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UPDATE: Morgan Stanley Starts Keryx Biopharmaceuticals (KERX) at Underweight

August 13, 2015 7:20 AM EDT
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Price: $3.36 --0%

Rating Summary:
    6 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 10
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(Updated - August 13, 2015 11:53 AM EDT)

Morgan Stanley initiated coverage on Keryx Biopharmaceuticals (NASDAQ: KERX) with an Underweight rating and a price target of $3.00. Analyst Andrew S Berens pointed out Auryxia challenges in dialysis, and he said a survey suggests payors may balk at Auryxia's price gap, as the company seeks to expand in chronic kidney disease (CKD).

"Our main concerns center on commercial risk to the company's strategy to position Auryxia, a phosphate binder used in dialysis, as a better oral iron in pre-dialysis chronic kidney disease (CKD). Auryxia costs ~$5,000 annually vs. ~$1,500 for the highestpriced intravenous iron and $60 for ferrous sulfate. Our diligence and July
2015 AlphaWise survey of 50 nephrologists suggest payors are likely to balk at the price gap. In dialysis, weak positioning and docs' lack of enthusiasm has hurt Auryxia sales, with generic Renvela, its best-in-class competitor, expected shortly," said Berens.

"Positioning Auryxia as a better oral iron in CKD makes clinical sense, since phosphate binding is not currently practiced. However, commercially, we believe the drug could face significant pushback given the disparity in pricing between phosphate binders and oral iron," continued the analyst.

Berens added, "Auryxia sales have disappointed in the dialysis launch, primarily because of unfavorable treatment by payors and tempered enthusiasm by docs. This is unlikely to change with the expected availability of generic Renvela."

For an analyst ratings summary and ratings history on Keryx Biopharmaceuticals click here. For more ratings news on Keryx Biopharmaceuticals click here.

Shares of Keryx Biopharmaceuticals closed at $6.46 yesterday.



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