BioDelivery Sciences (BDSI) Q1 Earnings: What To Expect?
Zacks Investment Research | May 07, 2018 11:31PM ET
We expect BioDelivery Sciences International, Inc. (NASDAQ:BDSI) to beat estimates when it reports first-quarter 2018 results on May 10. In the last reported quarter, the company delivered a negative earnings surprise of 31.82%.
BioDelivery’s shares have underperformed the industry this year so far. The stock has declined 37.3% during the period compared with a 12.3% decrease for the industry.
BioDelivery’s earnings history has been a mixed bag with the company surpassing expectations in two of the last four quarters and missing in the other two. It delivered an average beat of 127.29%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
BioDelivery’s key products include Belbuca (chronic pain) and Bunavail (opioid-dependence).
Bunavail’s sales performance has been lackluster so far. However, BioDelivery is working on improving Bunavail’s performance. The company has reduced the number of sales territories and is focusing on the most growth-oriented territories to improve Bunavail’s profits.
The company is also focusing on securing new or improved positioning on other managed care contracts either on an exclusive or preferred status. Bunavail sales growth remained unchanged sequentially in the fourth quarter of 2017. With a reduced cost structure combined with growth opportunities, it remains to be seen if sales of the drug improve in the first quarter.
Belbuca’s start has also been slower-than-expected due to pain market pressure. We remind investors that BioDelivery had reacquired worldwide rights to Belbuca in January from Endo Pharmaceuticals, a subsidiary of Endo International. As a result of this reacquisition, the company started recording product revenues for Belbuca against royalties recorded previously.
The prescription volumes for Belbuca have shown improvement in the past couple of quarters following the re-acquisition. Sales of Belbuca improved sequentially in the fourth quarter of 2017. We believe this positive trend will continue through 2018. Belbuca was made commercially available in Canada for severe pain in January 2018, which should support further sales growth of the drug.
Earlier this week, BioDelivery Sciences announced the appointment of Herm Cukier as its new chief operating officer. Cukier was until now serving as the senior vice president at Allergan (NYSE:AGN) . He will be introduced on BioDelivery’s first-quarter conference call.
Earnings Whispers
Our proven model shows that the stock is likely to beat on earnings this quarter as it has the right combination of the two key ingredients — a positive Zacks Investment Research
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