HZNP - Horizon Therapeutics cuts FY adj. EBITDA guidance to reflect new milestone related expense
Horizon Therapeutics ( NASDAQ: HZNP ) on Friday said it had lowered its FY 2022 adj. EBITDA guidance on account of changes in its classification of what it called acquired in-process research and development (IPR&D) and milestones expense.
The company now expects adj. EBITDA of $1.2675B to $1.3175B from a previous forecast of $1.30B to $1.35B.
"Beginning with the third quarter of 2022, the Company is separately classifying upfront, milestone, and similar payments pursuant to collaboration, licenses of third-party technologies, and asset acquisitions as (IPR&D and milestones) expense in the consolidated statement of comprehensive income," HZNP said in a regulatory filing .
The company said it expects to record an additional $32.5M of acquired IPR&D and milestones expense during the year ended Dec. 31 in connection with is Aug. collaboration agreement with Q32 Bio.
The FY 2022 adj. EBITDA guidance was thus adjusted to reflect the additional acquired IPR&D and milestones expense associated with the Q32 Bio deal.
The company expects $15M of the $32.5M expense to be recorded in Q3 and $17.5M to be recorded in Q4.
HZNP stock -2% to $66.54 in premarket trading.
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Horizon Therapeutics cuts FY adj. EBITDA guidance to reflect new milestone related expense