Why Is BioDelivery Sciences (BDSI) Up 2.4% Since Its Last Earnings Report?

A month has gone by since the last earnings report for BioDelivery Sciences International, Inc. BDSI. Shares have added about 2.4% in that time frame.

Will the recent positive trend continue leading up to its next earnings release, or is BDSI due for a pullback? 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 drivers.

BioDelivery Q4 Loss Wider-Than-Expected, Sales Up Y/Y

BioDelivery reported a loss of 29 cents per share in the fourth quarter of 2017, wider than the Zacks Consensus Estimate of a loss of 22 cents. However, the reported loss was in line with the year-ago figure.

Revenues were $ 12.5 million in the reported quarter, significantly up 220.5% from the year-ago period and 10.6%, sequentially. The top line also surpassed the Zacks Consensus Estimate of $ 10 million. The year-over-year increase in revenues was mainly driven by the recognition of product revenues for Belbuca this year in comparison to royalties recorded a year ago.

Quarter in Detail

BioDelivery’s opioid-dependence drug, Bunavail, recorded $ 1.7 million sales in the quarter under review, up 15% year over year. However, revenues from the drug remained unchanged sequentially. The company is trying to enhance Bunavail sales through new and improved managed care contract.

Good news is that in October 2017, BioDelivery entered into a settlement agreement with Teva Pharmaceuticals, resolving its Bunavail patent litigation. Pursuant to this non-exclusive license agreement, Teva is anticipated to get permission to begin selling its generic version of Bunavail in the United States not before July 2028.

In the fourth quarter, the company logged revenues of $ 9.4 million from Belbuca, up 47% from the third. However, the prescription volume for Belbuca expanded 10% compared with the previous quarter.

Research and development expenses surged 33.3% to $ 6.8 million from the year-ago period. Selling, general and administrative expenses also increased 26.5% year over year to $ 14.8 million.

2017 Results

Full-year sales stood at $ 62 million, beating the Zacks Consensus Estimate of $ 54.9 million. Moreover, the top line significantly skyrocketed 300% compared with the year-ago figure of $ 15.5 million.

The full-year earnings of 9 cents per share missed the Zacks Consensus Estimate of 15 cents. However, the company reported a loss of $ 1.25 a year ago.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

BioDelivery Sciences International, Inc. Price and Consensus

VGM Scores

At this time, BDSI has a poor Growth Score of F, however its Momentum is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum based on our styles scores.

Outlook

BDSI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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