Insights

Why Global Blood Therapeutics Stock Was Sickly Today

What happened
After market hours on Wednesday, Global Blood Therapeutics (NASDAQ: GBT) released a first-quarter earnings report that investors didn’t digest well. As a result, the following day, the stock fell by 8% — a steep rate, even on a very bearish day when the S&P 500 index declined by 3.6%.
So what
For the quarter, Global Blood Therapeutics’ sales hit nearly $55.2 million, representing quite an encouraging improvement over the year-ago quarter’s $39 million. But increased research and development, along with selling, general, and administrative (SGA) expenses, widened the company’s net loss. This landed at nearly $83.5 million ($1.26 per share), while in the first quarter of 2021, it was just shy of $75 million.
Image source: Getty Images.

Although the revenue figure didn’t quite reach the $56.1 million analysts were collectively estimating, Global Blood Therapeutics beat on the bottom line. Those prognosticators expected a deeper shortfall of $1.30 for the quarter.
At the moment, the company’s sole commercialized product is sickle cell disease (SCD) treatment Oxbryta. It’s not only the one product it has on the market, it’s also the single source of revenue, at present.
During the quarter, the biotech received marketing authorization from the European Commission (the regulator for the 27-nation European Union) for Oxbryta. Global Blood Therapeutics also launched the drug for patients aged 4 to 11. Both events should help boost sales as we move through 2022.
Now what
As for Global Blood Therapeutics’ pipeline, the company said it’s currently enrolling patients for a pair of phase 3 clinical trials that will put vaso-occlusive crisis treatment inclacumab through its paces. It’s also hoping to restart its stalled phase 1 trial for another SCD drug, GBT021601.
While that’s encouraging, investors either expected more from Oxbryta or found the experimental-drug news wanting. The coming months should give a better indication of the future paths of both. 
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

After market hours on Wednesday, Global Blood Therapeutics (NASDAQ: GBT) released a first-quarter earnings report that investors didn’t digest well. As a result, the following day, the stock fell by 8% — a steep rate, even on a very bearish day when the S&P 500 index declined by 3.6%.

So what

For the quarter, Global Blood Therapeutics’ sales hit nearly $55.2 million, representing quite an encouraging improvement over the year-ago quarter’s $39 million. But increased research and development, along with selling, general, and administrative (SGA) expenses, widened the company’s net loss. This landed at nearly $83.5 million ($1.26 per share), while in the first quarter of 2021, it was just shy of $75 million.

Image source: Getty Images.

Although the revenue figure didn’t quite reach the $56.1 million analysts were collectively estimating, Global Blood Therapeutics beat on the bottom line. Those prognosticators expected a deeper shortfall of $1.30 for the quarter.

At the moment, the company’s sole commercialized product is sickle cell disease (SCD) treatment Oxbryta. It’s not only the one product it has on the market, it’s also the single source of revenue, at present.

During the quarter, the biotech received marketing authorization from the European Commission (the regulator for the 27-nation European Union) for Oxbryta. Global Blood Therapeutics also launched the drug for patients aged 4 to 11. Both events should help boost sales as we move through 2022.

Now what

As for Global Blood Therapeutics’ pipeline, the company said it’s currently enrolling patients for a pair of phase 3 clinical trials that will put vaso-occlusive crisis treatment inclacumab through its paces. It’s also hoping to restart its stalled phase 1 trial for another SCD drug, GBT021601.

While that’s encouraging, investors either expected more from Oxbryta or found the experimental-drug news wanting. The coming months should give a better indication of the future paths of both. 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!