Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
On Monday, Citi analysts reiterated a Sell rating and maintained an $83 price target for Blueprint Medicines stock (NASDAQ:BPMC), which currently trades at $101.35. According to InvestingPro data, the company maintains a GOOD overall financial health score despite not being profitable over the last twelve months. This comes as Blueprint Medicines announced a definitive agreement to be acquired by Sanofi (NASDAQ:SNY) in a transaction valued at up to $9.5 billion.
Sanofi is set to pay $129 per share in cash for Blueprint Medicines, which marks a 27% premium over Blueprint’s last closing price. The acquisition price also reflects approximately a 34% premium over the 30-day volume-weighted average price (VWAP). Blueprint operates with a moderate level of debt and maintains strong liquidity, with a current ratio of 2.8x showing liquid assets well exceed short-term obligations.
The agreement includes a non-tradeable contingent value right (CVR) that could provide additional milestone payments of $2 and $4 per share. These payments are contingent on the development progress of BLU-808, Blueprint’s next-generation KIT inhibitor and key pipeline asset.
With the CVR factored in, the deal represents a premium of around 33% over Blueprint’s most recent closing price. Despite the acquisition news, Citi analysts maintained their Sell rating and price target for Blueprint Medicines stock.
In other recent news, Blueprint Medicines has reported a surprising first-quarter 2025 earnings per share of $0.01, significantly surpassing the forecasted -$0.49. However, the company’s revenue fell short of expectations, coming in at $149.41 million compared to the anticipated $156.83 million. Despite this, Blueprint Medicines raised its full-year revenue guidance to $700-$720 million, reflecting confidence in its product pipeline and market opportunities. The company is optimistic about its systemic mastocytosis treatments, projecting global peak revenues exceeding $4 billion, with $2 billion expected in the U.S. market alone.
Meanwhile, Sanofi has announced plans to acquire Blueprint Medicines, aiming to enhance its portfolio in rare immunological diseases. The acquisition, valued at approximately $9.1 billion, is expected to be completed by the third quarter of 2025 and is anticipated to immediately increase Sanofi’s gross margin. Sanofi will pay $129.00 per share in cash at closing, and Blueprint shareholders will receive a Contingent Value Right (CVR) for potential future milestone payments.
Analysts at Citizens JMP have reaffirmed a Market Outperform rating for Blueprint Medicines, maintaining a price target of $125. They highlight the company’s strong financial health and strategic advancements, noting the potential for significant market growth. Blueprint Medicines’ robust cash reserve of approximately $899.8 million and disciplined approach to clinical development are seen as favorable factors by analysts. These developments underscore the company’s strategic positioning and potential for continued growth.
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