BridgeBio stock initiated with Buy rating at Truist on strong Attruby launch

Investing.com - Truist Securities initiated coverage on BridgeBio Pharma (NASDAQ:BBIO) with a Buy rating and a $66.00 price target on Monday. The company, currently valued at $8.8 billion, has seen impressive momentum with a 77.6% return over the past year according to InvestingPro data.

The firm cited the strong launch of Attruby in ATTR-CM (transthyretin amyloid cardiomyopathy) as a key driver for its positive outlook on the stock. According to Truist, Attruby appears to be gaining traction as a preferred first-line treatment option due to ease of procurement. The company maintains an impressive gross profit margin of 95.35%, though InvestingPro data shows it’s not yet profitable.

Truist projects the ATTR-CM market to grow to approximately $20 billion and sees unrealized value for Attruby in this expanding space. The drug is also reportedly being used in tafamidis-progressing patients due to better stabilizer data and ease of administration.

The firm acknowledged some uncertainty regarding the long-term outlook due to ongoing intellectual property litigation from competitor Pfizer (NYSE:PFE) but expressed optimism that BridgeBio’s patents will be upheld.

Truist also highlighted potential upside from BridgeBio’s late-stage pipeline, noting multiple catalysts expected to begin in the second half of 2025.

In other recent news, BridgeBio Pharma has made several significant announcements that are capturing investor attention. The company secured a $300 million upfront payment by selling 60% of its royalties on the first $500 million of annual BEYONTTRA (acoramidis) net sales in Europe to HealthCare Royalty and funds managed by Blue Owl Capital. This royalty financing agreement follows a licensing deal with Bayer (OTC:BAYRY) Consumer Care AG, through which BridgeBio has already received $210 million in upfront and milestone payments, with an additional $75 million expected soon. Analysts from H.C. Wainwright, Citi, Jefferies, and Cantor Fitzgerald have maintained favorable ratings on BridgeBio, highlighting the company’s potential in its drug pipeline and commercial prospects.

Jefferies initiated coverage with a Buy rating, suggesting that BridgeBio’s oral TTR stabilizer, Attruby, could become a blockbuster with over $4 billion in sales. Cantor Fitzgerald reiterated an Overweight rating, citing multiple upcoming catalysts, including interim Phase 3 data for BBP-418 in LGMD2I/R9 and Encaleret Phase 3 data in ADH1, expected in 2025. Raymond (NSE:RYMD) James also reiterated an Outperform rating, noting that the royalty sale addresses cash burn concerns and could extend the company’s financial runway into 2027. Citi reaffirmed a Buy rating, emphasizing the potential of BBP-418 for limb-girdle muscular dystrophy type 2I/R9, with interim data expected later this summer. These developments underscore BridgeBio’s strategic financial maneuvers and promising drug pipeline, which continue to attract analyst support.

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