BioDelivery Sciences International, Inc. (NASDAQ:BDSI) Surges On Q1 Net Profit

BioDelivery Sciences International, Inc. (NASDAQ:BDSI)

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) edged higher in the market after reporting Q1 2017 earnings that beat Wall Street expectations. The North Carolina-based company says it generated a net income of $48.3 million in the quarter compared to a net loss of -$18.7 million the same period last year.

Q1 Financial Results

BioDelivery Sciences International, Inc. (NASDAQ:BDSI)’s net profit in the quarter was mostly driven by an increase in sales of the company’s key products BELBUCA and BUNAVAIL. The company has also attributed the increase to a licensing and distribution agreement for Belbuca.

Net revenue in the quarter totaled $29.5 million. Product related revenue came in at $9.5 million compared to $3.3 million as of Q4 2016. BELBUCA net sales came in at $4.6 million as Bunavail sales nearly doubled to highs of $3.2 million from $2.1 million as of the first quarter last year.

Operating expenses in the quarter dropped to $15.9 million from $18.4 million mainly as a result of a reduction in operating expenses in relation to research and development spending. Cash and cash equivalents as of the end of the quarter totaled $35.2 million.

“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,” said Chief executive officer Dr. Mark A Sirgo.

Corporate Highlights

BioDelivery Sciences International, Inc. (NASDAQ:BDSI) has since confirmed it is pursuing licensing agreements as it seeks to secure two partnerships in the U.S for BELBUCA. Focusing on current prescribers for BUNAVAIL is a core objective as the company looks to secure new managed contracts where the drug is in a favorable position.

Some of the milestones achieved in the quarter included the closing of an agreement with Endo Pharmaceuticals that resulted in the termination of licensing rights for BELBUCA. The company also achieved the highest net sales level for BELBUCA that led to the profitability of the commercial business unit.

Shares of BioDelivery Sciences International, Inc. (NASDAQ:BDSI) were up by 5.26% on the earnings report – ending Monday’s trading session at $2 a share.

During the quarter BioDelivery Sciences International, Inc. (NASDAQ:BDSI) also received the U.S. Food and Drug Administration’s (FDA) approval for a supplemental New Drug Application (NDA). The approval expanded the indication of BUNAVAIL to include treatment for opioid dependence.

Looking ahead the company is planning to execute two commercial transactions for BELBUCA in the U.S as it also eyes regulatory approval in Canada.

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.

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

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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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