Shares of Relypsa Inc (NASDAQ:RLYP) are dropping sharply in afternoon trading as the stock gives back nearly all of its gains from last week.
While there has been no major news to spark this drop, shares have gradually been falling throughout the trading day. This is all despite several quite optimistic price targets recently placed on the company by analysts.
The likely culprit for todays decline is a report published by Morgan Stanley this morning titled, ‘FDA Review Documents Cast Shadow of Doubt Over Meaningful Label Revisions’.
The stock is down 11.85% or $2.84 after the news, hitting $21.13 per share. About 1.72M shares traded hands. RLYP has declined 27.08% since April 27, 2015 and is downtrending. It has underperformed by 26.18% the S&P500.
Out of 7 analysts covering Relypsa (NASDAQ:RLYP), 6 rate it “Buy”, 1 “Sell”, while 0 “Hold”. This means 86% are positive. $75 is the highest target while $15 is the lowest. The $47.80 average target is 126.22% above today’s ($21.13) stock price. Relypsa was the topic in 9 analyst reports since July 30, 2015 according to StockzIntelligence Inc. Guggenheim initiated the stock on November 5 with “Buy” rating. Morgan Stanley initiated it with “Underweight” rating and $15 target price in an August 13 report. Wedbush maintained the shares of RLYP in a report on October 22 with “Outperform” rating. Finally, Citigroup initiated the stock with “Buy” rating in a September 3 report.
The institutional sentiment decreased to 2.28 in Q2 2015. Its down 0.28, from 2.56 in 2015Q1. The ratio dived, as 13 funds sold all Relypsa Inc shares owned while 26 reduced positions. 29 funds bought stakes while 60 increased positions. They now own 35.59 million shares or 0.00% more from 35.58 million shares in 2015Q1.
New Leaf Venture Partners L.L.C. holds 4.85% of its portfolio in Relypsa Inc for 221,204 shares. Great Point Partners Llc owns 240,000 shares or 3.1% of their US portfolio. Moreover, Perceptive Advisors Llc has 2.27% invested in the company for 1.14 million shares. The New York-based Orbimed Advisors Llc has invested 2.05% in the stock. Jhl Capital Group Llc, a Illinois-based fund reported 825,000 shares.
Since March 5, 2015, the stock had 1 insider buy, and 13 insider sales for $4.88 million 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 $984.44 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.