Bioverativ Inc(NASDAQ: BIVV) stock rallied over 2.1% in the after-hours session on August 2nd, 2017 (Source: Google finance). Bioverativ reported a strong performance with revenues rising 37.5% yoy to $289.1 million in the Second quarter of 2017. Product revenues in the US surged 28.6% on a year-over-year basis while generated an 8.9% growth on a quarter-over-quarter basis. Product revenue outside the US rose 29.7% on a year-over-year basis and rose 9.9% on a quarter on quarter basis. ELOCTATE product surged 39.8% yoy during the quarter driven by the ongoing tapping of new patients as well as benefitted from patients switching from short-acting therapies. Rising shift to prophylactic treatment in hemophilia A also drove the product performance. Meanwhile, ALPROLIX revenue rose 11.7% yoy driven by patients moving from on-demand to prophylactic treatment even though there was strong competition in hemophilia B. But Collaboration revenue delivered an outstanding growth with revenues rising 366.7% on a yoy basis as Swedish Orphan Biovitrum AB (publ) (Sobi™) executed launches in its territories. Royalty and contract manufacturing revenues also enhanced during the second quarter of 2017.
Consequently, the GAAP operating margin reached 39.3% during the second quarter of 2017 while Non-GAAP operating margin reached 48.8%. GAAP earnings per share rose 20.3% yoy to $0.71 during the second quarter of 2017, while Non-GAAP earnings per share enhanced 72.5% yoy to $0.88. The group has a weighted average diluted share of 108.4 million and has a $137.4 million in cash and cash equivalents and $49.5 million in short-term debt as of June 2017.
But the group cut Research and development expenses by $16.2 million against the second quarter of 2016 and by $3.2 million against the first quarter of 2017
The group finished the acquisition of True North Therapeutics in June 2017 and paid an upfront consideration of $395.7 million plus assumed cash, through a combination of cash on hand and borrowings. With this acquisition, the group intends to enhance their position in rare blood disorders with BIVV009, a first-in-class product candidate to treat cold agglutinin disease, a chronic autoimmune hemolytic anemia with no approved therapies and a second molecule, BIVV020, a discovery-stage, follow-on monoclonal antibody with the potential for less-frequent dosing.
Moreover, USFDA accepted their Investigational New Drug (IND) application for BIVV001 (also known as rFVIIIFc-VWF-XTEN), aiming to extend protection from bleeds with prophylaxis dosing of once weekly or longer for people with hemophilia A. BIVV001 would leverage the group’s current Fc fusion technology by adding a region of von Willebrand factor and XTEN polypeptides to possibly extend its time in circulation.