BioCryst stock price target raised to $15 by RBC on HAE acquisition

Investing.com - RBC Capital has raised its price target on BioCryst Pharma (NASDAQ:BCRX) to $15.00 from $14.00 while maintaining an Outperform rating following the company’s announced acquisition of late-stage HAE developer ATXS. The stock, currently trading near its 52-week low of $6.01, appears undervalued according to InvestingPro analysis.

The firm expressed increased conviction that despite near-term dilution, the deal strategically leverages BioCryst’s core competencies and strengthens its hereditary angioedema (HAE) franchise against emerging competition.

RBC Capital projects that the addition of navenibart, ATXS’s lead drug candidate, will help BioCryst achieve nearly $1.4 billion in out-year HAE revenue and a 9% nine-year top-line compound annual growth rate.

The investment bank’s revised financial model incorporates both navenibart and the additional expenses associated with the acquisition, leading to the higher price target.

RBC Capital suggested that the current share price weakness presents a "particularly compelling buying opportunity" as it believes BioCryst shares remain "considerably undervalued" based on its fair value assessment.

In other recent news, BioCryst Pharmaceuticals announced the acquisition of Astria Therapeutics for $13.00 per share, which represents a 53% premium over Astria’s previous closing price. This transaction values Astria at approximately $920 million in total equity value. Jefferies responded by raising its price target for BioCryst to $15.00, maintaining a Buy rating. However, Evercore ISI downgraded BioCryst from Outperform to In Line, citing increased competition in the hereditary angioedema treatment market as a concern. Additionally, BioCryst has completed the sale of its European ORLADEYO business to Neopharmed Gentili for $250 million, with potential milestone payments of up to $14 million. This move allows BioCryst to concentrate on its core U.S. market. In another development, Dr. Helen Thackray, BioCryst’s chief R&D officer, will depart to pursue a CEO role elsewhere, transitioning to an advisory role through the end of the year. These recent developments highlight significant strategic shifts and leadership changes at BioCryst Pharmaceuticals .

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