Benzinga | May 6, 2021 03:03PM EDT

Global Blood Therapeutics Q1 Earnings Miss Estimates On Disappointing Sales For Its Sickle-Cell Disease Drug

* Global Blood Therapeutics Inc (NASDAQ: GBT) reported a Q1 EPS loss of ($1.21) wider than the anticipated loss estimate of $1.01.

* Q1 sales of $39.04 million well below the consensus of $43.00 million, all of which stemmed from sickle-cell disease drug, Oxbryta.

* Revenues increased 177% Y/Y, but on a sequential basis, sales decreased 5%, driven primarily by lower inventory levels and a higher gross-to-net adjustment, partially offset by patient demand.

* The company blamed the disappointing performance for Oxbryta on COVID-19. It said there were fewer interactions with healthcare providers and patients in the first quarter due to the increased number of cases of COVID-19 in the U.S. As a result, new prescriptions for Oxbryta weren't as high as anticipated.

* However, the company thinks this is only a short-term problem. It expects that new prescription volume will increase and even top pre-COVID-19 levels in the future.

* The company said that it's on track to kick off two pivotal late-stage studies of another sickle-cell disease drug, inclacumab, by mid-2021.

* It also expects to soon submit for U.S. approval to expand the label for Oxbryta to include treating kids ages 4 to 11 who have sickle-cell disease.

* Analyst reaction after the earnings: Piper Sandler lowered the Global Blood Therapeutics price target to $45 from $50 and kept a Neutral rating on the shares. The company reported Q1 Oxbryta revenue of $39M, a sequential decline that was "perhaps not unexpected" given prior guidance, Catanzaro tells investors in a research note. The analyst believes fiscal 2021 numbers likely need to come down further once again since the challenging commercial dynamics "could persist for Oxbryta in perpetuity." Roth Capital maintains Buy on GBT but lowered price target to $124 from $128. Canaccord Genuity maintains a Hold rating on the stock with a price target cut from $45 to $40.

* Price Action: GBT shares are down 4.8% at $37.9 during the market trading session on the last check Thursday.