in the same period in 2022.
| Expense Type | Q2 2023 (in thousands) | Q2 2022 (in thousands) | Change ($, in thousands) | Change (%) |
|---|---|---|---|---|
| Research and Development | 150,035 | 103,246 | 46,789 | 45 |
| Selling, General and Administrative | 434,125 | 398,221 | 35,904 | 9 |
| Total Operating Expenses | 582,160 | 557,638 | 24,522 | 4 |
Profitability
Horizon Therapeutics achieved an operating income of $142.8 million in Q2 2023, up from $88.6 million in Q2 2022, reflecting a growth of 61%. The net income for the same period was $127.1 million, an increase of 108% compared to $61.0 million in Q2 2022.
Future Projections
For the full year 2023, Horizon anticipates continued growth in net sales, largely driven by the expansion of KRYSTEXXA and UPLIZNA. The company projects future amortization expenses as follows:
| Year | Amortization Expense (in thousands) |
|---|---|
| 2023 (July to December) | 181,164 |
| 2024 | 359,426 |
| 2025 | 359,426 |
| 2026 | 304,164 |
| 2027 | 253,507 |
| Thereafter | 1,028,878 |
| Total | 2,486,565 |
Cash Flow and Liquidity
As of June 30, 2023, Horizon Therapeutics had cash and cash equivalents totaling $2.5 billion, with total liabilities amounting to $3.1 billion. The company’s long-term debt was $2.5 billion, with an undrawn revolving credit facility of $275 million available for general corporate purposes.
Market Risks
Horizon faces risks associated with reliance on wholesale distributors for sales in the United States. In Q2 2023, four wholesale distributors accounted for a significant portion of net sales, indicating potential vulnerabilities in the distribution chain.
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