From the Motley Fool
In late 2014, Keryx Biopharmaceuticals received marketing approval in the United States for its first drug, Auryxia, which is for controlling phosphorus levels in the blood of patients with chronic kidney disease. The company has no pipeline and is completely dependent on sales of Auryxia. Investors were fine with that reality, especially considering peak sales of the lone drug were originally pegged as high as $1 billion in the United States. Throw in royalties from sales in Japan and the potential for royalties or direct sales in Europe, where the drug is approved but waiting for a commercialization partner, and it's easy to explain investor enthusiasm.
Unfortunately, prescription volumes have largely failed to impress. As if a slow start weren't enough, sales took a hit in the second and third quarters of 2016 after the company's lone manufacturing partner encountered issues finishing the product. The potential blockbuster has netted just $18.9 million in U.S. sales through the first nine months of 2016, despite having been on the market for 22 months.
The good news is that a new manufacturing partner was announced in early November, which should re-establish supply and the drug's growth trajectory. That will help to boost sales next year. Additionally, if Keryx Biopharmaceuticals can find a commercialization partner in Europe, then it could be in store for an upfront collaboration payment, in addition to royalties and/or direct sales.
It's too soon to say if the short disruption in Auryxia supply will have a long-term impact on prescription volumes, but the company is entering 2017 with momentum relative to a year bogged down by hiccups. In other words, the bar is pretty low. If Keryx Biopharmaceuticals really does have a potential blockbuster on its hands, then revenue could double in 2017.
