Oppenheimer & Co., Inc. Analyst Boris Peaker says Keryx Biopharmaceuticals (KERX) is one of the companies he is recommending to investors, based largely on the company’s phosphate-binding dialysis drug. Peaker says Keryx’s drug is in a well-established class of drugs that is experiencing a unique opportunity in the current environment.
“The majority of dialysis patients are covered by the government, by Medicare, and dialysis is reimbursed on a fixed payment to provider for services and the injectable drugs that are incidental to the services,” Peaker says. “They get a fixed dollar amount, and if they have to use more drugs on the patient, it essentially comes out of their pocket.”
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As a result, Peaker says there has been a strong push in the medical community to minimize the use of injectable therapies for dialysis patients because of the financial disadvantage to the providers. Keryx’s dialysis drug reduces the need for injectables, which makes it attractive to dialysis clinics.
“Keryx’s drug is oral, and so if the dialysis clinic switches a patient to it, they actually benefit financially from the savings,” Peaker says. “Assuming approval, that makes this highly desirable now.”
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