Roth Capital Remains Positive on Keryx (KERX) Following Q3 Results, Update

Roth Capital affirmed Keryx Biopharma (Nasdaq: KERX) at Buy with a price target of $32 following Q3 results reported earlier Thursday. Keryx posted Q3 loss of $0.38 per share, while Roth was looking for a loss of just $0.24 per share.

Analyst Joseph Pantginis commented, The third quarter represented a successful period for KERX, with the approval of Ferric Citrate in September 2014 for the control of serum phosphorus levels for chronic kidney disease patients who are on dialysis. The company has now completed hiring of its sales force and plans to launch Ferric Citrate in mid- December.

We believe Ferric Citrate (FDA approved brand name pending) is uniquely positioned as it is the only phosphate binder with the properties of iron sparing and anemia benefit. Along with patents to 2024, the company is also seeking patent term extensions through 2028. We also believe there are also very high barriers to entry to potential generic filers. For example, Renvela generics could have been made since March 2014, but none are available yet. Ferric Citrate wholesale annual cost (WAC) per pill pricing will be $4.21. The dosing regimen was ~8 pills per day in the Phase III. Competitors' pricing and dosing regimens are: 1) Renvela – 8-9 pills per day; WAC: $3.86 per pill, 2) Fosrenol – 3-4 pills per day; WAC: $8.65 per pill, 3) Velphoro - 3-4 pills per day; WAC: $9.50 per pill. KERX has also initiated a Phase III trial of Ferric Citrate for the treatment of iron deficiency anemia in Stage 3-5 CKD patients who have not responded to oral iron therapy. The study could pave the way to a label expansion for Ferric Citrate going forward.

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

Keryx Biopharmaceuticals closed at $15.37 yesterday.

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