Santarus, Inc. (SNTS) Is a Real Gas!

A company’s earnings per share growth rate is a measure of the increasing profitability of a company over period of time, usually a fiscal quarter or a year. In order to be considered a promising investment, a growth company should have a year-over-year earnings per share growth rate of at least 20%.

Earnings growth is certainly no problem for Santarus. The company has a whopping 166% year-over-year earnings per share growth rate. Last year, Santarus’ full-year earnings amounted to $0.27 per share. This year’s estimated fiscal year earnings per share is $0.76 — a 180% projected earnings per share growth rate! The company itself revised its own earnings estimate for 2013 upward to $0.92 per share–a 240% increase from the previous year.

Like Santarus, AstraZeneca plc (ADR) (NYSE:AZN) and Novartis AG (ADR) (NYSE:NVS) also market PPI gastrointestinal drugs. AstraZeneca manufactures and markets the prescription-only gastrointestinal drug Nexium (Esoprazole). Novartis AG (ADR) (NYSE:NVS), AG markets Lansoprazole and its over-the-counter version, Prevacid 24hr. These products directly compete with Santarus’ Zegerid drug.

Despite the marketing of similar gastrointestinal drug products, Santarus’ stellar earnings growth far exceeds that of AstraZeneca plc (ADR) (NYSE:AZN) and Novartis AG (ADR) (NYSE:NVS).

AstraZeneca plc (ADR) (NYSE:AZN)’s latest 12 month EPS growth rate was an anemic 5.17%, despite aggressive marketing tactics which have been criticized by others in the pharmaceutical industry. While Novartis has an impressive 72.92% year-over-year earnings per share growth rate, it is still less than half the annual EPS growth rate of Santarus.

It is apparent that the three aforementioned developments affecting Santarus, Inc. (NASDAQ:SNTS) in the past year have helped to fuel the company’s skyrocketing earnings growth. I would argue that a Fool would want to get in on this gastrointestinal drug maker because this party is just beginning–and it is going to be a gas!

The article Santarus Is a Real Gas! originally appeared on Fool.com and is written by Doug Lofton.

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