On Monday, Piper Sandler adjusted its outlook on BioCryst Pharma (NASDAQ:BCRX), increasing the price target to $21 from the previous $20 while sustaining an Overweight rating on the company's shares. The adjustment follows BioCryst Pharma's third-quarter results, which saw Orladeyo, its treatment for hereditary angioedema (HAE), surpassing expectations and the company tightening its full-year 2024 revenue guidance for the drug.
The updated revenue guidance is now set at $430 million to $435 million, a slight increase from the prior range of $420 million to $435 million. This revision comes after the company's announcement earlier today, which highlighted the success of Orladeyo in the market. The drug's performance is seen as a key driver of BioCryst Pharma's ongoing success and is expected to continue to play a central role in the company's growth.
Piper Sandler has expressed confidence in Orladeyo's position in the HAE space, despite the potential emergence of new competitors. The firm believes that the drug will maintain its commercial viability, supported by an ongoing Phase 4 observational study and a pediatric program aimed at expanding the drug's label.
The firm also commended BioCryst Pharma's clinical execution, noting several pipeline assets that are anticipated to gain more attention moving forward. The expectation is that these developments will further strengthen the company's market position. Additionally, the firm highlighted that BioCryst Pharma is on track to achieve quarterly earnings per share positivity in the second half of 2025.
The current market valuation of BioCryst Pharma, which is trading at approximately four times its projected 2024 revenue guidance, is perceived by Piper Sandler as not fully reflecting a take-out premium, suggesting additional room for stock appreciation. Based on these factors, Piper Sandler continues to recommend investment in BioCryst Pharma shares.
In other recent news, BioCryst Pharmaceuticals has seen significant developments. The company reported third-quarter earnings with Orladeyo sales reaching $116.3 million, surpassing both BofA's projection and the consensus estimate. The company also reported a year-over-year increase in U.S. patient start forms and an improvement in the paid drug rate. BofA Securities maintained a Buy rating for BioCryst, seeing the current dip in the company's stock price as an entry point for investors.
BioCryst has also initiated a Phase 1 clinical trial for BCX17725, aimed at treating Netherton syndrome, a rare genetic disorder. The company has secured a $69 million contract from the U.S. Department of Health and Human Services for its influenza treatment, RAPIVAB.
A study released by the company showed that its oral treatment for hereditary angioedema (HAE), ORLADEYO, led to notable reductions in healthcare resource utilization among U.S. patients. The company also reported strong demand for ORLADEYO, leading to an upgraded revenue forecast for the year.
Furthermore, BioCryst finalized a deal with the pan-Canadian Pharmaceutical Alliance to incorporate ORLADEYO into public formularies, expanding patient access across Canada. However, the BCX10013 program was discontinued due to insufficient drug activity. These are some of the recent developments at BioCryst Pharmaceuticals.
InvestingPro Insights
Recent data from InvestingPro adds depth to Piper Sandler's optimistic outlook on BioCryst Pharma (NASDAQ:BCRX). The company's market cap stands at $1.49 billion, with a robust revenue growth of 24.65% over the last twelve months as of Q2 2024. This aligns with the positive reception of Orladeyo and supports the increased revenue guidance.
InvestingPro Tips highlight that 4 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in BioCryst's financial performance. This corroborates Piper Sandler's expectation of quarterly earnings per share positivity by late 2025.
The stock has shown strong returns, with a 20.09% price increase over the last three months and an impressive 89.44% surge over the past six months. This performance reflects the market's positive response to Orladeyo's success and BioCryst's pipeline potential.
It's worth noting that while the company is not currently profitable, its liquid assets exceed short-term obligations, indicating financial stability as it continues to invest in growth. For investors seeking a comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into BioCryst's market position and future prospects.
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