Procept Biorobotics (PRCT) Reports. Sell Rest of Arena Pharma (ARNA)
Procept Biorobotics (PRCT) reported official Q4 results this morning (preliminary results came out on January 11). Revenue of $10.1 million (up 216%) was at the high end of the preliminary range, as was full-year revenue (up 347% to $34.5 million).
Management also issued 2021 revenue guidance of $54 - $58 million (up 57% - 68%). This was well ahead of consensus estimates for $50 million. It sounds like they’ve doubled the size of the sales force, which is key to keeping momentum going during the early stages of the commercial rollout.
Management sees 2022 adjusted EBITDA loss near -$61.5 million. With $304.3 million in cash Procept should have plenty of cash to finance growth for a while. Shares have been up all day (despite a weak market this morning). I’ll have a few more details in Thursday’s Weekly Update. Maintaining at buy. BUY
Arena Pharmaceuticals (ARNA) has popped over 5% today, and with shares at 98.5 there is only 2% more to go before they reach Pfizer’s (PFE) proposed takeout price of 100. We could be leaving more on the table here if the offer is sweetened but at this point the old “bird in the hand is worth two in the bush” proverb rings true. Let’s sell our remaining stake to lock in the 153% gain and call it a day. SELL REMAINING HALF