On Wednesday, Piper Sandler maintained its Overweight rating and $46.00 stock price target for BridgeBio Pharma (NASDAQ:BBIO), traded on NASDAQ:BBIO. The decision came after BridgeBio announced the discontinuation of its BBP-631 gene therapy program for Congenital Adrenal Hyperplasia due to topline results that failed to meet the necessary threshold for further development.
The discontinuation of BBP-631 is not expected to alter the investment firm's outlook on the company. Piper Sandler had previously deemed the gene therapy program high-risk and had not incorporated it into their financial model. The firm believes that the cancellation of the program will lead to research and development savings for BridgeBio, projecting over $50 million in 2025.
Piper Sandler's positive stance is supported by multiple potential developments in BridgeBio's pipeline. One of the key upcoming milestones for the company is the potential approval of acoramidis for the treatment of ATTR-CM, with a PDUFA date set for November 9, 2024. The market for this treatment has expanded significantly over the past year and is expected to continue its growth trajectory.
In addition to acoramidis, BridgeBio is anticipated to release phase 3 data for encaleret in the treatment of ADH1 in 2025. Furthermore, the company is expected to present phase 3 results for infigratinib, aimed at treating ACH, by the end of 2025 or early 2026. These upcoming events represent significant opportunities for BridgeBio and are likely to be closely watched by investors.
In other recent news, BridgeBio Pharma has announced a halt in additional investment for its gene therapy program for congenital adrenal hyperplasia (CAH), despite promising results from the Phase 1/2 ADventure study of BBP-631. This decision is set to reduce the company's gene therapy budget by over $50 million.
Meanwhile, BridgeBio has received Regenerative Medicine Advanced Therapy status from the U.S. Food and Drug Administration for its gene therapy BBP-812, aimed at treating Canavan disease, based on encouraging data from the ongoing CANaspire Phase 1/2 trial.
In analyst updates, Oppenheimer has maintained a Perform rating on Alnylam Pharmaceuticals, while Mizuho, H.C. Wainwright, and TD Cowen have all reiterated positive ratings for BridgeBio Pharma. These ratings follow the recent developments in BridgeBio's investigational drug, acoramidis, and its Phase 3 ATTRibute-CM study.
Lastly, BridgeBio has formed a significant joint venture named GondolaBio, backed by a $300 million investment from a consortium of investors, aiming to expedite the development of new therapies. These are among the recent developments in the company.
InvestingPro Insights
As BridgeBio Pharma (NASDAQ:BBIO) navigates through the discontinuation of its BBP-631 program, investors are keeping a keen eye on the company's financial health and market performance. According to InvestingPro data, BridgeBio Pharma has a market capitalization of $5.64 billion and has experienced an astonishing revenue growth of 3761.22% in the last twelve months as of Q2 2024. This growth is reflective of the company's dynamic pipeline and its ability to generate investor interest despite recent setbacks.
Looking at the company's stock performance, BridgeBio has seen a strong return over the last month, with a price total return of 22.76%. This suggests a resilient investor confidence which could be bolstered by the potential developments in the company's drug pipeline. In line with this optimism, two analysts have revised their earnings upwards for the upcoming period, as noted in the InvestingPro Tips. Moreover, the company's liquid assets surpass its short-term obligations, providing a cushion for its ambitious research and development endeavors.
While analysts do not anticipate BridgeBio to be profitable this year, the company's strategic focus could pave the way for long-term growth. For those interested in deeper analysis, additional InvestingPro Tips are available, offering further insights into BridgeBio's market prospects and financial metrics.
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