Janney Montgomery Scott Upgrades BioDelivery Sciences International (BDSI) to Buy

Janney Montgomery Scott upgraded BioDelivery Sciences International (NASDAQ: BDSI) from Neutral to Buy with a price target of $4.00 as Belbuca will be added as the preferred brand over Butrant on United Healthcare Formulary.

Analyst Ken Trbovich commented, "Endo International plc (NASDAQ: ENDP) has not yet announced, but clearly won preferred status for Belbuca relative to market leader Butrans on the Prescription Drug List at United Healthcare. ENDP's initial launch has been disappointing, but the United contract improves the outlook and is set to take effect on January 1, 2017. Additionally, BDSI has announced five contract wins for Bunavail since July. This places BDSI on a path to show meaningful growth for Bunavail growth in 2017. As a result, our preliminary 2017 BDSI revenue estimate of $25 mln shows significant improvement from our current 2016 estimate of $15 mln. Based on the improved outlook we are raising our rating to Buy and maintaining our $4 fair value estimate."

For an analyst ratings summary and ratings history on BioDelivery Sciences International click here. For more ratings news on BioDelivery Sciences International click here.

Shares of BioDelivery Sciences International closed at $2.45 yesterday.

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