BioDelivery (BDSI) Q2 Loss Wider Than Expected, Stock Falls
Zacks Investment Research | Aug 09, 2017 10:20PM ET
BioDelivery Sciences International, Inc. (NASDAQ:BDSI) reported a loss of 27 cents per share in the second quarter of 2017, which was wider than the Zacks Consensus Estimate of a loss of 25 cents. The company had reported a loss of 31 cents per share in the year-ago quarter.
BioDelivery’s shares fell more than 11% in after-hours trading on Aug 9. However, shares have traded significantly higher than the industry so far this year. The stock gained 80% while the industry registered an increase of 8.7%.
Revenues were $8.7 million in the reported quarter, up 74.7% from the year-ago period. Revenues surpassed the Zacks Consensus Estimate of $7.8 million. However, revenues were down from $29.5 million in the prior quarter.
We remind investors that BioDelivery reacquired worldwide rights to Belbuca in Jan 2017 from Endo Pharmaceuticals, a subsidiary of Endo International Plc (NASDAQ:ENDP) . As a result of the reacquisition, the company started recording product revenues for Belbuca against royalties recorded previously.
Due to this reacquisition, BioDelivery recorded $20 million in non-cash deferred revenues last quarter. The amount was a part of the $50 million received from Endo upon Belbuca’s approval.
Quarter in Detail
We note that BioDelivery has shifted to the sell-in method for revenue recognition since the beginning of this calendar year from its earlier sell-through method.
BioDelivery’s opioid-dependence drug, Bunavail, recorded 59.4% sequential decrease in sales to $1.3 million. The revenues in the first quarter had included $1.7 million recognized as sales for product shipped to wholesalers before Jan 2017.
In the reported quarter, the company recorded the highest net sales revenues of $6.6 million for Belbuca since the product was launched in early 2016, up 43.5% sequentially. The growth was primarily due to preferred access given to Belbuca over Butrans as part of a contract signed with United Healthcare.
In the second quarter, research and development expenses decreased 60.3% to $1.6 million from the year-ago period. Selling, general and administrative expenses were however up 27.8% year over year to $16 million.
Other Details
In June, the drug received regulatory approval in Canada for the management of severe pain. The company also signed a deal with Purdue Pharma in July for the commercialization of Belbuca in Canada. Per the agreement terms, BioDelivery will receive 4.5 million in Canadian Dollars as upfront and milestone payments along with royalties on sales. The company expects a launch in early 2018.
In the reported quarter, BioDelivery received approval from the FDA for a supplemental new drug application (sNDA) for the label expansion of Bunavail. The company is looking to expand the label of Bunavail to include induction of buprenorphine treatment for opioid dependence.
Also, at March end, the company announced that patent protection for its three approved products including Onsolis was extended from 2020 to 2027 under two new patents. The company will receive a milestone payment of $3 million from Collegium Pharmaceutical, Inc. (NASDAQ:COLL) due to the extension of patent for Onsolis. However, the payment is subject to approval of the supplemental application supporting the new manufacturer for Onsolis by the FDA.
The company expects Belbuca’s positive growth trend to continue this year along with the addition of new managed care contracts. The company is also planning to file a regulatory submission later this year to qualify a new manufacturer for Onsolis. A potential relaunch of the drug is expected in the first half of 2018.
Get The News You Want
BioDelivery Sciences International, Inc. Price, Consensus and EPS Surprise
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.