BST Trade Alert – March 26, 2015
Recommendation:
Buy Keryx Biopharmaceuticals $NASD: KERX up to $14.00 per share.
About the Company:
Keryx is a biopharmaceutical company focused on innovative therapies for the treatment of renal disease.
Their product, Auryxia (ferric citrate), received marketing approval from the FDA in September 2014 for the control of serum phosphorus levels in patients with chronic kidney disease, or CKD, on dialysis.
They’re currently working to commercialize the Auryxia in the US.
They also received marketing approval for the drug in Japan. They have partnered with JT and Torii, a Japanese firm that’s paying Keryx licensing payments as they commercialize the drug in Japan.
KERX is currently losing money as the ramp up their commercialization efforts for Auryxia. But a portion of these costs are being offset by the licensing payments they receive from their Japanese partner.
Right now, they have about $86 million in cash. And they have enough cash to continue operations for at least two years without raising additional money.
About the Drug:
Auryxia received marketing approval from the US FDA in September 2014 for the control of serum phosphorus levels in patients with CKD on dialysis.
Lowering phosphorus levels in patients with chronic kidney disease has beneficial effects on the patient’s heart and blood vessels.
In addition to the effects on serum phosphorus levels, Auryxia’s pharmacodynamic properties resulted in increased ferritin, iron and TSAT that other drugs that control phosphorus don’t have.
About the Market for This Drug:
The National Kidney Foundation estimates nearly 450,000 Americans live with end-stage renal failure and require dialysis. And 1 in every 3 Americans is at risk for kidney disease.
About the Potential Catalyst:
Keryx has submitted a MAA with the EMA for the approval of Auryxia in patients with CKD. So, Europe could be another market they can develop or they can bring on a new partner that would generate more licensing fees.
They’ve also initiated a new phase 3 study of Auryxia for the treatment of iron deficiency anemia in patients with stage 3-5 kidney failure.
If the testing is successful, then the market for Auryxia is opened up to many more people that are suffering from kidney failure but are not yet at end stage kidney failure.
About the Shares:
KERX is currently trading for $12.43. It’s down 6.3% this year and 31.5% below the 52-week high.
This is one biotech stock with a drug that’s been approved by the FDA that hasn’t shot sky high over the last year… that’s unusual.
But it’s likely to change as they expand into Europe and gain approval to expand sales of the drug beyond patients with end stage kidney failure.
Key Facts:
Company: Keryx Biopharmaceuticals
Ticker: KERX
Recent Price: $12.78
Market Cap: $1.37 billion
Average Daily Volume: 1.71M shares
Chart:
Category: BST Trade Alert
