Healthcare analysts weighed in today with positive reports on biopharmaceutical companies Relypsa Inc (NASDAQ:RLYP) and Keryx Biopharmaceuticals (NASDAQ:KERX). The analysts reflect on Relypsa’s positive results from Veltassa’s DDI study, and provided thoughts ahead of Keryx’s phase 3 CKD data.
Relypsa shares are up nearly 12% in pre-market trading, after the company announced positive results from its healthy volunteer drug-drug interaction (DDI) study with Veltassa.
In reaction, Wedbush analyst Liana Moussatos reiterated an Outperform rating on the stock, with a price target of $86, which represents a potential upside of 338% from where the stock is currently trading.
Moussatos commented, “We believe these results coupled with the no reported observations of clinically meaningful impact on efficacy of concomitantly taken drugs in the Phase 2 or 3 trials—suggest to us that the current boxed warning recommending 6 hour separation between Veltassa and any other drug’s dosing is likely to be less onerous—if not removed altogether. These results, especially after being published in a peer reviewed journal, are likely to aid Relypsa’s and Sanofi’s salesforces to educate doctors on Veltassa.”
“While we believe these results should alleviate investor concerns and be a positive for RLYP shares, we do not anticipate a large material impact on the stock until we see what, if any, changes to the Veltassa label are made by the FDA after potential sNDA approval,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Liana Moussatos has a yearly average return of 8.5% and a 36.2% success rate. Moussatos has an -11.3% average return when recommending RLYP, and is ranked #267 out of 3593 analysts.
J.P. Morgan analyst Whitney Ijem reiterated an Overweight rating on shares of Keryx Biopharma, with a price target of $11, as the company’s Phase 3 trial data of Auryxia in non-dialysis dependent chronic kidney disease (NDD-CKD) is anticipated in early 2Q.
Ijem wrote, “We expect the readout will be positive as Auryxia has shown its ability to impact iron, and the trial is well designed in our view. That said, the broader biotech tape has certainly been trying and recent history suggests potential for limited upside after a positive de-risking event…which may especially be true in the context of Auryxia, which has had one of the most disappointing launches in recent memory.”
“Regardless, we wanted to help set the stage for the data (Phase 2 and 3 review starting on p. 4) and reiterate that doc feedback we get (summary starting on p. 11) continues to indicate the dual iron and phosphate benefit should lead to increased use. The question remains if or when we will start to see that bear out in prescription data (and on that front we think positive NDD-CKD data could help),” the analyst continued.
According to TipRanks.com, analyst Whitney Ijem has a yearly average return of -23% and a 0% success rate. Ijem has a -12.1% average return when recommending KERX, and is ranked #3209 out of 3593 analysts.
Out of the 11 analysts polled by TipRanks, 5 rate Keryx Biopharmaceuticals stock a Buy, 4 rate the stock a Hold and 2 recommend a Sell. With a return potential of 212%, the stock’s consensus target price stands at $10.50.