Roth Capital analysts weighed in on Galena Biopharma Inc (NASDAQ:GALE) and BioDelivery Sciences International, Inc. (NASDAQ:BDSI) following Q4:15 earnings from both companies. While both analyst reiterated bullish ratings due to promising pipeline and prescription data, they both lowered their price targets due to launch year adjustments and drug revenue updates. Let’s take a closer look into analyst insights on the two specialty biopharmaceutical companies:

Galena Biopharma Inc

Roth Capital analyst Joseph Pantginis weighed in on Galena following the company’s Q4 and FY2015 results. The biopharmaceutical company develops therapeutics targeted to treat various types of cancer.

For Q4:15, the company reported a loss of ($0.12) per share, wider than estimates of ($0.07) per share. For the full year, the company posted a loss per share of ($0.41), lower than the consensus estimate of ($0.32) per share. This weak performance is due to “charges for discontinued operations based on the recent divestiture of the commercial assets in order to focus entirely on the immunotherapy platform, led by NeuVax.” NeuVax is the lead product candidate in Galena’s pipeline and has shown promising developments in recent trials.

For Galena, 2015 included some troubling non-pipeline issues. Galena made changes in the last year including “the divestiture of non-core commercial assets, settlement of class action lawsuits and what [Pantginis] consider[s] to be positive board changes and planned expansion and strengthening of the BOD.” Pantginis remains optimistic in 2016 performance for GALE and stated, “The company’s fundamental thesis remains strong, driven by a late stage development pipeline and promising earlier stage candidates.”

Pantginis reiterated his Buy rating on Galena and tweaked his price target from $6 to $5. He explains, “Our price target change is based on 1) change in base year, 2) adjustment to share count from equity raise, 3) changing projected launch year for GALE-401 (Anagrelide CR) from 2017 to 2018 and 4) removing (hopefully temporarily) GALE-301/302 from our projection.”

According to TipRanks, Joseph Pantginis has a 30% success rate recommending stocks and an average loss of 13.2% per rating. Three analysts have weighed in on Galena in the last three months and all are bullish. The average 12-month price target between these 3 analysts is $4.33, marking a 403% upside from where shares last closed.

BioDelivery Sciences International, Inc.

BioDelivery, a specialty pharmaceutical company focused on products principally in the areas of addiction and pain management, released 4Q:15 earnings  “within the range of expectations (perhaps the low end)” according to Scott Henry, analyst at Roth Capital. The analyst reiterated his Buy rating on BioDelivery and lowered his price target to $9 per share.

The 4Q15 report from the company included several key takeaways; primarily, the company is optimistic on Belbuca prescription data in the near future, disappointed in Bunavail performance, and is maintaining a robust cash balance. Belbuca and Bunavail are therapeutics in BioDelivery’s pipeline used to treat chronic pain and opioid dependence, respectively.

In the company report, “BDSI reported 4Q15 revenue of $32.2 million, versus [Henry’s] target of $53.0 million (note that $20M of the shortfall was due to a change in accounting treatment for a milestone)… the EPS of $0.18 was well short of our $0.58 target.” Henry hinted that this performance was mildly disappointing, while maintaining his support in the company due to potential growth and revenue from pipeline developments. Henry stated, “[He] continue[s] to believe that shares of BDSI are undervalued – particularly based on the potential of Belbuca.”

Scott Henry Stats

According to TipRanks, Scott Henry has a 33% success rate and an average loss of 1.4% per rating. Three analysts have weighed in on BioDelivery in the last 3 months and all are bullish. The average 12-month price target for the stock is $9 based on those three analysts, marking a 200% upside from where shares last closed.