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BioDelivery (BDSI) Up 8.9% 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 8.9% 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 its most recent earnings report in order to get a better handle on the important drivers.

BioDelivery Earnings & Sales Beat Estimates in Q2

BioDelivery recorded adjusted earnings of 6 cents per share for second-quarter 2019 against the Zacks Consensus Estimate of a loss of 6 cents. In the year-ago quarter, the company had incurred an adjusted loss of 12 cents per share.

Revenues totaled $29.7 million, up 143.4% from the year-ago period figure and 50% sequentially. The uptick was mainly driven by higher sales of Belbuca. The top line also outpaced the Zacks Consensus Estimate of $25.3 million.

Quarter in Detail

Net product sales were up 161% year over year to $28.1 million.

Belbuca generated revenues of $24.1 million in the quarter, up 29% sequentially. On a year-over-year basis, sales surged 147%. Sales of the drug have witnessed a strong uptrend since 2018. The momentum continued into the first half of 2019. This trend is likely to continue in the rest of the year as well.

Symproic sales in the second quarter, the first quarter after the acquisition and launch of the drug in May, added $3.2 million to the top line.

Sales of Bunavailwere $0.82 million in the second quarter, reflecting a decline of 19.5% year over year.

Meanwhile, operating expenses increased 47.6% to $22 million and 29.4% sequentially. The increase was due to continued investment in commercialization efforts for Belbuca and acquisition of Symproic.

2019 Guidance

BioDelivery raised its 2019 guidance for total revenues to a range of $101-$105 million from $92-$100 million predicted earlier. This upside can be attributed to strong demand for Belbuca and addition of Symproic to the company’s commercial portfolio.

Following the encouraging performance of Belbuca in the second quarter, the company again raised guidance for the drug’s sales. Sales of Belbuca are expected to be between $90 million and $93 million compared with $83 million and $88 million anticipated earlier. Symproic sales guidance was maintained in the $7-$9 million band.

Furthermore, the company anticipates combined sales of Belbuca and Symproic to reach $425 - $500 million over the long term.

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 -466.67% due to these changes.

VGM Scores

At this time, BioDelivery has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, BioDelivery has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.



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