Expert Financial Analysis and Reporting

Galenica has announced a tender offer to acquire all shares of Relypsa for $32 per share which on a fully diluted share basis is $1.53 billion. The Boards of Directors of both Relypsa and Galenica have approved the terms of the merger agreement, and the Board of Directors of Relypsa has resolved to recommend that […]

Investment Thesis Veltassa continues its slow but steady launch. The May results were in line with my projections and I think they were also generally in line with those of the Street. In the first year of a launch the new reality is that managed care sets up significant reimbursement hurdles. We are seeing this […]

Investment Thesis The receipt of a CRL for ZS-9 delays its possible approval by perhaps one year or more which substantially enhances the first mover advantage of Veltassa. AZN comments on the CRL minimize the potential that the mechanism of action of ZS-9 (which exchanges sodium for potassium) is a safety concern, but I am […]

Investment Thesis for Relypsa The investment issues for Relypsa are complex. Its key drug Veltassa was launched in December of 2015 so that we are now about five months into the launch. Over the last several years it has become increasingly apparent that there is a new paradigm for drug introductions. Managed care has been […]

Investment Perspective Investors are closely watching the launch progress of Veltassa following its December 2015 introduction. Medicare and managed care have set up barriers to prescribing that makes getting a prescription filled for a new drug laborious and time consuming and sometimes futile. With very few exceptions, most new product launches have disappointed investors to […]

Reason for Report Relypsa shares surged from about $15.00 at 1 PM on Thursday April 7 to close at $24.34. This move was based on a report published by Reuters at 12:54 PM. What the Reuters News Article Said “Relypsa Inc., a U.S. maker of treatments for blood disorder hyperkalemia, is exploring a sale following […]

Investment Perspective Investors are closely watching the launch progress of Veltassa follwoing its December 2015 introduction. Medicare and managed care have set up barriers to prescribing that makes getting a prescription filled for a new drug laborious and time consuming and sometimes futile. With very few exceptions, most new product launches have disappointed investors to […]

Investment Perspective Relypsa is about two months into the launch of Veltassa, its first product. There was a time (several years ago) when a new product launch coincided with excellent stock performance as one might expect. Paradoxically, now launches more often than not lead to disappointing stock performance. The most important reason for this in […]

Investment Thinking in Brief I am beginning coverage of Relypsa (RLYP) with a Buy recommendation. At this point in time, the stock is facing two major uncertainties. The launch of its first drug Veltassa (patiromer) began in December, 2015 so that the Company is fighting through all types of reimbursement and formulary access hurdles with managed […]

ZS Pharma Investment Thesis The Hyperkalemia Market Opportunity is Huge; There Are No Good Current Drugs The most important piece of the investment thesis for ZS Pharma is the sheer size of the opportunity for treating hyperkalemia. In my recent report, Effective Treatment of Hyperkalemia Promises to be a Multi-billion Opportunity, I provided a framework for […]