William Blair Reiterates Outperform On Biodelivery As It Acquires North American Rights To Pain Patch

In a research report sent to investors, William Blair analyst Tim Lugo reiterated an Outperform rating on Biodelivery Sciences (NASDAQ:BDSI) with a price target of $25, following the news that the company had reacquired marketing authorizations for Onsolis, a fentanyl buccal soluble film using the company’s proprietary BEMA technology for the management of breakthrough cancer pain in opioid-tolerant patients, in the United States and the right to seek marketing authorizations in Canada and Mexico from Meda AB, the company that it originally licensed these rights to in 2007.

Lugo noted, “We view Tuesday’s press release as a positive for the company as it brings another asset that we believe has been underleveraged by the company’s partner Meda.” He continued, “While we are intrigued by BioDelivery Sciences gaining another product for its Bunavail salesforce, the call point does not have much overlap, and management is exploring a partnership to maintain focus on the Bunavail launch. Meda continues to hold European rights to Onsolis/Breakyl, and the product is also approved in Taiwan and South Korea, where rights are held by TTY Biopharm and Kunwha Pharmaceutical Company, respectively.”

Furthermore the analyst said, “While shares of BioDelivery Sciences performed well in 2014, they came under significant pressure at the tail end of the year, selling off roughly 30% from their 52-week highs. We believe the weakness was due to lackluster initial scripts for the company’s launch of Bunavail, the company’s lead product for the treatment of opioid addiction. Overall, management has continued to execute on its strategic plan to develop pipeline products in the pain and addiction space and our confidence remains high on its ability to navigate clinical, regulatory, and commercial headwinds. We continue to rate the company Outperform with a $25 price target heading into a catalyst-rich first half of 2015.”

BioDelivery Sciences International, Inc., a specialty pharmaceutical company, develops and commercializes therapeutics in the areas of pain management and oncology supportive care. 


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