Relypsa Inc (RLYP) Shares Plunge As Markets Fall and Favus Issues Bearish Calls

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Shares of Relypsa Inc (NASDAQ:RLYP) are trading substantially lower this morning as the overall market suffers once again on China worries. Complicating the general market selloff are bearish calls by Favus Institutional Research CEO Elliot Favus related to Relypsa Inc (NASDAQ:RLYP) shares.

While there doesn’t seem to me much new coming out of Favus’ report, combined with the market downturn, the report seems to have sparked a major selloff of shares. While the stock is still trading within the range it has been over the last four weeks, a continued drop under $4 could mean trouble. Shares of Relypsa Inc (NASDAQ:RLYP) are trading down over 85% since July, as investors hope for some positive news soon. The stock is down over 30% in the last two and a half weeks alone. The stock has fallen 15.67% or $3.84 following this negative news, hitting $20.66 per share. Approximately 54,473 shares traded hands. RLYP shares have declined 30.73% since June 3, 2015 and are currently downtrending. It has underperformed the S&P500 by 26.04%.

From a total of 8 analysts covering Relypsa (NASDAQ:RLYP) stock, 7 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 88% of the ratings are positive. The highest target price is $86 while the lowest target price is $15. The mean of all analyst targets is $52.17 which is 152.52% above today’s ($20.66) stock price. Relypsa was the topic of 11 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. H.C. Wainwright initiated shares on December 17 with a “Buy” rating. Morgan Stanley initiated shares with a”Underweight” rating and a $15 target share price in their report from an August 13. Cantor Fitzgerald reinitiated RLYP stock in a recent report from October 26 with a “Buy” rating. Finally, Citigroup initiated the stock with a “Buy” rating in a report they issued on a September 3.

The institutional sentiment decreased to 1.42 in Q2 2015. It’s down 0.86, from 2.28 in 2015Q2. The ratio turned negative, as 26 funds sold all their Relypsa Inc shares they owned while 27 reduced their positions. 18 funds bought stakes while 57 increased their total positions. Institutions now own 36.63 million shares which is 2.92% more than the previous share count of 35.59 million in 2015Q2.

Great Point Partners Llc holds 5.63% of its total portfolio in Relypsa Inc, equating to 769,047 shares. Jhl Capital Group Llc owns 1.80 million shares representing 3.68% of their total US portfolio. Moreover, Perceptive Advisors Llc has 1.46% of their total portfolio invested in the company, equating to 987,942 shares. The New York-based Orbimed Advisors Llc has a total of 1.38% of their portfolio invested in the stock. New Leaf Venture Partners L.L.C., a New York-based fund reported 65,961 shares owned.

Since March 5, 2015, the stock had 1 buying transaction, and 9 sales for a total of $5.05 million in net activity. Orbimed Advisors Llc bought 500,000 shares worth $6.28M. Ball Kristine M sold 646 shares worth $14,832. Lockey Claire sold 522 shares worth $12,888. Stahl Wilhelm sold 522 shares worth $12,894. The insider Orwin John A sold 5,000 shares worth $124,183.

Relypsa, Inc. is a biopharmaceutical firm focused on the development and commercialization of non-absorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases. The company has a market cap of $861.35 million. The Company’s lead product candidate, Patiromer for Oral Suspension is for the treatment of hyperkalemia, a life-threatening condition defined as abnormally elevated levels of potassium in the blood. It currently has negative earnings. The Company’s New Drug Application (NDA) for Patiromer FOS was accepted for filing by the United States Food and Drug Administration, or FDA.

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