Investors of Keryx Biopharmaceuticals Worried Over Supply Interruption of Auryxia And Guidance Withdrawal

Keryx Biopharmaceuticals, Inc. KERX revealed that there is an imminent supply interruption of Auryxia (ferric citrate) tablets due to a production-related issue converting active pharmaceutical ingredient (API) to finished drug product. As a result, the company also withdrew the outlook for the current year sending the stock down by more than thirty percent in the pre-market trading. Keryx indicated that it could make Auryxia available to patients when supply of Auryxia is back to adequate levels. The expects the situation to ease in the fourth quarter of the current year. Its CEO, Greg Madison, said, "We take our responsibility to patients and the treating community very seriously and recognize the impact this interruption of supply will cause for patients and their healthcare providers. Our field-based teams have been doing an outstanding job educating the community on the benefits of Auryxia and will be a critical resource during this supply interruption as we continue to support healthcare providers and their patients with hyperphosphatemia." The company also reported second quarter results incurring a net loss of $44.7 million, or $0.42 loss per share, wider than a net loss of $26.9 million, or $0.26 loss per share, for the comparable period in 2015. Keryx' total revenues were approximately $9.3 million, higher than the $2.5 million recorded during the second quarter in 2015. The company indicated that it had deferred revenue of $3.4 million at the end of the second quarter representing Auryxia product shipped to customers and not yet dispensed as a patient prescription. Following the news, investors dumped the stock in the pre-market trading by dragging down $2.39 or 32.47 percent at $4.97.