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What's in Store for BioDelivery (BDSI) This Earnings Season?

BioDelivery Sciences International, Inc. BDSI is scheduled to report second-quarter 2017 results on Aug 9 after market close. Last quarter, the company’s earnings surpassed expectations.

Year to date, BioDelivery’s shares have outperformed the industry. In fact, the stock has gained 82.8% during the period, while the industry recorded an increase of 8.8%.

BioDelivery missed expectations in two of the last four quarters, met estimates in one and beat in the other one. The average positive earnings surprise for the last four quarters is 131.37%. It delivered an earnings surprise of 544.44% in the last quarter.

Let’s see how things are shaping up for this announcement.

Factors to Consider

BioDelivery’s key products include Belbuca (chronic pain) and Bunavail (opioid-dependence).

Bunavail’s sales performance has been lackluster so far. BioDelivery is working on improving Bunavail’s performance. The company has reduced the number of sales territories and is focusing on the most growth-oriented territories to improve Bunavail’s profits.

The company is also focusing on securing new or improved positioning on other managed care contracts either on an exclusive or preferred status.The company is also trying highly targeted Bunavail-focused, direct-to-patient digital advertising campaign to attain profitability by the end of 2017.

Bunavail sales improved somewhat in the first quarter. Moreover, Bunavail received FDA approval in May to expand the label to include treatment of opioid dependence.

Belbuca’s start has also been slower than expected due to pain market pressure.

However, in Jan 2017, BioDelivery terminated a license and reacquired worldwide rights to Belbuca from Endo Pharmaceuticals ENDP. The return of rights resulted in higher Belbuca revenues in the first quarter. Also, the drug has been approved in Canada for the management of severe pain in June. The company has signed a deal with Purdue Pharma for commercializing the drug in Canada.

It remains to be seen if the positive trends in Belbuca and Bunavail are reflected in the second-quarter results.

Earnings Whispers

Our proven model does not conclusively show that BioDelivery is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.

Zacks ESP: The Earnings ESP for BioDelivery is +12.00% as the Most Accurate estimate stands at a loss of 22 cents and the Zacks Consensus Estimate is at a loss of 25 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BioDelivery has Zacks Rank #4 (Sell).

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Some stocks in the healthcare sector that have both a positive Earnings ESP and a favorable Zacks Rank are:

Impax Laboratories, Inc. IPXL is scheduled to release results on Aug 9. The company has an Earnings ESP of +7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Puma Biotechnology Inc. PBYI has an Earnings ESP of +3.33% and a Zacks Rank #3. The company is expected to release results later this week.

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BioDelivery Sciences International, Inc. (BDSI): Free Stock Analysis Report
 
Puma Biotechnology Inc (PBYI): Free Stock Analysis Report
 
Endo International PLC (ENDP): Free Stock Analysis Report
 
Impax Laboratories, Inc. (IPXL): Free Stock Analysis Report
 
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