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BioDelivery (BDSI) Down 1.6% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for BioDelivery Sciences International (BDSI - Free Report) . Shares have lost about 1.6% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is BioDelivery due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

BioDelivery Q3 Earnings Beat, Sales In Line

BioDelivery reported a loss of 10 cents per share for third-quarter 2018, which was narrower than the Zacks Consensus Estimate of a loss of 14 cents and the year-ago figure of 21 cents.

Revenues increased 25.8% from the year-ago period and 16% sequentially to approximately $14 million. The increase in sales was mainly driven by strong demand for Belbuca. The top line was almost in line with the Zacks Consensus Estimate of $14 million.

Quarter in Detail

Bunavail, recorded $1.4 million sales in the quarter, down 16.4% year over year. However, revenues of the drug rose 27.3% sequentially. The lower year over year sales of the drug were attributed to the company’s focus on expanding sales of its other drug, Belbuca.

Belbuca, continued its growth trend in the third quarter. The drug generated revenues of $12.4 million in the quarter, surging 92% year over year. Sales rose 27% sequentially.

During the quarter, the company recorded an all-time high in prescription volumes to almost 44,180 prescriptions for Belbuca. Prescription volume for Belbuca expanded 25% sequentially and 95% year over year. The strong growth was supported by expansion of sales force and improved preferred coverage with leading pharmacy benefit manager, Express Scripts, adding the drug to its national preferred formulary list. The company has brought 100 million patients under preferred coverage so far this year, having started the year with 7 million.

The company added approximately 900 new patients to Belbuca treatment during the quarter, in-line with second-quarter 2018. Management seems confident about Belbuca’s continued strong performance in the fourth quarter of 2018.

Research and development expenses declined 64.8% from the year-ago period to $0.7 million. Selling, general and administrative expenses fell 9.3% year over year to $13.5 million in the quarter.

2018 Guidance

The company guided total revenues for 2018 to be at the higher end of its previously issued range of $50 million to $52 million. The company also expects Belbuca sales at the higher end of previously estimated full-year sales outlook of $41 million-$43 million. In the third-quarter earnings release, the company stated that it anticipates total and Belbuca revenues to be toward the upper end of the guidance.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a flat path over the past two months. The consensus estimate has shifted 18.52% due to these changes.

VGM Scores

Currently, BioDelivery has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

BioDelivery has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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