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June Data On Relypsa's Veltassa 'Very Encouraging'

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June Data On Relypsa's Veltassa 'Very Encouraging'
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Relypsa Inc (NASDAQ: RLYP) announced data on Veltassa for oral suspension at the National Kidney Foundation 2016 Spring Clinical Meetings in Boston. Veltassa June numbers were very encouraging, Brean Capital’s Difei Yang said in a report. He reiterated a Buy rating for the company, with a price target of $26.

Veltassa June data was released four days earlier than anticipated. “June paid prescription growth clearly departed from earlier trends to the upside,” analyst Difei Yang wrote.

What The Data Indicated

June data showed that 1,531 new patients had started taking Veltassa with a free starter supply. Growth in new patients was stable. On the other hand, paid prescriptions grew to 1,723 during the month, representing an increase of 497 prescriptions, “which is a drastic departure from 200-350 units of growth per month since launch,” Yang pointed out.

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If growth were to continue at this pace for another two to three months, “we would be confident to call that the growth of Veltassa has entered into the hockey stick region of a new pharmaceutical product growth curve,” the analyst commented.

What It Means

June data could possibly indicate “an inflection point of accelerated growth” in Veltassa. If data-points over the next couple of months confirmed the trend, investors are likely to consider the long-term product potential.

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Latest Ratings for RLYP

DateFirmActionFromTo
Sep 2016BTIG ResearchTerminatesNeutral
Aug 2016Stifel NicolausDowngradesBuyHold
Aug 2016OppenheimerTerminatesOutperform

View More Analyst Ratings for RLYP
View the Latest Analyst Ratings

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