Revenue during the quarter dropped 7.88 percent to $208.70 million from $226.54 million in the previous year period. Gross margin for the quarter contracted 1377 basis points over the previous year period to 59.19 percent. Operating margin for the quarter stood at negative 10.22 percent as compared to a positive 20.19 percent for the previous year period.

Operating loss for the quarter was $21.32 million, compared with an operating income of $45.73 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $141.22 million compared with $131.14 million in the prior year period. At the same time, adjusted EBITDA margin improved 978 basis points in the quarter to 67.67 percent from 57.89 percent in the last year period.

"We delivered strong results in the third quarter as we continued to execute on our long-term strategy of building a more-diversified, sustainable biopharmaceutical company anchored by a growing mix of orphan medicines," said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma plc. "We have made several strategic decisions this year to put Horizon Pharma on a strong path forward, including securing formulary status with two major PBMs for our primary care medicines and completing two significant acquisitions in rare diseases."

Horizon Pharma expects revenue to be in the range of $980 million to $985 million for financial year 2016.

The company has spent $538.43 million cash to meet investing activities during the nine month period as against cash outgo of $1,034.19 million in the last year period.

The company has spent $1.69 million cash to carry out financing activities during the nine month period as against cash inflow of $1,440.59 million in the last year period.

Cash and cash equivalents stood at $549.30 million as on Sep. 30, 2016, down 19.73 percent or $134.98 million from $684.29 million on Sep. 30, 2015.

Working capital declines
Horizon Pharma has witnessed a decline in the working capital over the last year. It stood at $561.47 million as at Sep. 30, 2016, down 11.16 percent or $70.56 million from $632.04 million on Sep. 30, 2015. Current ratio was at 2.01 as on Sep. 30, 2016, down from 2.97 on Sep. 30, 2015.

Cash conversion cycle (CCC) has increased to 158 days for the quarter from 44 days for the last year period. Days sales outstanding went up to 120 days for the quarter compared with 82 days for the same period last year.

Days inventory outstanding has increased to 88 days for the quarter compared with 29 days for the previous year period. At the same time, days payable outstanding went down to 50 days for the quarter from 66 for the same period last year.