Ultragenyx Reports $118 Million Loss and Third-Quarter Revenue Below Expectations
Key Facts
Ultragenyx Pharmaceutical reported a net loss of $118 million, or $1.16 per share, for the third quarter ended September 30, 2026, one cent wider than the average estimate from six analysts for a loss of $1.15 per share. Revenue came to $173 million, below the average estimate of $184.3 million. The company said quarterly revenue rose 8.1% from the third quarter of 2025, when it was $160 million. Meanwhile, the net loss narrowed from $180 million, or $1.81 per share, a year earlier. The results reflect revenue growth alongside continued losses, while sales remained below analysts’ expectations.
Product sales totaled $105 million, while royalty revenue reached $68 million during the quarter. Performance varied across key products: Crysvita revenue fell to $109 million from $112 million in the year-earlier period. By contrast, Dojolvi revenue rose to $30 million from $24 million, and Evkeeza revenue increased to $24 million from $17 million. Mepsevii recorded revenue of $10 million for the quarter. The mix shows growth in some products alongside a year-over-year decline in Crysvita revenue.
Research and development expenses fell to $154 million in the third quarter from $216 million a year earlier, while selling, general and administrative expenses rose to $97 million from $87 million. The company announced a plan to reduce its workforce by about 20%, bringing expected headcount to approximately 1,000. It said the cuts are intended to reduce 2027 R&D expenses by at least 50% compared with 2025. It also targets 2027 R&D expenses below $350 million and selling, general and administrative expenses below $375 million. The company expects its fourth-quarter results to include about $25 million in one-time severance and restructuring costs, and said most job cuts should be completed by the end of 2026.
Cash, cash equivalents and marketable securities totaled $401 million on September 30, and the company used $43 million in cash in operations during the quarter. In October, it entered into two agreements to sell priority review vouchers received after the approvals of GENGLYCOS and FAYUVI, for a total price of $413 million. Ultragenyx expected net proceeds from the two transactions to be about $350 million. The GENGLYCOS voucher sale had closed, while the FAYUVI transaction was expected to be completed later in the month. The expected proceeds provide additional financial context alongside the liquidity reported at quarter-end.
For the nine months ended September 30, the net loss was $395 million, compared with $446 million in the same period of 2025. Chief Executive Emil Kakkis said, "The launch of the two new therapies is going well, with growing demand for both products." The company linked the expense cuts to the launches and growth in its core business, saying they support its expectation of achieving meaningful profitability in 2027 and beyond. The U.S. Food and Drug Administration granted accelerated approval to GENGLYCOS on August 19, 2026, as an adjunctive treatment to reduce daily cornstarch intake in adults and children aged 8 years and older with glycogen storage disease type Ia; it is the first approved treatment for the condition. FAYUVI was also approved on September 17, 2026, to treat the neurological manifestations of Sanfilippo syndrome type A.
The company expected data in the first half of 2027 from the Phase 3 study of DTX301, which follows patients for up to 64 weeks to assess an endpoint related to reducing ammonia-scavenger medication use and dietary management. It scheduled a conference call to discuss third-quarter results and a corporate update for November 3, 2026, at 5 p.m. Eastern time. In analyst coverage, the average price target reported by Reuters was $26.25 per share on November 3. Ratings from 21 analysts comprised 10 Buy recommendations and 11 Hold recommendations. Earnings-per-share estimates had also fallen 15% in the 60 days before the news.