Biotech Beat: Analysts Bullish On Relypsa Inc (RLYP) And BioDelivery Sciences International, Inc. (BDSI)

Healthcare analysts provided insight on both Relypsa Inc (NASDAQ:RLYP) and BioDelivery Sciences International, Inc. (NASDAQ:BDSI) with bullish outlooks. Relypsa recently released positive data on an FDA-approved drug while BioDelivery provided a general update on what’s in store for 2016. Let’s take a look at analysts’ reactions:

Relypsa Inc

Following positive data from a Drug-Drug Interaction study on Veltassa, Mara Goldstein of Cantor Fitzgerald weighed in on Relypsa in light of the possibility of shedding the black-box warning from the drug.

Veltassa is Relypsa’s FDA-approved drug for hyperkalemia, or elevated potassium levels, and is the first new drug of its kind in 50 years. Goldstein explains the recently released positive DDI study results, commenting, “Drug-Drug Interaction (DDI) studies of 12 drugs that previously showed binding with Veltassa in vitro, suggest that this is not an issue in vivo.”

The drug currently comes with a black-box warning; the most severe warning is issued by the FDA. However, Goldstein hopes that these positive DDI results are a step in the right direction to removing the black-box warning. She explains, “Relypsa will submit these data to FDA in support of a label change, though we note that we do not think a change is necessary for the drug to meet our expectations.” Furthermore, the analyst believes Veltassa sales will pick up thanks to Medicare coverage and the pending status of being on its preferred drug list.

Goldstein concludes, “With such data in hand, Relypsa could have greater flexibility with which to pursue other corporate activities, in our view. We like the shares, believing Veltassa is an underpriced asset in a significant market with potential to drive valuation expansion.”

The analyst reiterates a Buy rating with a $42 price target.

Goldstein has a 29% success rate recommending stocks with average loss of 11% per rating. According to TipRanks, 11 analysts are bullish on Relypsa and 1 is bearish. The average 12-month price target between these 12 analysts is $46.09, marking a 126% potential upside from current levels.


BioDelivery Sciences International, Inc.

Analyst Edward White of FBR & Co. recently weighed in on BioDelivery Sciences after his meeting with company management. The analyst commented on Bunavail, the company’s opioid dependence treatment, stating that although its launch “has been slower than [he] expected,” he’s bullish on the company’s progress.

Going forward, White expects BioDelivery “to penetrate more [U.S.] states in 2016 and increase awareness about Bunavail,” through digital advertising, which will enable the company to expand the drug further. The analyst also mentions Belbuca, the company’s pain management opioid treatment jointly developed with Endo Pharmaceuticals. According to White, if Endo launches this drug in the U.S. in late February as expected, revenues will roll in for BioDelivery’s top line in the second half of 2016.

White is also anticipating the company’s upcoming analyst/investor day, where management will provide updates on both commercial and development products. There, he expects “to gain more clarity around the timeline of clinical development.” He also expects management to announce the filing of an IND, or Investigational New Drug, with a Phase 1 study for Buprenorphine Depot Injection with the FDA later this year. Despite the analyst decreasing his price target due to projected increases in R&D expenses, he “[remains] optimistic regarding BioDelivery’s products and product candidates.”

On January 26, 2016, the analyst reiterated his Outperform rating on the company and decreased his price target from $14 to $13. Edward White has a 5% success rate recommending stocks with an average loss of -26.2%.

According to TipRanks’ statistics, 2 analysts have rated the company in the past 3 months with a Buy rating. The average 12-month price target between these two analysts is $14, marking a 248% increase from where shares last closed.


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