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BioDelivery (BDSI): What's in Store this Earnings Season?
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BioDelivery Sciences International, Inc. is expected to report fourth-quarter 2016 results on Mar 17, before the opening bell. Last quarter, the company’s loss was wider than expected.
Year to date, BioDelivery’s shares have outperformed the Zacks classified Medical-Biomed/Genetics industry. Specifically, the stock gained 17.1% during the period, while the industry recorded an increase of 10.3%.
BioDelivery’s recent performance has been disappointing as it missed expectations in two of the last four quarters and met in the other two. The average negative earnings surprise for the last four quarters is 19.76%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
BioDelivery’s key products include Belbuca (chronic pain) and Bunavail (opioid-dependence).
Bunavail‘s sales performance have been lackluster so far. BioDelivery reduced spending on the drug. BioDelivery therefore cut the size of its sales force. It has reduced the number of sales territories and is focusing on the most growth-oriented territories. In the third quarter, BioDelivery completed the sales force restructuring. Current sales force now covers 85% of the overall market.
Nonetheless, BioDelivery is working on improving Bunavail’s performance. Apart from restructuring Bunavail‘s sales territories, the company is working on securing new or improved positioning on other managed care contracts either on an exclusive or preferred status. BioDelivery is also running a highly targeted Bunavail-focused, direct-to-patient digital advertising campaign in four cities. With a reduced cost structure combined with growth opportunities, BioDelivery expects Bunavail to reach profitability by the end of 2017.
Meanwhile Belbuca’s start has been slower than expected due to pain market pressures. The company launched Belbuca in U.S. in Feb 2016.
Meanwhile, in the quarter, BioDelivery announced that its phase IIb clinical study assessing the efficacy and safety of Clonidine Topical Gel for the management of painful diabetic neuropathy failed to show a statistically significant difference in pain relief between clonidine topical gel and placebo. As a result, is BioDelivery discontinued further development of the product. We expect the company to shed light on the issue at the conference call.
Earnings Whispers
Our proven model does not conclusively show that BioDelivery is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -3.70% as the Most Accurate estimate and the Zacks Consensus Estimate is pegged at a loss of 28 cents and 27 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Although BioDelivery’s Zacks Rank #3 increases the predictive power of ESP, its negative ESP makes surprise prediction difficult.
Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat in the upcoming quarter.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3.
Biogen Inc. (BIIB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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BioDelivery (BDSI): What's in Store this Earnings Season?
BioDelivery Sciences International, Inc. is expected to report fourth-quarter 2016 results on Mar 17, before the opening bell. Last quarter, the company’s loss was wider than expected.
Year to date, BioDelivery’s shares have outperformed the Zacks classified Medical-Biomed/Genetics industry. Specifically, the stock gained 17.1% during the period, while the industry recorded an increase of 10.3%.
BioDelivery’s recent performance has been disappointing as it missed expectations in two of the last four quarters and met in the other two. The average negative earnings surprise for the last four quarters is 19.76%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
BioDelivery’s key products include Belbuca (chronic pain) and Bunavail (opioid-dependence).
Bunavail‘s sales performance have been lackluster so far. BioDelivery reduced spending on the drug. BioDelivery therefore cut the size of its sales force. It has reduced the number of sales territories and is focusing on the most growth-oriented territories. In the third quarter, BioDelivery completed the sales force restructuring. Current sales force now covers 85% of the overall market.
Nonetheless, BioDelivery is working on improving Bunavail’s performance. Apart from restructuring Bunavail‘s sales territories, the company is working on securing new or improved positioning on other managed care contracts either on an exclusive or preferred status. BioDelivery is also running a highly targeted Bunavail-focused, direct-to-patient digital advertising campaign in four cities. With a reduced cost structure combined with growth opportunities, BioDelivery expects Bunavail to reach profitability by the end of 2017.
Meanwhile Belbuca’s start has been slower than expected due to pain market pressures. The company launched Belbuca in U.S. in Feb 2016.
Meanwhile, in the quarter, BioDelivery announced that its phase IIb clinical study assessing the efficacy and safety of Clonidine Topical Gel for the management of painful diabetic neuropathy failed to show a statistically significant difference in pain relief between clonidine topical gel and placebo. As a result, is BioDelivery discontinued further development of the product. We expect the company to shed light on the issue at the conference call.
Earnings Whispers
Our proven model does not conclusively show that BioDelivery is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is -3.70% as the Most Accurate estimate and the Zacks Consensus Estimate is pegged at a loss of 28 cents and 27 cents, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Although BioDelivery’s Zacks Rank #3 increases the predictive power of ESP, its negative ESP makes surprise prediction difficult.
Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are a couple of health care stocks that you may want to consider, as our model shows that this have the right combination of elements to post an earnings beat in the upcoming quarter.
AbbVie Inc. (ABBV - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
BioMarin Pharmaceutical Inc. (BMRN - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3.
Biogen Inc. (BIIB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #3.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>