Market Overview

Cantor Doesn't Think BioDelivery Sciences Should Be Cutting To Grow, Downgrades Stock To Hold


BioDelivery Sciences International, Inc. (NASDAQ: BDSI) reported in-line 1Q16 EPS of ($0.36). Cantor Fitzgerald’s Chiara Russo downgraded the rating for the company from Buy to Hold, while reducing the price target from $9 to $5. The analyst commented that while there seems to be “underlying fundamental value,” the stock is more driven by sentiment.

Cutting SG&A Could Hinder Top-Line Growth

BioDelivery Sciences was following a strategy of achieving profitability by cutting SG&A rather than R&D. Analyst Chiara Russo said, however, that this could hinder top-line growth.

“Our comfort level around the concentration of RXs from the exclusive TN Medicare contract continues to erode, and we question management's ability to monetize Bunavail given the cut in SG&A, Q/Q RX decline, and continued competitive pressures,” Russo wrote.

Prudent investors are likely to look for alternatives in view of the disconnect between BioDelivery Sciences’ fundamentals and sentiment, the analyst noted.

Pipeline Issues

BioDelivery Sciences’ commercial partner Endo International plc - Ordinary Shares (NASDAQ: ENDP) admitted to the slower-than-anticipated progress in the launch of Belbuca. While both companies attributed this to “a cooling of the opioid space from the CDC issued guidance,” Russo believes it to be product specific.

Although BioDelivery Sciences’ pipeline consists of several products, they are not meaningfully strong commercial assets, the analyst commented.

Latest Ratings for BDSI

Dec 2019SunTrust Robinson HumphreyMaintainsBuy
Mar 2019SunTrust Robinson HumphreyInitiates Coverage OnBuy
Jan 2019Janney CapitalAssumesBuy

View More Analyst Ratings for BDSI
View the Latest Analyst Ratings


Related Articles (BDSI + ENDP)

View Comments and Join the Discussion!

Posted-In: Cantor Fitzgerald Chiara RussoAnalyst Color Downgrades Price Target Analyst Ratings

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at