Maxim Maintains Buy On Keryx As Nephrology Conference Papers Show Cost Savings And LT Benefits Of Ferric Citrate


In a research note issued this morning, Maxim Group analyst Jason Kolbert reiterated a Buy rating on Keryx Biopharmaceuticals (NASDAQ:KERX) with a $26 price target, as the company announced two additional ferric citrate abstracts, which have been accepted for presentation at the American Society of Nephrology’s (ASN) annual meeting, to be held from November 11-16, 2014. These papers will have data on the long-term outcomes as well as cost effectiveness of ferric citrate versus other phosphate binders.

Kolbert noted, “These presentations provide additional data showing that ferric citrate can control phosphate levels and demonstrating its cost effectiveness. Since ferric citrate is outside the Medicare dialysis reimbursement “bundle,” a financial incentive exists for dialysis providers who are bundled to lower their cost and improve patient health/outcomes (reduced iron/ESA). In addition, our analysis suggests that, outside the bundle, cost savings exist through decreased hospitalizations compared to other phosphate binding drugs, which may lower CMS’ overall cost burden. We see these factors as important drivers that build the case for ferric citrate’s use and reimbursement.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 6.0% and a 45.0% success rate. Kolbert has a 17.3% average return when recommending KERX, and is ranked #553 out of 3343 analysts.

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