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Citi cuts BridgeBio stock target, maintains Buy rating

EditorAhmed Abdulazez Abdulkadir
Published 02/08/2024, 18:04
BBIO
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On Friday, Citi adjusted its price target on shares of BridgeBio Pharma (NASDAQ:BBIO), bringing it down to $45 from the previous $46, while keeping a Buy rating on the stock. The adjustment follows BridgeBio's announcement of its second-quarter earnings for 2024 and updates on its product pipeline, along with a focus on recent key achievements.

The management has also drawn attention to acoramidis data in anticipation of Alnylam's in-depth HELIOS-B update for Amvuttra, expected at the European Society of Cardiology (ESC) congress in late August.

BridgeBio's management has highlighted that a favorable update on Amvuttra could negatively affect BridgeBio's shares since the success of Amvuttra, a TTR silencer, could potentially eat into the market share of BridgeBio's TTR stabilizer, acoramidis.

Nonetheless, Citi's report suggests that the detailed presentation from Alnylam, including combination data with tafamadis, might stir discussions and support a place for acoramidis within the treatment paradigm.

The report further discusses the importance of acoramidis being compared to tafamadis, another TTR stabilizer, stating that this intra-class comparison is more crucial for acoramidis's success than comparisons with Amvuttra. Looking ahead, the focus is on the upcoming Prescription Drug User Fee Act (PDUFA) date set for November 29, 2024, with high expectations for acoramidis's approval for ATTR-CM, a condition characterized by the buildup of abnormal protein deposits in the heart.

In other recent news, BridgeBio Pharma has seen a series of significant developments. The biopharmaceutical company announced the appointment of Thomas Trimarchi, Ph.D., as its new President and Chief Operating Officer. Dr. Trimarchi's focus will be on enhancing efficiency and scalability across BridgeBio's late-stage pipeline.

In terms of clinical trials, BridgeBio exceeded its interim analysis enrollment target for the Phase 3 FORTIFY study of BBP-418, a treatment for Limb-girdle Muscular Dystrophy Type 2I/R9. Top-line results from this analysis are expected in 2025. Additionally, the company's Infigratinib trials have shown promising results, surpassing competitor Voxzogo's Phase II data, as highlighted by BMO Capital Markets.

Analyst firms including Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), and BMO Capital Markets have maintained positive ratings for BridgeBio. Wells Fargo reaffirmed an Overweight rating, while Goldman Sachs maintained Buy ratings. These ratings were based on various developments, including the upcoming HELIOS-B study results and BridgeBio's presentation at the International Symposium on Amyloidosis.

In other trials, the company's PROPEL 2 trial demonstrated significant increases in annualized height velocity in children with achondroplasia, with no reported treatment-related adverse events. Lastly, BridgeBio maintains strategic partnerships with Bayer (OTC:BAYRY) and AstraZeneca (NASDAQ:AZN) for the commercialization of acoramidis, a treatment for a heart condition.

InvestingPro Insights

As BridgeBio Pharma (NASDAQ:BBIO) navigates the competitive landscape of TTR silencers and stabilizers, Citi's recent price target adjustment reflects the dynamic nature of the biopharmaceutical market. In light of Citi's analysis and BridgeBio's earnings report, InvestingPro offers additional insights to investors. Analysts are forecasting sales growth for BridgeBio in the current year, underscoring the potential market response to the company's product pipeline. This is particularly relevant as the company approaches the PDUFA date for acoramidis, with the treatment's approval potentially catalyzing further growth.

InvestingPro data shows BridgeBio with a market capitalization of $4.91 billion and a striking revenue growth of 3761.22% over the last twelve months as of Q2 2024. Despite the impressive revenue surge, analysts do not expect the company to be profitable this year, and it trades at a high revenue valuation multiple. This suggests that while the market recognizes BridgeBio's growth potential, there is also acknowledgment of the risks associated with its profitability trajectory. Moreover, two analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's financial performance.

For investors seeking a comprehensive view of BridgeBio's financial health and future prospects, InvestingPro offers additional tips on its platform. To explore further insights and analysis on BridgeBio Pharma, including more InvestingPro Tips, visit https://www.investing.com/pro/BBIO.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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