BioDelivery Sciences International, Inc. (BDSI - Free Report) reported a loss of 30 cents per share in the third quarter of 2016, wider than Zacks Consensus Estimate of 26 cents but narrower than the year-ago loss of 39 cents.
Revenues, on the other hand, surged 189.1% year over year to $3.6 million and beat the Zacks Consensus Estimate of $3 million. Total revenues included an upfront payment of $2.5 million from Collegium Pharmaceutical, Inc. (COLL - Free Report) for the licensing rights to Onsolis in the U.S.
Quarter in Detail
BioDelivery’s opioid-dependence drug, Bunavail, recorded sales of $2 million, up 66.6% year over year. Prescription sales of the drug remained stable on a sequential basis but rose68% from the year-ago levels.
Meanwhile, Belbuca was launched in the U.S. in Feb 2016 by BioDelivery’s commercial partner, Endo Pharmaceuticals, a subsidiary of Endo International plc (ENDP - Free Report) . BioDelivery receives royalties on Belbuca sales from Endo. Belbuca witnessed continued prescription growth in the U.S.
In the third quarter, research and development expenses amounted to $4.4 million, down 2.2%. Likewise selling, general and administrative expenses were down 17.7% to $12.1 million.
Since this July, the company has secured a better position in six new managed care contracts, providing preferred access to Bunavail, which should boost its sales and profitability. In fact, the company estimates that the improved positioning will enhance the drug’s potential access to approximately half a million prescriptions annually.
Four of the aforesaid contracts will provide access with only one other branded buprenorphine/naloxone product, including one plan in which the Suboxone film will move to the non-preferred status in Jan 2017. The other two contracts will add Bunavail with both the branded products. While two contracts will be effective in the fourth quarter of 2016, three of the others have an implementation date of Jan 1, 2017.
The company has strategically consolidated its sales force, which will result in total savings of approximately $20 million through the end of 2017. The present sales force covers 85% of the overall market.
Zacks Rank & a Key Pick in the Sector
BioDelivery currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the health care sector is Anika Therapeutics Inc. (ANIK - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anika’s earnings estimates have increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company has posted a positive earnings surprise in all of the four trailing quarters with an average beat of 33.14%. Its share price has increased 13% year to date.
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