BioDelivery Sciences (BDSI) Declines: Why Bulls Don’t Mind


BioDelivery Sciences International, Inc. (NASDAQ: BDSI)

BioDelivery Sciences had an incredible day in the market yesterday after one of its subsidiaries received FDA approval. However, the story in the market is far different today. Unfortunately, BDSI is realizing declines. Today, we’ll talk about the FDA approval that was received, what we’re seeing in the market today, why today’s market activity isn’t concerning for the bulls and what we can expect to see moving forward.


Yesterday, Endo Pharmaceuticals, a subsidiary of BDSI announced that the United States Food and Drug Administration had made the decision to approve BELBUCA. BELBUCA is a buccal film used by patients who are suffering from chronic pain that requires around the clock opiod treatment and for whom alternative treatments have proven to be ineffective. This is the first ever buprenorphine that was designed with a dissolving film in order to be absorbed through the cheek lining. As a result of the FDA approval, BDSI is expecting for BELBUCA to be available in the United States market place as soon as the first quarter of 2016. During the announcement, Dr. Richard L. Rauck, Director of the Carolinas Pain Institute offered the following statement…

The availability of new, convenient and flexible treatment options is important for patients whose lives are burdened by chronic pain, a debilitating condition that affects more Americans than diabetes, heart disease and cancer combined… BELBUCA provides a unique approach for chronic pain management, combining the proven efficacy and established safety of buprenorphine with a novel buccal film delivery system that adds convenience and flexibility for both opiod-naive and opioid-experienced patients who require around the clock treatment and for whom alternative treatment options are inadequate, BELBICA offers appropriate, consistent pain relief and a low incidence of typical opiod-like side effects.”

What We’re Seeing In The Market Today

While BDSI climbed in the market yesterday following the news, the story hasn’t been quite the same today. In fact, we’re seeing rather large declines on the stock today. Currently (10:11), BDSI is trading at $5.32 after a loss of 6.99%.

Why BDSI Bulls Don’t Mind Today’s Declines

Although we are seeing declines today, BDSI bulls really don’t mind. The reason is simple. The reality is that price movement generally happens through a series of overreactions. So, it’s natural that after the massive gains realized yesterday we would generally see declines that bring the stock back to a more sustainable rate before growth continues. That’s exactly what we’re seeing today. Therefore, the real bulls don’t mind. Instead, they’re picking up the discount!

What We Can Expect To See Moving Forward

All in all, the FDA approval is great news for BDSI. This approval in the pain management space is likely to lead to massive sales. The reality is that pain management is a huge industry. As mentioned above, chronic pain affects more people than heart disease, cancer and diabetes combined. As a result, BELBUCA doesn’t have to penetrate more than even 1% of the market to be overwhelmingly successful. Nonetheless, I think sales will go far beyond this point. Therefore, BDSI and its investors are likely to enjoy profits relatively soon.

What Do You Think?

Where do you think BDSI is headed and why? Let us know in the comments below!

[Image Courtesy of Exome]

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.


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