Analyst Difei Yang of Brean Capital feels reassured about the Relypsa Inc’s (NASDAQ:RLYP) ascending success, calling attention to its up-and-coming potassium-binding Valtassa, a beta drug for treating high levels of potassium in a patient’s blood. After a catch-up phone call with company management, the analyst reiterates a Buy rating with a price target of $26.00.

For now, rejection of Relypsa competitor AstraZeneca’s leading experimental hyperkalemia drug ZS-9 means FDA approval is left hanging in the balance for the next year until manufacturing bugs are resolved. But one rival’s stalemate clears the wings for vying biotech contender Relypsa’s Veltassa Rx to rise to the challenge. Yang puts the idea forward that this “extra gain on the lead time in an emerging market will help Veltassa to gain a strong foothold.”

Meanwhile, prescription results for June were just released, leaving Yang with a staunch hunch that part of this data contains refills- in other words, Veltassa retention is left looking strong, already accelerating with promising numbers, and this considering the company has only just begun to climb.

The analyst maintains, “We still view Relypsa as an attractive acquisition target with a promising drug in early development,” with a bullish belief that Veltassa revenue remains “on track to achieve $11-12 million this year.”

As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks, Difei Yang is ranked #3,475 out of 4,058 analysts, sustaining a 44% success rate as well as amassing a loss of 2.2% on her annual returns.

TipRanks indicates that out of 12 analysts polled in the last 3 months on Relypsa stock, 10 rate an Outperform, while 1 rates a Market Perform, and 1 rates an Underperform. The average 12-month price target for the stock is $30.45, marking close to a 51% upside from where shares last closed.