AKEBIA THERAPEUTICS Announces Financial Results for Fourth Quarter of FY2022

Earnings Overview

AKEBIA THERAPEUTICS ($NASDAQ:AKBA) announced their financial results for the fourth quarter of FY2022, ending on December 31, 2022, on March 9 2023. Total revenue for the quarter was up year-over-year by 89.3%, amounting to USD -7.5 million. On the other hand, net income decreased 7.4% compared to the same period of the previous year, with a figure of USD 55.2 million.

Transcripts Simplified

At this time, all participants are in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. Operator instructions. I would now like to turn the conference over to Ms. Ashley Otero, Head of Investor Relations at Akebia Therapeutics. Please go ahead, Ms. Otero. Thank you, Operator, and good morning everyone. Joining me on the call today are John Butler, President and Chief Executive Officer; Bill Barrios, Chief Financial Officer; and Mike Yuen, our Chief Medical Officer. John will begin today’s call with an overview of Akebia’s recent achievements and strategic priorities. Bill will then provide an overview of the financial results for the second quarter.

And Mike will provide a brief update on our development programs. After that, we will open up the call for your questions. These statements may include, but are not limited to, statements regarding our clinical and development programs, regulatory strategies, commercialization plans, financial projections and other statements regarding our expectations or beliefs concerning future events. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or implied. Please refer to the documents Akebia files from time to time with the SEC including our most recent quarterly report on Form 10-Q and our annual report on Form 10-K for a discussion of certain risks and uncertainties that could cause actual results to differ materially from those projected or implied by our forward-looking statements. Akebia assumes no responsibilities to update any forward-looking statement made on today’s call as a result of new information or future events or developments. With that said, I’ll now turn the call over to John.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Akebia Therapeutics. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Akebia Therapeutics. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Akebia Therapeutics. More…

Key Ratios Snapshot

Some of the financial key ratios for Akebia Therapeutics are shown below. More…

Stock Price

On the day of the announcement, the stock opened at $0.8 and closed at $0.8, plunging by 22.3% from its last closing price of 1.0. This reflects a decrease in operating expenses as the company works to become more efficient and cost-effective. For the future, AKEBIA intends to continue to pursue strategies that will support long-term growth, such as investments in research and development, as well as continuing to expand market share globally.

In addition, the company plans to expand its portfolio of drug candidates for treatment of iron deficient anemia and other related disorders. The company is taking steps to become more efficient and cost-effective, while also expanding its portfolio of drug candidates. It remains to be seen how these efforts will pay off in the long run. Live Quote…

Analysis

GoodWhale recently conducted an analysis of AKEBIA THERAPEUTICS’s wellbeing. According to our Star Chart, AKEBIA THERAPEUTICS is classified as ‘rhino’, which we conclude is a company that has achieved moderate revenue or earnings growth. This type of company may attract a variety of investors, including long-term value investors, seeking to benefit from the stability and potential growth of the company. AKEBIA THERAPEUTICS has a low health score of 2/10, considering its cash flows and debt. This means that it is less likely to be able to pay off debt and fund future operations. We deem AKEBIA THERAPEUTICS to be strong in medium growth, weak in assets, dividend and profitability. As such, potential investors should exercise caution when considering AKEBIA THERAPEUTICS as an investment opportunity. More…

Peers

It engages in research, development, and commercialization of small molecule therapeutics that promote kidney health. Akebia has several competitors in the market, including Nascent Biotech Inc, MEI Pharma Inc, and Albireo Pharma Inc. All these companies are working hard to develop innovative treatments for kidney diseases and other related conditions.

– Nascent Biotech Inc ($OTCPK:NBIO)

Nascent Biotech Inc is a biotechnology company that specializes in the development of novel gene therapies for cancer and other diseases. As of 2023, the company has a market cap of 13.69M and a Return on Equity of 65.07%. The market cap of Nascent Biotech Inc represents the total value of its outstanding shares, which reflects investor confidence in its products and services. The high ROE suggests that the company is making efficient use of its shareholders’ equity to generate profits and reward shareholders with dividends.

– MEI Pharma Inc ($NASDAQ:MEIP)

MEI Pharma Inc is a pharmaceutical company engaged in the development and commercialization of treatments for cancer. The company’s market cap as of 2023 was 30.56M. The Return on Equity (ROE) for the company was -68.64%. This indicates that the company has been experiencing a decrease in its shareholder equity, indicating that it is not generating enough revenue to cover its liabilities. Despite this, MEI Pharma Inc continues to pursue innovative strategies in its attempt to develop treatments for cancer.

Summary

Akebia Therapeutics reported their financial results for the fourth quarter of FY2022, ending on December 31 2022, on March 9 2023. Total revenue increased 89.3% from the same period last year, but net income was down 7.4%. The stock price moved down the same day. This may be concerning to investors, as it could suggest that the company’s strong revenue growth is not being translated into profit. Investors should assess Akebia Therapeutics’ balance sheet and competitive position to determine if further investments are wise.

Additionally, they should monitor the company’s performance in the coming quarters to see if their revenue growth continues and translates into profits.