Cantor Thinks Relypsa's Veltassa Opportunity Is Still Developing

Relypsa Inc RLYP released the April sales data for Veltassa.

Cantor Fitzgerald’s Mara Goldstein reiterated a Buy rating on the company, with a price target of $41.

Developing Opportunity

“Our view has been that the Veltassa launch would be the biggest risk to Relypsa shares, and this would drive volatility. We continue to think this is the case, but see the opportunity developing as the market evolves,” the analyst stated.

Goldstein noted that although launch execution posed a risk for Relypsa’s shares, the current stock valuation already reflects this.

The analyst believes that Veltassa sales are likely to remain skewed until the end of the year, and noted that the prescriptions numbers have so far been in line with the estimates.

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April Data

Relypsa reported a 31-percent increase in outpatient prescriptions in April, as compared to March.

The company also stated that 1,216 starter packs and 288 hospital/institutional units had been dispensed during the month.

“While the growth on the starter packs was sequentially down this month, the outpatient prescriptions grew at a solid pace,” Goldstein pointed out.

Goldstein expects the prescription data in the first six months of the launch of the product to remain “choppy.”

The analyst believes that the number of prescriptions might have been affected by the spring meeting of the National Kidney Foundation and the meetings of the America College of Cardiology, “with prescribers out of the office for a number of days.”