Why BioDelivery Sciences International, Inc. Stock Soared

BioDelivery Sciences shares soar after delivering positive top-line phase 3 data from a key pipeline product. Find out what this means for BioDelivery and investors.

Jul 7, 2014 at 3:04PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of BioDelivery Sciences (NASDAQ:BDSI), a specialty pharmaceutical company focused on developing therapies to manage pain care and oncologic support, surged higher by as much as 20% after it announced positive top-line phase 3 results involving BEMA buprenorphine for chronic pain patients that had previously been treated with an opioid-based therapy.

So what: According to the company's early morning press release, it and development part Endo Pharmaceuticals, a subsidiary of Endo Health Solutions (NASDAQ:ENDP), reported that BEMA buprenorphine met its primary endpoint of a statistically significant reduction in pain as measured by the mean change in the daily average pain numerical rating scale versus the placebo over a 12-week period. In addition, BEMA buprenorphine also met a number of key secondary endpoints. BioDelivery and Endo are both expected to meet with the Food and Drug Administration to discuss and subsequently file a new drug application as soon as possible. In lieu of the successful phase 3 results BioDelivery Sciences notes that it triggered a $10 million milestone payment from Endo.

Now what: Chronic pain management is a huge market opportunity for BioDelivery Sciences, but it's also a very crowded field, so even having Endo in its corner won't necessarily guarantee BEMA buprenorphine success. A lot will depend on drug pricing, insurance coverage, and physicians' willingness to prescribe the product. Although the company is being projected to turn the corner to profitability next year by Wall Street, I'm a bit concerned about its huge run-up into today's results. Given the crowded treatment field behind chronic pain patients, I'd suggest observing BioDelivery Sciences from the sidelines until we've witnessed a substantial pullback.

BioDelivery Sciences may have surged, but the growth potential behind this new product could leave it eating dust! 
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not just how we treat a common chronic illness but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multibagger returns you will need The Motley Fool's new free report on the dream team responsible for this game-changing blockbuster. CLICK HERE NOW.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers