William Blair Reiterates Outperform On Biodelivery Sciences Following Management Meetings With investors


In a research report published today, William Blair analyst Tim Lugo reiterated an Outperform rating on Biodelivery Sciences (NASDAQ:BDSI) with a $25 price target, which represents a potential upside of 58% from where the stock is currently trading.

Lugo wrote, “On Tuesday, November 25, we traveled with CEO Mark A. Sirgo to several meetings with investors. Overall, talks centered on the ongoing Bunavail launch (which is currently in its third week) and the market potential of the company’s BEMA buprenorphine product with partner Endo International.”

The analyst continued, “We continue to view the next several quarters as transformational for the company with the launch of Bunavail, the NDA submission for BEMA buprenorphine (which will yield another $10 million milestone payment from Endo) on track for the last week of December or the first week of January 2015, and top-line readout of the first Phase III trial for topical clonidine gel in the first quarter of 2015.”

“Although our current valuation excludes value for topical clonidine gel, we believe the product could be a significant asset for the company given the large diabetic neuropathy patient population. Pending the launch of BEMA buprenorphine in the beginning of 2016, we would expect it to be strong given Endo’s marketing power in the opioid setting and the increased attractiveness of pain products, such as BEMA buprenorphine (which will be a Schedule III product). We maintain our Outperform rating on the company’s shares, continue to view BioDelivery Sciences as our top pick in 2014, and believe the company will have a catalyst rich 2015.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Tim Lugo has a total average return of -11.4% and a 36.4% success rate. Lugo has a 10.9% average return when recommending BDSI, and is ranked #3278 out of 3385 analysts.

 

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