Galenica AG, specialty pharma giant owning Switzerland’s largest pharmacy network, is set to add drug-maker Relypsa Inc (NASDAQ:RLYP) to its beefed-up network, gaining medicine Veltassa in the process. Brean Capital analyst Difei Yang downgraded Relypsa to a Hold rating (from Buy).

Yang finds it quite evident that a company on a smaller business-scale like Relypsa faces too great of an uphill burn rate when trying to commercialize pipeline drug Veltassa- new medicine gaining recognition as the first in five decades to be approved in the United States for hyperkalemia, a high imbalance of potassium in a patient’s blood. Galenica has offered $32/share to take over Relypsa, a total in cash of about $1.53 billion; an offer Yang believes to be “reasonable and fair given our Veltassa intrinsic value plus synergy consideration.”

This deal will be gainfully beneficial to Vifor Pharma, a company of the Galenica Group that leads in the discovery and distribution of pharmaceutical products, now able to truly make its mark in the United States cardio-renal market. Yang just picked Relypsa as its best pick for 2016’s third quarter, believing it to be ideal merger/acquisition target material with a buy-out range of $32-35; a range which Galenica has met.

Now that both Galenica and Relypsa have agreed to the $32/share trade, it will take a substantially improved offer of 15% or higher to be able to shake the deal. Yang feels “confident” that no second bidder will out-bid Galenica, rendering Relypsa unofficially Galenica’s.

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 ranks at #3,958 out of 4,073 analysts, and upholds a 37% success rate while withstanding an average loss of 12.8% in her annual returns.

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TipRanks analytics exhibit RLYP as a Moderate Buy. Based on 12 analysts who have been polled about Relypsa in the past 3 months, 67% rate a Buy, 25% maintain a Hold, and the remaining 8% issue a Sell. The consensus price target is $31.60, marking a slight 0.7% downside from current levels.