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BioDelivery Sciences (BDSI) Q1 Earnings: What to Expect?

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We expect BioDelivery Sciences International, Inc. BDSI to beat estimates when it reports first-quarter 2018 results on May 10. In the last reported quarter, the company delivered a negative earnings surprise of 31.82%.

BioDelivery's shares have underperformed the  industry this year so far. The stock has declined 37.3% during the period compared with a 12.3% decrease for the industry.

BioDelivery's earnings history has been a mixed bag with the company surpassing expectations in two of the last four quarters and missing in the other two. It delivered an average beat of 127.29%.

BioDelivery Sciences International, Inc. Price and EPS Surprise

BioDelivery Sciences International, Inc. Price and EPS Surprise | BioDelivery Sciences International, Inc. Quote

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. However, 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. Bunavail sales growth remained unchanged sequentially in the fourth quarter of 2017. With a reduced cost structure combined with growth opportunities, it remains to be seen if sales of the drug improve in the first quarter.

Belbuca's start has also been slower-than-expected due to pain market pressure. We remind investors that BioDelivery had reacquired worldwide rights to Belbuca in January from Endo Pharmaceuticals, a subsidiary of Endo International. As a result of this reacquisition, the company started recording product revenues for Belbuca against royalties recorded previously.

The prescription volumes for Belbuca have shown improvement in the past couple of quarters following the re-acquisition. Sales of Belbuca improved sequentially in the fourth quarter of 2017. We believe this positive trend will continue through 2018. Belbuca was made commercially available in Canada for severe pain in January 2018, which should support further sales growth of the drug.

Earlier this week, BioDelivery Sciences announced the appointment of Herm Cukier as its new chief operating officer. Cukier was until now serving as the senior vice president at Allergan AGN . He will be introduced on BioDelivery's first-quarter conference call.

Earnings Whispers

Our proven model shows that the stock is likely to beat on earnings this quarter as it has the right combination of the two key ingredients - a positive  Earnings ESP  and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen.

Zacks ESP:  BioDelivery has an Earnings ESP of +8.70%, representing the difference between the Most Accurate estimate of a loss of 21 cents and the Zacks Consensus Estimate of a loss of 23 cents. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank:  BioDelivery has a Zacks Rank #3. The combination of BioDelivery's Zacks Rank #3 and positive ESP makes us confident of an earnings beat in the upcoming release.

Sell-rated stocks (Zacks Rank #4 or 5), on the other hand, should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Other Stocks That Warrant a Look

Here are some other health care stocks with the right combination of elements to beat estimates this time around:

Paratek Pharmaceuticals, Inc. PRTK has an Earnings ESP of +7.31% and currently carries a Zacks Rank #3. The company is scheduled to release first-quarter results on May 9.

Keryx Biopharmaceuticals, Inc. KERX has an Earnings ESP of +11.69% and currently carries a Zacks Rank #3. The company is scheduled to release first-quarter results on May 10.

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Allergan plc (AGN): Free Stock Analysis Report

BioDelivery Sciences International, Inc. (BDSI): Free Stock Analysis Report

Keryx Biopharmaceuticals, Inc. (KERX): Free Stock Analysis Report

Paratek Pharmaceuticals, Inc. (PRTK): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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