Keryx Biopharmaceuticals Inc fka KERX

[H2R]

SA Entry on KERX:

Therapy: Auryxia (ferric citrate)

Disease: chronic kidney disease (CKD)

News: Keryx Biopharmaceuticals dropped more than 17% on Tuesday on increased volume despite the FDA approval of Auryxia (ferric citrate) for the treatment of iron deficiency anemia in adults with chronic kidney disease (CKD) who are not on dialysis.

The FDA first approved the product in September 2014 for the control of serum phosphorus levels in CKD patients on dialysis.

The company says half of the 30M Americans with CKD are iron deficient.

Analysis: As we have noted earlier, the approval in this indication would significantly expand Auryxia’s addressable market. The sell-off on the approval therefore comes as a surprise. We believe the sell-off was mainly due to the earnings miss and guidance withdrawal. While the news was disappointing, we would not place too much weight on earnings at this stage and look at the sharp pullback as a buying opportunity. One worrying thing is that Keryx has been struggling to manage gross-to-net. Management needs to get their act straight.

https://seekingalpha.com/article/4122701-daily-pharma-scoop-portola-upside-novartis-reports-positive-cosentyx-data-keryx-tumbles