Understanding Strongbridge’s Newly Added Risk Factor

Strongbridge Biopharma (SBBP) is a biopharmaceutical firm focused on the research and commercialization of medicines for rare diseases.

Let’s take a look at Strongbridge’s latest financial performance and risk factors. (See Strongbridge stock charts on TipRanks)

Strongbridge’s Financial Performance

Strongbridge reported a 28% year-over-year gain in revenue in Q2. Total revenues came in at $10 million, driven by strong demand for KEVEYIS (dichlorphenamide).

The company’s GAAP net loss was $13.2 million, an improvement over the loss of $17.3 million from the year-ago quarter.

Strongbridge CEO John H. Johnson said, “Given our strong first half performance, we expect to meet, or potentially exceed, the higher end of our full-year 2021 KEVEYIS revenue guidance of $34 million to $36 million.”

Strongbridge Risk Factors

According to the new TipRanks Risk Factors tool, Strongbridge’s main risk category is Finance & Corporate, which accounts for 36% of the total 28 risks identified.

Since June, Strongbridge has updated its risk profile to introduce one new risk factor under the Finance & Corporate category.

The new risk factor is related to Strongbridge being acquired by Xeris Pharmaceuticals, Inc. (XERS) for approximately $267 million.

Strongbridge highlights that it could face a number of risks relating to the Xeris transaction. The company may be unable to get the necessary approvals for the transaction, and as a result, the deal will not be completed. Furthermore, Strongbridge warns investors that if the merger is completed, there may be challenges with the company’s integration.

The overall sector average for the Finance & Corporate risk factor category is 28.9%.