Radius Health (RDUS) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Radius Health (NASDAQ:RDUS) from a hold rating to a sell rating in a report issued on Thursday.

According to Zacks, “Radius got  a boost with the approval of lead drug Tymlos. Sales of Tymlos continue to gain traction. Total prescriptions accounted for 22% of total U.S. anabolic osteoporosis market (based on Patient Months on Therapy, TRx PMOT) in the quarter. Tymlos is expected to be covered for approximately 274 million insured lives, representing approximately 95% of U.S. commercial and 64% of Medicare insured lives effective Jan 1, 2019. However, Radius suffered a setback when the CHMP communicated a negative trend vote for the MAA following a re-examination procedure of lead drug Tymlos. Thereafter, the CHMP communicated that it maintained its negative opinion on the MAA at its formal final vote. While the market for postmenopausal osteoporosis provides significant commercial potential, it is pretty crowded given the presence of products like Amgen’s Prolia and Lilly’s Forteo. Shares have underperformed the industry in the last six months.”

Other analysts also recently issued reports about the stock. BidaskClub raised shares of Radius Health from a sell rating to a hold rating in a report on Wednesday, January 2nd. Cowen reaffirmed a hold rating on shares of Radius Health in a report on Thursday, October 18th. JPMorgan Chase & Co. decreased their price objective on shares of Radius Health from $59.00 to $52.00 and set an overweight rating on the stock in a report on Friday, November 2nd. Finally, ValuEngine downgraded shares of Radius Health from a hold rating to a sell rating in a report on Wednesday, January 2nd. Two analysts have rated the stock with a sell rating, four have given a hold rating and five have assigned a buy rating to the company. The company currently has an average rating of Hold and a consensus target price of $44.50.

Shares of NASDAQ RDUS opened at $16.44 on Thursday. Radius Health has a 1 year low of $12.81 and a 1 year high of $41.16. The firm has a market cap of $755.50 million, a P/E ratio of -2.83 and a beta of 0.94. The company has a current ratio of 5.50, a quick ratio of 5.39 and a debt-to-equity ratio of 1.85.

Radius Health (NASDAQ:RDUS) last announced its quarterly earnings results on Thursday, November 1st. The biopharmaceutical company reported ($1.09) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($1.26) by $0.17. Radius Health had a negative net margin of 346.67% and a negative return on equity of 140.79%. The firm had revenue of $27.70 million for the quarter, compared to the consensus estimate of $26.00 million. During the same period in the prior year, the firm posted ($1.31) earnings per share. The firm’s quarterly revenue was up 105.2% compared to the same quarter last year. On average, research analysts anticipate that Radius Health will post -5.17 EPS for the current year.

In related news, VP Joseph Francis Kelly acquired 3,000 shares of the firm’s stock in a transaction on Monday, December 17th. The shares were acquired at an average cost of $15.71 per share, with a total value of $47,130.00. Following the completion of the acquisition, the vice president now directly owns 3,000 shares in the company, valued at approximately $47,130. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, major shareholder Growth N. V. Biotech acquired 60,000 shares of the firm’s stock in a transaction on Friday, December 14th. The shares were bought at an average cost of $15.64 per share, for a total transaction of $938,400.00. Following the completion of the acquisition, the insider now owns 6,650,276 shares of the company’s stock, valued at $104,010,316.64. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 123,000 shares of company stock worth $1,854,330. Insiders own 3.42% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of RDUS. Algert Global LLC acquired a new stake in shares of Radius Health in the third quarter valued at about $401,000. Swiss National Bank raised its position in shares of Radius Health by 15.8% in the second quarter. Swiss National Bank now owns 66,000 shares of the biopharmaceutical company’s stock valued at $1,945,000 after buying an additional 9,000 shares during the last quarter. Voya Investment Management LLC raised its position in shares of Radius Health by 4.3% in the second quarter. Voya Investment Management LLC now owns 731,818 shares of the biopharmaceutical company’s stock valued at $21,567,000 after buying an additional 30,003 shares during the last quarter. BB Biotech AG raised its position in shares of Radius Health by 6.3% in the third quarter. BB Biotech AG now owns 6,590,276 shares of the biopharmaceutical company’s stock valued at $117,307,000 after buying an additional 389,363 shares during the last quarter. Finally, Alps Advisors Inc. raised its position in shares of Radius Health by 22.0% in the third quarter. Alps Advisors Inc. now owns 80,476 shares of the biopharmaceutical company’s stock valued at $1,432,000 after buying an additional 14,503 shares during the last quarter.

About Radius Health

Radius Health, Inc, a biopharmaceutical company, develops and commercializes endocrine therapeutics in the areas of osteoporosis and oncology. The company markets TYMLOS for the treatment of postmenopausal women with osteoporosis. It is also developing abaloparatide transdermal patch, a short-wear-time patch formulation of abaloparatide that is in Phase III clinical trial to treat postmenopausal women with osteoporosis; RAD1901, a selective estrogen receptor down-regulator/degrader, which is in Phase I clinical trial for the treatment of metastatic breast cancer; and RAD140, a non-steroidal selective androgen receptor modulator that is in Phase I clinical trial to treat breast cancer.

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