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Investing.com - Raymond (NSE:RYMD) James has reiterated an Outperform rating and $57.00 price target on BridgeBio Pharma (NASDAQ:BBIO), currently trading at $43.06 with a market capitalization of $8.2 billion, following the company’s announcement of a significant royalty sale. According to InvestingPro data, analyst targets range from $41 to $95, with the stock showing strong momentum, up 77% over the past year.
On Monday, BridgeBio disclosed it had sold a portion of its acoramidis (marketed as Attruby in the U.S. and Beyontra elsewhere) royalties from Bayer (OTC:BAYRY) in European territories to HCRx and Blue Owl for $300 million.
The transaction addresses what Raymond James analyst Danielle Brill (AS:BRIL) described as an "overhang" for the company related to cash burn and potential dilution risks.
According to Raymond James’ models, the $300 million cash infusion should extend BridgeBio’s runway into at least 2027, a period during which the firm expects acoramidis sales to "rapidly inflect upward."
The royalty sale stems from BridgeBio’s March 2024 licensing agreement with Bayer for acoramidis in Europe, which included upfront and milestone payments along with royalties in the low 30s percentage range of net sales.
In other recent news, BridgeBio Pharma has announced a significant financial development by securing a $300 million upfront payment through a royalty deal for its European sales of the drug acoramidis, branded as Beyonttra in Europe. This transaction involves selling 60% of royalties from European sales to HealthCare Royalty and Blue Owl Capital, with payments capped at 1.45 times the initial amount. The funds will be utilized to strengthen BridgeBio’s balance sheet and support the U.S. launch of Attruby, the U.S. brand name for acoramidis, as well as its late-stage R&D programs. Meanwhile, Citi has maintained its Buy rating on BridgeBio, with a price target of $58.00, and Wolfe Research has initiated coverage with an Outperform rating, projecting substantial revenue growth for the company. H.C. Wainwright also reiterated a Buy rating, increasing its price target to $56.00, citing optimistic financial prospects and a positive sales trajectory for acoramidis. Piper Sandler maintains an Overweight rating with a $63.00 price target, highlighting the upcoming Phase 3 CALIBRATE study for the drug encaleret. These developments underscore BridgeBio’s ongoing strategic and financial maneuvers in the pharmaceutical landscape.
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