BioDelivery Sciences International, Inc. (NASDAQ:BDSI) has agreed to let CVS Health Corp (NYSE:CVS) continue accessing its pain management product Belbuca and Opioid dependence product Bunavail through 2020. The extension follows reacquisition of worldwide rights to the drug from Endo Pharmaceuticals early in the year.
Growing sales
Sales for Belbuca have reached their highest level since its launch last year. BioDelivery says sales for the Belbuca clocked highs of 1,657 this month and continue to grow. The company expects the new manage care contract with the CVS/Caremark to lead to further gains.
“We are pleased with the momentum we are beginning to see with BELBUCA as well as the execution of new managed care contracts, such as the CVS/Caremark agreement which goes through 2020. We have seen an overall increase in BELBUCA sales since launching the products […],” said CEO, Mark Sirgo.
For the first three months of the year, Bunavail generated sales of $43.2 million a 42.4% year over year increase. Belbuca, on the other hand, generated sales of $4.6 million allowing the company to post Q1 revenue of $29.5 million. Senior vice president of corporate and business development, Al Medwar attributes the increase to a targeted strategy deployed by the company upon reacquiring the product.
Targeted Sales Strategy
The targeted strategy involves focusing on a smaller group of physicians who BioDelivery says serves as the best opportunity for accelerating adoption of Belbuca. Some of these physicians include prescribers of long-acting opioids as well as those who administer Buprenorphine.
BioDelivery is also exploring other commercial options as it looks to bolster sales for the two drugs both in the U.S and abroad. Securing new or improved positioning on other managed care contracts is top on the agenda even though CVS/Caremark represents a significant portion of people covered in the U.S. Some of the companies that the firm is in discussion with as potential managed care partners include Cigna, ProCareRx, EnvisionRx, and Kaiser.
BioDelivery stock was up by 3.51% in Friday’s trading session ending the week at $2.95 a share.
