JMP Securities maintains BioCryst stock with $18 target

On Friday, JMP Securities reiterated its Market Outperform rating on BioCryst Pharmaceuticals (NASDAQ:BCRX) with a consistent price target of $18.00. The firm’s analysis is based on the performance and market adoption of BioCryst’s drug, Orladeyo, which is currently used by approximately 22% of patients requiring treatment. This adoption has contributed to the company’s impressive 29.92% revenue growth over the last twelve months, with a healthy gross profit margin of 52.14%. Orladeyo stands out as the only drug anticipated to see a growth rate exceeding 10% within the next three to five years, according to physicians surveyed by JMP Securities.

The analysts project that if Orladeyo can capture 25% of the U.S. market share, which is a modest increase from the approximately 20% reported for 2024 by the company, BioCryst Pharmaceuticals could reach its target U.S. peak sales of $800 million. According to InvestingPro, the company maintains a strong financial position with a current ratio of 2.78, indicating solid liquidity. This forecast aligns with the positive outlook shared by the healthcare professionals who are directly involved in prescribing treatments.

The optimism surrounding Orladeyo is significant as it represents a key product in BioCryst’s portfolio. The drug’s market performance is not only a testament to its efficacy but also to the company’s strategic positioning within the pharmaceutical industry. InvestingPro analysis reveals several promising indicators, with analyst targets ranging from $8 to $30, suggesting significant potential upside. As the only drug expected to grow at such a robust rate, Orladeyo is poised to become a more dominant player in its segment. Get access to 6 more exclusive InvestingPro Tips and comprehensive analysis with an InvestingPro subscription.

BioCryst Pharmaceuticals’ focus on achieving a greater market share with Orladeyo is part of its broader business strategy. The company’s ability to meet its sales target would reflect positively on its overall financial health and future prospects. The Market Outperform rating by JMP Securities suggests confidence in BioCryst’s potential to outperform the general market, fueled by Orladeyo’s projected success.

The $18.00 price target set by JMP Securities indicates a level of value that the firm believes BioCryst shares can reach based on current and expected performance metrics. This target remains unchanged, showing a steady confidence in the company’s trajectory despite the volatile nature of the pharmaceutical market.

In other recent news, BioCryst Pharmaceuticals has seen a significant increase in its earnings and revenue. The company reported a 36% year-over-year increase in its third-quarter revenue, primarily driven by its ORLADEYO product. Furthermore, BioCryst has adjusted its 2024 revenue guidance to between $430 and $435 million, projecting to reach $1 billion in annual revenue by 2029.

Analyst Liisa Bayko from Evercore ISI raised the price target for BioCryst to $12, up from the previous $10, while reiterating an Outperform rating on the stock. Bayko highlighted BioCryst’s strong performance and expressed confidence in the firm’s future, suggesting that the 2025 revenue guidance for Orladeyo might be understated.

In addition, BioCryst announced an increase in the wholesale acquisition cost of its medication ORLADEYO. The new price is set at $44,484.33 per pack, marking an increase from the previous cost of $42,366.03.

The company also made progress in its clinical trials, with BCX17725 for Netherton syndrome recently entering the clinical stage, and plans to submit regulatory filings for an oral prophylactic therapy for children with hereditary angioedema by 2025.

Lastly, BioCryst aims for quarterly cash flow positivity by late 2024 and full-year profitability in 2026. These are some of the recent developments concerning BioCryst Pharmaceuticals.

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