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On Tuesday, TD Cowen analysts downgraded Blueprint Medicines stock (NASDAQ: NASDAQ:BPMC) from Buy to Hold. The downgrade comes after the company agreed to be acquired by Sanofi (NASDAQ:SNY) for $129 per share in cash, along with non-tradable contingent value rights (CVRs) of $2 and $4 per share, linked to the initiation and approval of BLU-808 Phase 2b/3 trials. According to InvestingPro data, the stock has surged nearly 28% in the past week and is trading close to its 52-week high of $128.15.
The analyst set a new price target of $130 for Blueprint Medicines, reflecting a modest net present value of the CVRs. The current valuation is seen as fair, considering Ayvakit’s revenue trajectory based on the existing sum-of-the-parts analysis of $122 per share, which did not account for BLU-808. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.8, indicating solid liquidity despite not being profitable in the last twelve months.
Sanofi’s acquisition offer includes cash and CVRs, which are contingent on the progress of BLU-808, a drug in Blueprint Medicines’ pipeline. The CVRs are tied to the initiation and subsequent approval of the drug’s Phase 2b/3 trials.
Blueprint Medicines focuses on developing targeted therapies for genomically defined cancers, rare diseases, and cancer immunotherapy. Sanofi’s acquisition of the company is expected to enhance its capabilities in precision medicine.
The transaction highlights Sanofi’s strategic interest in expanding its oncology portfolio through acquisitions, while Blueprint Medicines gains the opportunity to further develop its innovative therapies under the umbrella of a larger pharmaceutical company.
In other recent news, Blueprint Medicines has announced its acquisition by Sanofi, valued at approximately $9.5 billion. This acquisition includes a cash payment of $129 per share, representing a 27% premium over the company’s recent closing price, and involves contingent value rights (CVRs) that could lead to additional payments based on future milestones for BLU-808. Notably, Blueprint Medicines reported first-quarter 2025 revenues of nearly $150 million, marking a growth of over 60% compared to the same period last year. The company also raised its full-year 2025 revenue guidance to a range of $700-$720 million, reflecting better-than-anticipated performance. JPMorgan downgraded Blueprint Medicines from Overweight to Neutral following the acquisition announcement, while Citi maintained a Sell rating with an $83 price target. Meanwhile, Citizens JMP reaffirmed a Market Outperform rating with a $125 price target, highlighting the company’s financial health and strategic advancements. Sanofi plans to finalize the acquisition in the third quarter of 2025, pending regulatory approvals.
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