Brean Initiates Relypsa With Buy Rating, $26 Target

On Tuesday, Brean Capital issued a company note on Relypsa, Inc.

, initiating coverage on the biopharmaceutical company after recent analysis of their drug Veltassa, which treats hyperkalemia. Currently, analysts at Brean Capital rate Relypsa as a Buy with a $26 price target. Difei Yang, an analyst at Brean Capital, wrote, "Relypsa...remains a leader in the discovery, development, and commercialization of polymer-based medications...We believe that there is a large market for Veltassa due to limited competition and unmet medical needs." Analysts at Brean Capital gave 2 reasons why they see strength in Relypsa: 1. Strong efficacy and safety of Veltassa Brean Capital noted that in clinical trials Veltassa demonstrated a stronger efficacy profile with fewer side effects than the placebo group. Furthermore, Veltassa's biggest competitor in the market, Kayexalate, has caused serious side effects such as bleeding and intestinal necrosis. Because this drug has proven the ability to meet the need of patients with hyperkalemia while having limited cases of severe side effects, it has the potential to address a sizable market and drive revenue and profit margins for Relypsa. 2. Drug pipeline Analysts highlighted that Relypsa is awaiting approval of another hyperkalemia drug, ZS-9 PDUFA. If this drug is approved Relypsa may have significant control of the hyperkalemia market and be able to achieve pricing power. Relypsa last traded at $12.95.