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On Wednesday, Citi analysts upgraded Blueprint Medicines (NASDAQ:BPMC) stock to Neutral from a previous rating, following the announcement of its acquisition by Sanofi (NASDAQ:SNY). The transaction involves a cash purchase of $129 per share, along with contingent value rights related to the pipeline asset BLU-808. The stock has already surged 34% in the past week, trading near its 52-week high of $128.15. According to InvestingPro data, the company’s market capitalization now stands at $8.25 billion.
Citi has set a new price target for Blueprint Medicines at $129, aligning with the acquisition price. The analysts noted that Sanofi’s extensive presence in allergy, asthma, and immunology provides a strategic fit for the acquisition. Blueprint’s strong financial position is evident with a healthy current ratio of 2.8 and impressive revenue growth of 99% over the last twelve months. InvestingPro offers 12 additional investment tips for BPMC, along with comprehensive analysis in its Pro Research Report.
The timing of the announcement has raised questions, as pivotal data from Cogent’s SUMMIT trial for bezuclastinib, a treatment for non-advanced systemic mastocytosis, is anticipated in July. The outcome of this trial could significantly impact the valuation of Blueprint’s systemic mastocytosis franchise.
Despite the timing concerns, Citi analysts do not foresee any regulatory obstacles or competitive bids affecting the transaction’s completion. The acquisition is expected to proceed smoothly, with no anticipated disruptions.
In other recent news, Blueprint Medicines has announced a significant acquisition agreement with Sanofi, valued at approximately $9.5 billion. Sanofi will purchase Blueprint Medicines for $129 per share in cash, with additional non-tradable contingent value rights (CVRs) of up to $6 per share tied to the development and regulatory milestones of BLU-808. This acquisition aims to expand Sanofi’s portfolio in rare immunological diseases and is expected to close in the third quarter of 2025, pending regulatory approvals. Following the announcement, various analyst firms have adjusted their ratings on Blueprint Medicines. Citizens JMP downgraded the stock from Market Outperform to Market Perform, and TD Cowen lowered their rating from Buy to Hold. JPMorgan also revised its rating from Overweight to Neutral, citing the acquisition’s impact on the stock’s valuation. Meanwhile, Citi maintained a Sell rating with an $83 price target, reflecting skepticism despite the acquisition’s premium offer. Blueprint Medicines’ recent earnings report showed Ayvakit achieving nearly $150 million in net revenues in the first quarter of 2025, marking significant growth compared to the previous year.
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