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BioDelivery (BDSI) Buys US Rights to Pain Drug for $30M

Zacks Equity Research

BioDelivery Sciences International, Inc. BDSI announced that it has inked an exclusive licensing agreement with Japanese pharma company, Shionogi, acquiring U.S. commercial rights to the latter’s tablet for opioid induced constipation ("OIC") Symproic (naldemedine).

Symproic is an innovative approved for treating constipation caused by opioid pain (non-cancer) relief drugs. The agreement is likely to boost BioDelivery’s commercial pain portfolio which includes Belbuca which is also approved for treating chronic pain. The company expects combined net sales from Symproic and Belbuca to reach $325 million to $400 million over the long-term.

Shares of the company have increased 36.4% so far this year, compared with the industry’s rise of 9.7%.

Per the terms of the agreement, BioDelivery is liable to pay $20 million upfront and an additional $10 million in six months to Shionogi. The Japanese company is also eligible to receive tiered royalty on nets sales of Symproic in the United States from BioDelivery.

Following the acquisition of Symproic rights, BioDelivery anticipates net sales from Symproic to be in the range of $7 million – $9 million and total net sales between $92 million and $100 million (previously $85 million to $90 million) in 2019.

We remind investors that BioDelivery has progressed impressively with the expansion of the covered patient population for its major revenue generator, Belbuca. The company currently has more than 100 million patients under preferred coverage compared with 7 million at the beginning of 2018. This has significantly boosted the drug’s sales, which increased nearly 70% in 2018 from 2017. Prescription volume for Belbuca has expanded 26% year over year.

Moreover, the settlement of the patent litigation with Teva Pharmaceuticals TEVA in early 2018 will keep generic competition for Belbuca at bay till mid-2027.

BioDelivery Sciences International, Inc. Price


BioDelivery Sciences International, Inc. Price | BioDelivery Sciences International, Inc. Quote

Zacks Rank & Stocks to Consider

BioDelivery currently carries a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the same sector include ANI Pharmaceuticals, Inc. ANIP and Kamada Ltd. KMDA, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ANI Pharmaceuticals’ earnings estimates have increased from $5.90 to $5.97 for 2019 and from $6.58 to $6.62 for 2020 over the past 60 days. The stock has rallied 53.6% so far this year.

Kamada’s earnings estimates have increased from 35 cents to 47 cents for 2019 and from 60 cents to 63 cents for 2020 over the past 60 days. The stock has rallied 19% so far this year.

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