On Wednesday, Piper Sandler confirmed its Overweight rating on shares of BridgeBio Pharma (NASDAQ:BBIO) with a steady price target of $46.00. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock, with price targets ranging from $36.40 to $70.00. The company, currently valued at $5.26 billion, shows strong liquidity with current assets exceeding short-term obligations by more than three times.
The firm highlighted the ongoing discussion among investors regarding the implications of potential approval for ALNY's Amvuttra in ATTR-CM, a condition targeted by BridgeBio's Attruby. The approval, with a PDUFA date set for March 23, 2025, has raised questions about the differences in Medicare drug coverage under Part B and Part D.
The analyst pointed out that Amvuttra would fall under Part B coverage, while BridgeBio's Attruby is covered under Part D. This distinction is significant because Medicare is estimated to cover 80% of ATTR-CM patients. According to payer consultants, there could be a higher liability for insurers with a Part B drug compared to a Part D medication, which may influence market adoption.
Piper Sandler's analysis suggests that Attruby's risk-adjusted sales in the United States for the year 2025 could reach $115 million. This figure surpasses the consensus estimate of $101.6 million.
InvestingPro analysis indicates strong growth potential, with analysts forecasting revenue growth of 22.57% for fiscal year 2024, though the company is not expected to be profitable this year. The firm's projection is based on the potential market dynamics and coverage nuances between Medicare Part B and Part D drugs.
The discussion on reimbursement and coverage is crucial for investors, as it affects the financial performance of pharmaceutical companies like BridgeBio Pharma. The firm's estimation of sales for Attruby indicates a positive outlook for BridgeBio's financial prospects in the coming years, especially in the context of Medicare's coverage policies.
BridgeBio Pharma specializes in genetic diseases, and Attruby's market adoption is a key factor for the company's growth. The insights provided by Piper Sandler shed light on the complex landscape of drug coverage and reimbursement, which is an essential aspect of the pharmaceutical industry's market strategies.
For deeper insights into BridgeBio's financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 6 additional ProTips and detailed valuation metrics in the Pro Research Report, available exclusively to subscribers.
In other recent news, BridgeBio Pharma has been in the limelight due to a series of significant developments. The company's treatment for a rare heart condition, acoramidis, received a positive recommendation for marketing authorization in the European Union.
This follows an earlier approval under the brand name Attruby by the FDA. Analysts from H.C. Wainwright, Scotiabank (TSX:BNS), TD Cowen, and BMO Capital Markets have maintained positive ratings for BridgeBio, with H.C. Wainwright and Scotiabank raising their price targets to $49 and $48 respectively.
Attruby's FDA approval was based on the ATTRibute-CM Phase 3 study, which demonstrated the drug's significant reduction in death and cardiovascular-related hospitalizations. This led to an early approval and a prepared sales team, setting the stage for a strong market entry for Attruby. The competitive pricing of Attruby, which is set 10% lower than its competitor, taf, is expected to encourage widespread adoption of the drug.
BridgeBio Pharma also reported promising results from its Phase 1/2 CANaspire trial for BBP-812, a gene therapy for Canavan disease, and completed enrollment for its Phase 3 FORTIFY study of BBP-418, a potential treatment for Limb-girdle Muscular Dystrophy Type 2I/R9.
The company discontinued its BBP-631 gene therapy program, expected to save over $50 million in research and development, and formed a joint venture named GondolaBio, backed by a $300 million investment from a consortium of investors. These developments reflect BridgeBio's active engagement in drug development and regulatory processes.
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