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BioDelivery (BDSI) Up 6% Since Last Earnings Report: Can It Continue?

Zacks Equity Research

A month has gone by since the last earnings report for BioDelivery Sciences International (BDSI). Shares have added about 6% in that time frame, outperforming the S&P 500.

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

BioDelivery Earnings & Sales Beat Estimates in Q3

BioDelivery recorded adjusted earnings of 3 cents per share for third-quarter 2019, which beat Zacks Consensus Estimate of loss of a cent. In the year-ago quarter, the company had incurred an adjusted loss of 10 cents per share.

Revenues totaled $30.3 million, up 114% from the year-ago period and 2% sequentially. The uptick was mainly driven by higher sales of Belbuca and the addition of Symproic tablets to its portfolio. The company added Symproic to its portfolio by acquiring U.S. commercial rights to the drug from Japanese pharma company, Shionogi. Sales also outpaced the Zacks Consensus Estimate of $29 million..

Quarter in Detail

Net product sales were up 115% year over year to $29.6 million.

Belbuca, generated revenues of $26.5 million in the quarter, up 10% sequentially. On a year-over-year basis, the top line soared 115%. Sales of the drug have witnessed a strong uptrend since 2018.

Symproic sales in the third quarter were $2.2 million. The third quarter was the first full quarter of commercialization following the acquisition of the product.

Sales of Bunavail, indicated for the treatment of opioid dependence, were $0.9 million in the third quarter, reflecting a decline of 35.7% year over year.

Meanwhile, operating expenses increased 64.6% to $23.4 million and 6.4% sequentially. The increase was due to ongoing investments in marketing, sales and medical affairs..

2019 Guidance

BioDelivery raised its 2019 guidance for total revenues to $105-$110 million from $101-$105 million predicted earlier. This upside can be attributed to the strong demand for Belbuca and positive indicators of growth for Symproic. The Zacks Consensus Estimate for sales stands at $108.61 million.

2020 Guidance

The company provided full-year 2020 Belbuca net sales expectations of $150-$160 million and total company net sales expectations of $165-$175 million. The Zacks Consensus Estimate stands at $151.23 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 500% due to these changes.

VGM Scores

At this time, BioDelivery has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise BioDelivery has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.



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