Why Is Ultragenyx Stock Sinking Friday?

Core Insights - The upcoming year is a pivotal moment for the company, with two potential product launches and a crucial data readout expected to significantly boost commercial revenue [1] - A strategic restructuring plan is being implemented to lower operating expenses and align resources with high-impact opportunities in the rare disease sector [2] FDA Update - The company received an Incomplete Response Letter (IRL) from the FDA regarding its resubmitted marketing application for UX111 (rebisufligene etisparvovec) gene therapy for Sanfilippo syndrome type A, requesting additional documentation for resubmission [3] Earnings Snapshot - The company reported a fourth-quarter loss of $1.29 per share, missing the consensus estimate of $1.14, while sales increased to $207 million from $165 million year-over-year, surpassing the consensus of $196.97 million [4] - Revenue from Crysvita was $145 million, Dojolvi reached $32 million, and Evkeeza sales were $17 million [4] Strategic Restructuring - A strategic restructuring plan has been initiated, including a 10% workforce reduction affecting approximately 130 employees, aimed at reducing expenses and partially reinvesting to support future growth [5] - The company aims to achieve profitability by 2027 through significant cost discipline and revenue growth from current and new product launches [5] Outlook - The company forecasts fiscal 2026 sales between $730 million and $760 million, below the consensus of $786.93 million, with Crysvita revenue expected to be between $500 million and $520 million and Dojolvi revenue projected at $100 million to $110 million [6] Market Reaction - Following the announcements, Ultragenyx Pharmaceutical shares fell by 10.21% to $21.10 [7]