BioDelivery Sciences International, Inc. (BDSI), which had announced an assignment and revenue sharing agreement with Sweden-based Meda AB, saw its shares go up 3.7% immediately after the announcement. However, shares were down 4.9% in the subsequent trading session. Overall, shares are down 1.5% since the agreement was announced.

The agreement is regarding the transfer of marketing authorizations for Onsolis (meant for the treatment of breakthrough pain in patients with cancer who are receiving and are tolerant to opioid therapy for their underlying persistent cancer pain; initially launched in 2009) to BioDelivery to market the drug in the U.S. The deal also provides BioDelivery with the right to seek marketing authorizations for the drug in Canada and Mexico.

BioDelivery had initially licensed these rights to Meda in 2007. However, with Meda focusing primarily on the respiratory area in the U.S. over the past few years, the companies decided to enter into an agreement returning rights to BioDelivery. BioDelivery intends to work with the FDA to bring Onsolis back to the U.S. market.

The deal provides Meda with the right to get a part of the proceeds from any new North American partnership that BioDelivery may enter into for Onsolis.

The return of the rights provides BioDelivery with the option to seek one or more new commercial partners for Onsolis.

Going forward, we expect investor focus to remain on the performance of another drug in BioDelivery’s portfolio – Bunavail. Bunavail, which became available in the U.S. in early Nov 2014, is indicated for the maintenance treatment of opioid dependence. The company has a dedicated sales force of about 60 reps promoting the product.

BioDelivery Sciences is a Zacks Rank #4 (Sell) stock. Some better ranked stocks in the health care sector include Celgene Corp. (CELG), Ophthotech Corp. (OPHT) and Regado Biosciences, Inc. (RGDO). All three are Zacks Rank #1 (Strong Buy) stocks.

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