Why Is BioDelivery (BDSI) Down 20.8% Since Last Earnings Report?
A month has gone by since the last earnings report for BioDelivery Sciences International (BDSI). Shares have lost about 20.8% 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 the most recent earnings report in order to get a better handle on the important drivers.
BioDelivery Q3 Earnings Beat, Revenues Miss
BioDelivery recorded earnings of 7 cents per share for third-quarter 2021, compared with 9 cents in the year-ago period. The company’s earnings beat the Zacks Consensus Estimate of 6 cents per share.
The reported earnings include share-based compensation and non-cash amortization of intangible assets. Excluding these items, adjusted earnings were 10 cents per share, down 16.7% year over year.
Revenues totaled $41.1 million, up 4.2% from the year-ago period. The uptick was mainly driven by higher sales of Belbuca and Symproic. Yet, revenues missed the Zacks Consensus Estimate of $42 million.
Quarter in Detail
Belbuca generated revenues of $36.9 million in the quarter, up 6.3% year over year. Sales of the drug have been witnessing a strong uptrend since 2018.
BioDelivery recorded Belbuca prescriptions of approximately 121,000 for the quarter, representing prescription volume growth of 7.7%. This growth was partially offset by sale of Belbuca’s generic version by Alvogen.
Symproic sales in the third quarter were $4.1 million, up 20% year over year. Total Symproic prescriptions during the quarter were up 7.6% year over year at approximately 19,200.
Product Royalty revenues in the third quarter were $0.02 million compared with $1.2 million in the year-ago period.
Operating expenses were up 13.4% year over year to $25.5 million.
Updates 2021 Guidance
While BioDelivery lowered its previous guidance for revenues in 2021, it reiterated its previous guidance for 2021 operating expenses. The company expects total revenues in 2021 to be in the range of $162 - $167 million down from the earlier guidance of $170 - $180 million.
This decrease in the financial guidance for revenue is on account of Alvogen marketing the generic version of Belbuca for sale through compendia / price reporting services despite a court order barring Alvogen from launching the same. The company has already filed a motion with regard to this issue in September 2021.
The company expects Belbuca sales for 2021 to be between $144 million and $148 million. Operating expense for 2021 is expected to be in the range of $115-$120 million including estimates for pre-launch investments which will support the launch of Elyxyb in first-quarter 2022.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -124% 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. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise BioDelivery has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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