BTIG analyst Hartaj Singh weighed in today with a pessimistic view on Keryx Biopharmaceuticals (NASDAQ:KERX), after the company announced that its lead candidate Aurxyia (Fexeric in the EU) was approved with a broad label spanning CKD and dialysis patients in the EU.

The analyst reiterated a Sell rating on Keryx shares, and reduced the price target to $2.50 (from $3.50), which represents a potential downside of 37% from where the stock is currently trading.

Singh explained, “While this news may seem positive, other developments since our August 6 move to a Sell rating on Keryx lead us to reduce our near- and long-term numbers for Auryxia. Continuing weak scripts trends for Auryxia, continuing weak sales for competitor product Velphoro in the US and EU and a strengthening of competitor offerings in the US and EU prompt us to seriously question the long-term potential of Auryxia as a differentiated product. Lastly, with a $20-25m burn rate per quarter (runway to mid/3Q16), we believe that there are some harsh binary choices facing Keryx, which investors should avoid. We remain bearish.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Hartaj Singh has a total average return of 6.4% and a 30.8% success rate. Singh is ranked #1573 out of 3766 analysts.

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