Citizens JMP downgrades Blueprint Medicines stock on Sanofi acquisition

Published 03/06/2025, 09:16
Citizens JMP downgrades Blueprint Medicines stock on Sanofi acquisition

On Tuesday, Citizens JMP analysts downgraded Blueprint Medicines stock (NASDAQ: NASDAQ:BPMC) from Market Outperform to Market Perform. This change follows the announcement of a proposed acquisition by Sanofi (NASDAQ:SNY). According to InvestingPro data, BPMC shares are trading near their 52-week high of $128.15, having surged nearly 28% in the past week.

Sanofi and Blueprint Medicines have entered into an acquisition agreement under which Sanofi will acquire Blueprint for $129 per share in cash. The agreement also includes a contingent value right (CVR) of $6, comprising $2 for future development and $4 for regulatory milestones related to BLU-808. The total transaction is valued at approximately $9.5 billion. Blueprint’s financial health is rated as GOOD by InvestingPro, with strong liquidity ratios and moderate debt levels.

The acquisition is contingent upon meeting regulatory and closing conditions, with an anticipated completion in the third quarter of 2025. This strategic move by Sanofi aims to strengthen its portfolio in the pharmaceutical sector.

The downgrade reflects the analyst’s view of the acquisition’s impact on Blueprint Medicines’ stock performance, considering the terms of the agreement. The stock’s new rating aligns with the anticipated changes following the acquisition.

In other recent news, Blueprint Medicines has agreed to be acquired by Sanofi in a deal valued at approximately $9.5 billion. Sanofi will pay $129 per share in cash, representing a 27% premium over Blueprint’s recent closing price. The agreement also includes non-tradeable contingent value rights (CVRs) that could provide additional payments based on the progress of BLU-808, a drug in Blueprint’s pipeline. The acquisition is expected to close in the third quarter of 2025, pending regulatory approvals. This transaction is part of Sanofi’s strategy to expand its oncology and immunology portfolios.

Following the acquisition announcement, TD Cowen downgraded Blueprint Medicines stock from Buy to Hold, setting a new price target of $130, which reflects the potential value of the CVRs. Similarly, JPMorgan downgraded the stock from Overweight to Neutral with a revised price target of $129. Despite the acquisition news, Citi analysts maintained a Sell rating with an $83 price target for Blueprint Medicines. Ayvakit, Blueprint’s approved medication for systemic mastocytosis, achieved net revenues of nearly $150 million in the first quarter of 2025, showing significant growth compared to the previous year.

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