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Keryx Bio-Pharmaceuticals www.christopherleesusanto.com

Keryx Bio-Pharmaceuticals

With the current market capitalization of $380.27 million, Keryx (NASDAQ: KERX) might not be your cheapest company to buy in terms of having a stake in their growth story.

With growth story like this, there are risks involved. Current earning is still negative although they generated $4.8 million in sales in 4Q 2015, which represented a 46% increase in volume from the third quarter to the fourth quarter.

The near-term catalyst for this stock would revolve around:

  1. Getting new partners to commercialize Auryxia in European Union region
  2. Strengthening their financial position by cutting costs and eventually achieving positive cash flow
Auryxia for Phosphate and Anemia Management www.christopherleesusanto.com

Auryxia for Phosphate and Anemia Management

Picture source: Keryx Corporate Presentation

The long-term catalyst for this stock would revolve around:

  1. Using Auryxia to treat patients in pre-dialysis stage 3-5 of chronic kidney disease (CKD)- on top of the current  controlling of serum phosphorus levels in CKD patients on dialysis

Currently, Keryx still is the  first and only FDA-approved oral iron in the marketplace.

Sales Force Expansions Complete Keryx Bio Pharmaceuticals www.christopherleesusanto.com

Sales Force Expansions Complete

Picture source: Keryx Corporate Presentation

A significant amount of time needs to occur to make sure that the sales team are building the needed awareness and that appreciation with Auryxia.

They have expanded and completed the expansion of the sales force, which is going to allow their sales teams to really have much more efficient territories and spend more time with the nephrologists as well as the dietician.

This upcoming quarter would be the first time that all the new sales representative are going to be in their new territories.

Auyxia Long Term Growth www.christopherleesusanto.com

Auyxia Long Term Growth

Picture source: Keryx Corporate Presentation

This my take, ultimately investing in Keryx is a long term play which has many risks involved- if we are right, we will be well rewarded and if we are wrong, the downside risks are pretty limited at this current price levels.

Disclosure: I am long on KERX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. 

Important: Please read my disclaimer.

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