The shares of commercial pharmaceutical company Assertio Therapeutics (NASDAQ:ASRT) have slumped more than 40% in price year-to-date. But the stock gained momentum after the company reported better-than-expected earnings last week. So, considering unfavorable analyst expectations, can the stock sustain its recent rally? Keep reading to find out.Assertio Therapeutics, Inc. (ASRT), a commercial pharmaceutical company headquartered in Newark, Calif., provides neurology, hospital, and pain and inflammation medicines. ASRT stock has fallen 29.7% in price over the past year and 40.8% year-to-date to close yesterday’s trading session at $1.55. The shares have also declined 40.8% over the past six months, possibly due to conspiracy claims against the company.
There were allegations that Bausch Health Cos Inc. (BHC), ASRT, and Lupin Pharmaceuticals conspired to purchase Bausch's type 2 diabetes drug, Glumetza, to suppress generic competition through an illegal patent settlement. The company settled the Glumetza antitrust litigation for $7.0 million, which was paid in the third quarter, and includes a $3.85 million class settlement subject to court approval.
The stock gained 37.2% in price after the company reported its third-quarter earnings, beating the consensus estimate. ASRT’s net income came in at $3.74 million, reflecting a 135.5% increase year-over-year, while its EPS increased 122.9% year-over-year to $0.08 versus the negative $0.04 consensus estimate. But the company’s total revenues declined 26.3% from its prior-year quarter to $25.47 million.