On Monday, BMO Capital Markets maintained its Market Perform rating on BridgeBio Pharma (NASDAQ:BBIO) with a steady price target of $37.00. The firm's assessment follows the recent FDA approval of Acoramidis (Attruby) for the treatment of cardiovascular death and hospitalization, noting its similarity to Tafamidis in terms of benefits and safety profile.
The approval of Acoramidis was seen as a bullish scenario for BridgeBio Pharma, with the expectation of a 20-30% increase in the company's stock price, barring any use of the news as a liquidity event. BMO Capital highlighted the removal of concerns regarding regulatory challenges, label restrictions, and milestone payments as significant positives for the company.
The analyst at BMO Capital expressed belief that the launch of Acoramidis will be a key driver for BridgeBio Pharma's narrative moving forward. The endorsement of the drug by the FDA is considered a major milestone, potentially influencing the company's performance and market position.
BridgeBio Pharma's market valuation is anticipated to reflect the positive developments surrounding Acoramidis. The firm's forecasted stock price surge is based on the optimistic reception of the drug's approval and its subsequent impact on the company's financial health.
In conclusion, BMO Capital's reiteration of the Market Perform rating and price target for BridgeBio Pharma underscores the significance of Acoramidis' FDA approval. The firm anticipates that the drug's launch will be instrumental in shaping the future prospects of BridgeBio Pharma.
In other recent news, BridgeBio Pharma has received early approval for its new drug, acoramidis, also known as Attruby. Piper Sandler, H.C. Wainwright, and Citi have maintained their Overweight, Buy, and Buy ratings respectively, with Piper Sandler keeping a steady price target of $46.00, H.C. Wainwright lifting its target to $49.00, and Citi confirming its target at $45.00. The drug, priced annually at $244.5K, is intended for the treatment of ATTR-CM and claims to reduce mortality.
In addition to this development, BridgeBio has reported promising results from its Phase 1/2 CANaspire trial for BBP-812, a gene therapy for Canavan disease. The company has also completed enrollment for its Phase 3 FORTIFY study of BBP-418, a potential treatment for Limb-girdle Muscular Dystrophy Type 2I/R9.
Other recent developments include the discontinuation of BridgeBio's BBP-631 gene therapy program, expected to save over $50 million in research and development, and the formation of a joint venture named GondolaBio, backed by a $300 million investment from a consortium of investors.
InvestingPro Insights
To complement BMO Capital's analysis of BridgeBio Pharma (NASDAQ:BBIO) following the FDA approval of Acoramidis, InvestingPro data offers additional financial context. Despite the positive news, BBIO's market capitalization stands at $4.43 billion, with the stock trading at $23.42 as of the previous close. This represents only 52.84% of its 52-week high, suggesting potential upside if the market fully recognizes the value of Acoramidis.
InvestingPro Tips highlight that analysts anticipate sales growth for BBIO in the current year, which aligns with expectations surrounding the Acoramidis launch. However, it's worth noting that the company is not projected to be profitable this year, reflecting the ongoing investments in drug development and commercialization.
Interestingly, BBIO's revenue for the last twelve months as of Q3 2023 was $217.76 million, with an impressive revenue growth of 2209.77% over the same period. This substantial growth could be attributed to milestone payments or initial sales of approved products, potentially including early recognition of Acoramidis-related income.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into BBIO's financial health and growth prospects. Currently, there are 6 additional InvestingPro Tips available for BBIO, which could be valuable for assessing the company's future performance in light of the recent FDA approval.
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