Cantor Fitzgerald Keeps a Buy Rating on BioDelivery

By Jason Carr

Cantor Fitzgerald analyst Chiara Russo reiterated a Buy rating on BioDelivery (NASDAQ: BDSI) today and set a price target of $4. The company’s shares opened today at $2.10.

Russo commented:

“A Lot of Moving Parts and 1x Items: BDSI reported 1Q17 results posting net income of $0.89, the majority of which was attributed to positive effects of the Belbuca return. These items included $20M in deferred revenue recognition, $27M in non-cash bargain purchase gain and a $16M tax benefit. Without these additions, BDSI would have reported a loss of ($0.23). BDSI finished 1Q with $35.2M in cash, which the company estimates should fund operations into 2H18. We have adjusted our estimates to reflect quarter and year end results. Alignment of Fundamentals: We have watched the re-launch of Belbuca closely following the ENDP transition with the recently expanded sales force growing Rx numbers through 1Q and April, per Symphony data. More importantly, $/Rx continues to increase with due to larger prescriptions and incremental price increases. We also note a significant shift to commercial payor which should allow for increased gross/net adding to the top-line. The expanded sales force of 65 armed with revised marketing messaging, particularly around titration, has been targeting physicians familiar with the buprenorphine molecule with success, in our view. We believe additional education campaigns such as speaker programs and a PAINWeekEND symposium will drive interest. Additional Upside: We see additional upside as BDSI focuses on managed Medicaid contracts of which BDSI as of Feb.”

According to, Russo is a 3-star analyst with an average return of 2.5% and a 41.2% success rate. Russo covers the Healthcare sector, focusing on stocks such as Paratek Pharmaceuticals, Axsome Therapeutics Inc, and Flexion Therapeutics.

Currently, the analyst consensus on BioDelivery is Strong Buy and the average price target is $4.17, representing a 98.6% upside.

In a report released today, Roth Capital also reiterated a Buy rating on the stock with a $4.50 price target.

Based on BioDelivery’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $29.48 million and quarterly net profit of $48.33 million. In comparison, last year the company earned revenue of $3.04 million and had a GAAP net loss of $18.73 million.

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BioDelivery Sciences International, Inc. operates as a pharmaceutical company, which engages in the development and commercialization of new applications of approved therapeutics to address important unmet medical needs. It focuses on pharmaceutical products in the areas of pain management and addiction. The company was founded on January 6, 1997 and is headquartered in Raleigh, NC.