Motley Fool 2/11/13
Keryx Biopharmaceuticals CEO, Ron Bentsur is confident that Zerenex has the potential to become the leading phosphate binder drug in the market. Burrill Institutional Research analyst, Reni Benjamin believed that Zerenex has the ability to compete once it enters the generics market by 2014. The phosphate binder market is huge and generates $1.5 billion annually.
Joseph Pantginis, analyst at Roth Capital shares the same view. According to him, Zerenex has a significant opportunity to become the first phosphate binder that provides meaningful properties to manage anemia associated with dialysis patients. He raised his price target for the shares of Keryx Biopharmeceuticals from $7 to $15 a share. He also predicted the approval of Zerenex in the U.S. and European markets next year.
There is also a possibility for Keryx Pharmaceuticals to establish a partnership with DaVita Healthcare Partners (NYSE: DVA), one of the leading providers of dialysis treatment for patients with ESRD. DaVita provides kidney dialysis treatment to 142,000 patients with chronic kidney failure. Eighty nine percent (89%) of its patient are covered under government-based healthcare programs, particularly Medicare. Since, Zerernx offers huge savings due to reduced use for IV iron and ESA, dialysis treatment providers such as DaVita would consider switching its phosphate binder treatments to patients. Bentsur pointed out that Sanofi’s generic Renvela doesn’t have the capacity to compete with the amount of cost savings offered by Zenerex.