Back to top

Analyst Blog

BioDelivery Sciences International, Inc. (BDSI - Free Report) reported loss of 29 cents per share in the fourth quarter of 2016, wider than the Zacks Consensus Estimate of a loss of 28 cents. The company had reported earnings of 19 cents per share in the year-ago quarter.

 

BioDelivery’s shares have traded above the Zacks classified Medical-Biomed/Genetics industry so far this year. Shares of the company gained 10.3%, while the industry registered an increase of 8%.



Revenues, on the other hand, were $3.9 million in the reported quarter compared with $32.2 million a year ago. This deterioration can mainly be attributed to a one-time milestone payment received from Endo International Plc (ENDP - Free Report) in 2015 related to approval of Belbuca. Belbuca was launched in the U.S. in Feb 2016. However, revenues were in line with the Zacks Consensus Estimate.

Quarter in Detail

BioDelivery’s opioid-dependence drug, Bunavail, recorded a 33.3% year-over-year increase in sales to $2 million. Prescription sales of the drug increased 4% year over year in the fourth quarter.

In the fourth quarter, research and development expenses amounted to $5.1 million, flat with the year-ago level. Selling, general and administrative expenses were down 18.8% year over year to $6.4 million.

Since last July, the company has secured better positioning in six new managed care contracts providing preferred access to Bunavail. This should boost its sales and profitability in 2017.

We remind investors that, BioDelivery reacquired worldwide rights to Belbuca in Jan 2017 from Endo Pharmaceuticals, a subsidiary of Endo International. This was followed by a strategic decision announced by Endo in Dec 2016 to discontinue commercial efforts for the U.S. branded pain business.

BioDelivery is presently exploring other commercial options for longer-term growth for Belbuca within and outside the U.S. Following a post-acquisition expansion of its sales force by 20 sales representatives to 65, the company is currently focusing much of its current commercial efforts, on growing Belbuca sales given the significant commercial opportunity for the product.

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 95% of the Belbuca prescription volume that was written in the second half of 2016.

2016 Results

Full-year revenues were $15.5 million compared with the year-ago figure of $48.2 million. Revenues were almost in line with the Zacks Consensus Estimate.

The full-year loss of $1.25 per share was in line with the Zacks Consensus Estimate. The company had incurred a loss of 72 cents per share a year ago.

Zacks Rank & Key Picks

BioDeliverycurrently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the health care sector include Addus HomeCare Corporation (ADUS - Free Report) and The Advisory Board Company (ABCO - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Addus HomeCare’s earnings per share estimates increased from $1.38 to $1.41 for 2017 over the last 30 days. The company posted positive earnings surprises in two of the four trailing quarters, with an average beat of 10.10%.

The Advisory Board’s earnings per share estimates increased from $1.41 to $1.48 for 2017 over the last 30 days. The company posted positive earnings surprises in three of the four trailing quarters with an average beat of 33.41%.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>