BTIG Positive on Relypsa's (RLYP) Veltassa Following Recent Meeting with CEO, CFO; Affirms at 'Buy'

BTIG reaffirms Relypsa, Inc. (Nasdaq: RLYP) with a Buy rating and $45 price target following a recent meeting with the company's management. The firm met with Relypsa CEO John Orwin and CFO Kristine Ball.

Analyst Timothy Chiang noted the Relypsa executives highlighted the Co's ongoing launch of Veltassa (for the treatment of hyperkalemia), with its 133-person sales force mainly targeting specialists in the nephrology and cardiology segments. While the launch is still in its early days, we believe physician interest is strong, as Veltassa is the first new treatment to be approved in over 50 years. Overall, we came away positive from our meeting.

Veltassa (approved on October 21, 2015, for the treatment of hyperkalemia) is the first new potassium binder to be approved in over 50 years. With ~3 million chronic kidney disease patients suffering from elevated potassium levels, we believe Veltassa will generate annual sales of ~$549 million by 2020. Veltassa is currently being launched via a 133-person sales force and with the help of Sanofi’s (NYSE: SNY) cardio-renal sales group in the US. Based on an estimated price of ~$600 per month for Veltassa and initial gross to net discounts of ~25%, our 2016-2020 sales estimates are $35.9 million, $113 million, $236 million, $377 million, and $549 million, respectively, Chiang noted.

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