Relypsa's (RLYP) Veltassa Expected to Benefit from Delay to AstraZeneca's (AZN) ZS-9 - BTIG

BTIG affirms Relypsa (Nasdaq: RLYP) at Buy with a price target of $35 following recent conversations with management.

Analyst Timothy Chiang commented, We recently hosted a Q&A session with Relypsa’s senior management team to discuss a number of key items including the recent CRL received by AstraZeneca (NYSE: AZN) on ZS-9 and what impact that will have on its Veltassa (for the treatment of hyperkalemia). In addition, we discussed other items including the current reimbursement environment for Veltassa, as well as what the key inflection points might be.

In sum, while payor headwinds are likely to remain, we think it may now be less of challenge to gain formulary access, especially now that its competitor (ZS-9) has been delayed.

We expect Veltassa prescription trends to continue to rise steadily in 2016, with a pick up occurring in the second half as insurance coverage is attained. In addition, we expect an FDA decision within the next 4-6 months on the Co.’s proposed labeling changes (to narrow the dosing separation window for Veltassa with other medications). Overall, we remain positive on RLYP shares and believe Veltassa is well-positioned to generate meaningful sales longer term.

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

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