Oppenheimer Survey of Patient Therapy Combinations Show Relypsa (RLYP) Concern Overblown
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Oppenheimer Biotech analyst, Ling Wang, published a note highlighting a possible overreaction to Relypsa (NASDAQ: RLYP) conference call which discussed Veltassa being required to post a warning label on bottles. She discussed a market research survey that indicates the problem may only impact 2% to 5% of the population making the 25% selloff overdone. Veltassa is expected to be available in the U.S. by the first week of January 2016. Veltassa was priced at $595 for 30-day packs in out-patient and $119 for four packs in hospitals.
RLYP hosted a conference call to discuss the approval of Veltassa for treating hyperkalemia. Veltassa requires a box warnings to take Veltassa, 6 hours apart from other oral medications. With share decline of >25%, the market reaction on Veltassa's box warning appears overdone.
A market research survey of roughly 1000 patients charts indicates that ~95-98% of the patients currently take drugs QD or BID. These should not have a problem adding Veltassa (QD). Additionally, Oppenheimer’s physician consultants also confirm that the six-hour separation time is easily overcome.
RLYP is conducting a human drug-drug interaction (DDI) trial (not required by the FDA) to evaluate the potential binding of Veltassa with 12 oral medicine. The human DDI trial test results are expected early next year. The company will potentially discuss with FDA for updating the boxed warning information from six-hour to three hours based on the test results.
No change to Outperfom rating or $55 price target.
Shares of Relypsa, Inc. closed at $11.76 yesterday.
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