Why Is BioDelivery (BDSI) Down 12.3% Since Last Earnings Report?
It has been about a month since the last earnings report for BioDelivery Sciences International (BDSI). Shares have lost about 12.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BioDelivery due for a breakout? 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 catalysts.
BioDelivery Q1 Earnings and Sales Beat
BioDelivery incurred a loss of 5 cents per share for first-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 8 cents. In the year-ago quarter, the company had incurred a loss of 18 cents per share.
Revenues totaled $19.8 million, up 75.2% from the year-ago period figure and 10% sequentially. The uptick was mainly driven by higher sales of Belbuca. The top line also outpaced the Zacks Consensus Estimate of $19.6 million.
Quarter in Detail
Belbuca’s solid momentum achieved in 2018 continued in the first quarter. The drug generated revenues of $18.7 million in the quarter, up 17.6% sequentially. On a year-over-year basis, the top line surged 133.8%.
Prescription volume for Belbuca expanded 16% sequentially and 141% year over year. During the quarter, the company recorded all-time high prescription volumes of almost 65,230 prescriptions for Belbuca.
The company added approximately 1,260 new patients to Belbuca treatment during the quarter, higher than 1.100 new patients in the previous quarter. Management seems confident about Belbuca’s continued strong performance in 2019.
Sales of Bunavail were $1.1 million in the first quarter, reflecting a decline of 38.9% year over year.
Operating expenses increased 6.3% to $17 million due to continued investment in commercialization efforts for Belbuca. However, operating expenses fell 8.1% sequentially.
2019 Guidance
BioDelivery raised its 2019 guidance for total revenues to the range of $92-$100 million from $85-$90 million predicted earlier. This encouraging guidance can be attributed to the addition of Symproic to the company’s commercial portfolio. The guided range is slightly lower than the Zacks Consensus Estimate of $100.71 million.
The company currently expects Belbuca sales for 2019 to be between $83 million and $88 million compared with $80 million and $85 million anticipated earlier. Symproic sales are projected to be in the $7-$9 million band.
Furthermore, the company anticipates its operating cash flow to turn positive in the current year.
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 40.95% due to these changes.
VGM Scores
At this time, BioDelivery has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, 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 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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