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Investment analysts at Morgan Stanley initiated coverage on shares of Relypsa (NASDAQ:RLYP) in a note issued to investors on Tuesday, AnalystRatings.Net reports. The firm set an “overweight” rating and a $57.00 price target on the stock. Morgan Stanley’s price objective indicates a potential upside of 185.14% from the company’s current price.

The analysts wrote, “We are OW Relypsa as we believe patiromer has $850+mn revenue potential in hyperK+. Patiromer has shown solid data reducing serum K+ levels in hyperkalemic patients out to 52 weeks. Patiromer’s safety profile is clean, with manageable mild-to-moderate GI tolerability and low levels of hypokalemia and hypomagnesemia, which have not led to clinically meaningful issues. We expect patiromer to be approved in the US following a 3Q14 NDA filing; the EU path forward is less clear to us. Many HF and CKD patients must reduce or discontinue RAASi therapy, drugs which have been shown to improve long-term outcomes, given high K+ levels. We see a compelling opportunity for patiromer as the drug reduces K+ levels and may allow HF and CKD patients to remain on their RAASi therapy. We expect that limited long-term data and tolerability issues will moderate the impact of competitors such as ZS-9 and kayexalate.”

Relypsa (NASDAQ:RLYP) traded up 6.90% on Tuesday, hitting $21.37. The stock had a trading volume of 68,117 shares. Relypsa has a 52 week low of $11.55 and a 52 week high of $21.40. The stock has a 50-day moving average of $15.7 and a 200-day moving average of $15.7. The company’s market cap is $612.5 million.

Relypsa, Inc is a pharmaceutical company focused on the development and commercialization of non-absorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases.

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