BioDelivery Sciences International, Inc. (NASDAQ:BDSI) Re-acquires Belbuca

BioDelivery Sciences International, Inc. (NASDAQ:BDSI)

BioDelivery Sciences International, Inc. (NASDAQ:BDSI)

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) has been on an upward trend after reporting Q1 2017 earnings that beat estimates. Reacquisition of license rights to pain the management product, Belbuca, continues to fuel investor’s sentiments on the stock.

Stellar Q1 Earnings

The pain management product remains a key driver of the company’s earnings. During the first quarter, the drug generated sales that propelled BioDelivery Sciences International, Inc. (NASDAQ:BDSI) to profitability. First quarter net income came in at $48.3 million or $0.58 cents a share, blowing away analysts’ earnings expectations of $0.09 cents a share.

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) Chief Executive Officer, Mark Sirgo, expects revenue and earnings growth to continue into the second half of the year.

“We completed a swift and effective transition of BELBUCA following the early January close of the transaction with Endo Pharmaceuticals (Endo), and by the end of the quarter, we were generating sufficient product revenue to offset the expense of our commercial business unit. In fact, we recorded the highest net sales revenue for BELBUCA since the product was launched over a year ago…,” said Mr. Sirgo.

BioDelivery Sciences reported net revenues of $29.5 million for the first quarter, compared to net revenue of $3 million reported last year. Belbuca accounted for $4.6 million of total revenues. The company would have earned $640,000 in royalty payments from the drug had it not reacquired it. Cash and cash equivalent as of the end of the first quarter totaled $35.2 million compared to $32 million as of December 31, 2016.

Growth Drivers

The specialty pharmaceutical company is currently pursuing licensing agreements for Belbuca as it continues to pursue new sales avenues. The company is also eyeing approval in Canada to supplement sales in the U.S. Early this year the company secured $75 million in financing that it plans to use for the commercialization of the drug.

Belbuca is not the only product that BioDelivery Sciences International, Inc. (NASDAQ:BDSI) is relying on for revenues. Bunavail is the company’s other lead product and it generated revenues of $3.2 million in the quarter, up from $2.1 million as of last year.

“As for BUNAVAIL®, we will continue to focus our efforts on our current prescribers while working to secure new managed contracts where BUNAVAIL is in a favorable position. BUNAVAIL generated $3.2 million in revenue for the quarter,” said Mr. Sirgo.

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) plans to make a regulatory submission later in the year for the manufacture of ONSOLIs, a drug it licensed to Collegium Pharmaceuticals in 2016

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) closed a $2.30 on volume of 213,882.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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