H.C. Wainwright Remains Bullish On Keryx Following Ferric Citrate FDA Approval


In a research report issued today, H.C. Wainwright analyst Reni Benjamin reiterated a Buy rating on Keryx Biopharmaceuticals (NASDAQ:KERX) with a $19 price target, following the US approval of the company’s phosphate binder Ferric Citrate. 

Benjamin wrote, “The label did not contain information regarding the potential to lower the use of erythropoietin stimulating agents (ESA), but instead provided a safety warning for patients receiving IV iron. Although investors have taken a negative view to the label, we believe this information should not affect future drug uptake, given that the published Phase 3 results highlight lower ESA and IV iron use for those patients on Ferric Citrate. In our opinion, while sales personnel may not be able to address off-label benefits directly, the medical science liaison (MSL) team should be able to highlight relevant clinical benefits to physicians broadly. Despite the “surprise” within the label, with $155 MM in cash and cash equivalents, a growing sales force to market Ferric Citrate in the absence of generic entries, and royalties from Japanese partner JT Torii, we believe shares of Keryx remain undervalued and represent upside to the risk-tolerant, long-term investor.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Reni Benjamin has a total average return of -3.8% and a 27.3% success rate. Benjamin has a -6.4% average return when recommending KERX, and is ranked #3072 out of 3282 analysts.

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