BridgeBio stock rises after $300 million royalty deal for European acoramidis sales

Investing.com - BridgeBio Pharma (NASDAQ:BBIO), which has delivered an impressive 77% return over the past year according to InvestingPro data, announced a partial monetization of royalties for European sales of its acoramidis drug, receiving a $300 million upfront payment while Citi maintained its Buy rating on the stock.

The agreement with HealthCare Royalty (HCRx) and Blue Owl Capital involves BridgeBio selling 60% of royalties it would receive from exclusive European partner Bayer (OTC:BAYRY) on the first $500 million of annual Beyonttra net sales, the European brand name for acoramidis.

Total (EPA:TTEF) payments under the deal will be capped at 1.45 times the initial amount, after which payments to HCRx and Blue Owl will cease, allowing BridgeBio to retain significant upside potential from future sales.

BridgeBio plans to use the $300 million upfront payment to strengthen its balance sheet while supporting the continued U.S. launch of Attruby (the U.S. brand name for acoramidis) and developing its late-stage R&D programs.

Citi analyst David Lebowitz reiterated a Buy rating and $58.00 price target on BridgeBio, estimating that Attruby will generate $43.6 million in revenue during the second quarter of 2025. With analyst targets ranging from $41 to $95, InvestingPro reveals 12 additional key insights about BridgeBio’s growth prospects and market position. Access the comprehensive Pro Research Report for deeper analysis of this biotech company’s potential.

In other recent news, BridgeBio Pharma has entered into a significant transaction by selling 60% of its European royalties for the ATTR-CM drug BEYONTTRA to HealthCare Royalty and Blue Owl Capital for $300 million. This deal is expected to bolster the company’s financial position, aiding the launch of its genetic medicine pipeline. Meanwhile, Wolfe Research initiated coverage on BridgeBio with an outperform rating, projecting substantial revenue growth for the company over the next decade. They estimate BridgeBio’s revenue to reach $569 million in 2025, growing to $3.4 billion by 2028. H.C. Wainwright also expressed optimism, maintaining a Buy rating and raising the price target to $56 due to positive sales momentum of ATTRUBY, a treatment for ATTR-CM.

Piper Sandler reiterated an Overweight rating for BridgeBio, focusing on the potential of encaleret, a drug in development, which could significantly impact the market upon successful trial outcomes. The analysts highlighted the upcoming Phase 3 topline readout of the CALIBRATE study for encaleret, expected in the second half of 2025. BMO Capital raised its price target for BridgeBio to $42, reflecting updated expectations for the company’s sales performance, particularly for its ATTRUBY product in the U.S. market. The firm anticipates a strong second-quarter sales performance, projecting a substantial increase in revenue, which could surpass consensus estimates by 20% to 40%. These developments underscore BridgeBio Pharma’s active engagement in expanding its market presence and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.