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BioDelivery (BDSI) Q2 Loss Narrows, Sales Miss, Shares Down

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BioDelivery Sciences International, Inc. (BDSI - Free Report) reported a loss of 16 cents per share for second-quarter 2018, which was narrower than the Zacks Consensus Estimate of a loss of 19 cents. In the year-ago quarter, the company had recorded a loss of 27 cents per share.

BioDelivery’s shares were down 3.5% in pre-market trading on Aug 10, probably on lower-than-expected sales guidance for 2018. Shares of the company have lost 1.7% so far this year compared with the industry’s 4.6% decrease.

Revenues were $12.2 million in the reported quarter, up 39.2% from the year-ago period. The increase in sales was mainly driven by strong demand for Belbuca. The top line, however, marginally missed the Zacks Consensus Estimate of $12.44 million.

The company reacquired worldwide rights to Belbuca in January 2017 from Endo International Plc (ENDP - Free Report) .

Quarter in Detail

BioDelivery’s opioid-dependence drug, Bunavail, recorded $1.1 million sales in the quarter, down 15.4% year over year. Moreover, revenues of the drug fell 38.9% sequentially. The lower sales of the drug were attributed to the company’s focus on expanding sales of its other drug, Belbuca.

BioDelivery’s second marketed drug, Belbuca, for chronic pain, generated revenues of $9.7 million in the quarter, surging 47% year over year. Sales rose 21.3% sequentially.

Prescription volume for Belbuca expanded 31% sequentially and 80% year over year supported by improved managed care coverage and expansion of sales force.

In the month of June, the company recorded an all-time high in prescription volumes to almost 13,000 prescriptions for Belbuca. This marked an increase of nearly 57% since the beginning of 2018. The company added approximately 900 new patients to Belbuca treatment during the quarter, reflecting growth of 28% sequentially. Management seems confident that Belbuca will witness continued strong growth in second half of 2018.

Moreover, Belbuca held almost 22.5% share of the market for buprenorphine products for chronic pain as of June 2018. The company, on its earnings call, stated that a significant number of patients have switched to Belbuca from other long-acting opioids as well as other buprenorphine-based drugs.

The company plans to expand its sales team further, which has already been increased by 30% so far this year to support Belbuca’s expansion. The company will also increase personnel at other teams to support the drug’s growth.

Moreover, the settlement of the patent litigation with Teva Pharmaceuticals (TEVA - Free Report) in February will keep generic competition at bay till mid-2027.

Research and development expenses declined 46.3% from the year-ago period to $0.9 million. Selling, general and administrative expenses fell 12.2% year over year to $14 million in the quarter.

In May, the company appointed Herm Cukier as its new chief operating officer, who held the position of senior vice president at Allergan (AGN - Free Report) previously.

2018 Guidance

The company expects to generate total revenues of $50 million to $52 million in 2018. However, the Zacks Consensus Estimates for 2018 stood at $52.44 million.

The company expects full-year sales of Belbuca to be in the range of $41 million-$43 million. Moreover, the company expects the drug to generate more than $200 million in annual sales over the long term.

The company anticipates that its cash position of $55.7 million as of Jun 30, 2018 will be enough to fund operations through 2020.

Zacks Rank

BioDelivery currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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