Horizon Therapeutics PLC (NASDAQ:HZNP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 08:00 am ET


Horizon Therapeutics PLC (NASDAQ:HZNP) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and thank you for standing by. Welcome to the Horizon Therapeutics plc Second Quarter 2020 Earnings Conference Call. As a reminder, today's conference call is being recorded.

I would now like to introduce Ms. Tina Ventura, Senior Vice President of Investor Relations.

Tina Ventura

Thank you, Sarah. Good morning, everyone, and thank you for joining us. On the call with me today are Tim Walbert, Chairman, President and Chief Executive Officer; Liz Thompson, Group Vice President, Clinical Development and External Search; Paul Hoelscher, Executive Vice President, Chief Financial Officer; Vikram Karnani, Executive Vice President and President International; Andy Pasternak, Executive Vice President, Chief Strategy Officer.

Tim will provide a high-level review of the business, our second quarter performance and our full year guidance that we increased this morning. Liz will then provide a review of our R&D programs, followed by Paul, who will discuss our financial performance and guidance in more detail. After closing remarks from Tim, we'll take your questions.

As a reminder, during today's call, we'll be making certain forward-looking statements, including statements about financial projections, our business strategy and the expected timing and impact of future events. Our actual results could differ materially due to a number of factors, including the extent and duration of the effects of COVID-19 as well as other factors outlined in our latest forms 10-K, 10-Q and any 8-Ks filed with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, and Horizon disclaims any obligation to update such statements.

In addition, on today's conference call, all non-GAAP financial measures will be used. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings press release and other filings from today that are available on our Investor website at www.horizontherapeutics.com.

I will now turn the call over to Tim.

Tim Walbert

Thank you, Tina, and good morning, everyone. We delivered fantastic results this quarter, driven by the continued outperformance of TEPEZZA, our medicine we launched earlier this year for Thyroid Eye Disease or TED.

We continue to hear from our stakeholders that TEPEZZA is meeting a significant and critical need for so many patients who've gone years without any FDA-approved options to treat this painful and vision-threatening, rare autoimmune disease.

Based on the significant TEPEZZA demand, we are increasing our full year 2020 TEPEZZA net sales guidance to more than $650 million, a substantial increase in the guidance of more than $200 million we announced last quarter. Additionally, based on the faster uptick we are seeing for the medicine as well as its broad indication, we're raising our TEPEZZA peak U.S. annual net sales estimate to more than $3 billion.

Driven by TEPEZZA, we're also increasing our 2020 total company net sales guidance by more than 30% to $1.85 billion to $1.9 billion. We're also raising our adjusted EBITDA guidance by approximately 60% to $725 million to $775 million. For perspective, our updated 2020 guidance is now in line with what sell-side analysts expect