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Blueprint Medicines (BPMC) Down Despite Q2 Earnings Beat
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Blueprint Medicines Corporation (BPMC - Free Report) reported second-quarter 2024 adjusted loss of 80 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.28. The company had reported a loss of $2.19 per share in the year-ago quarter.
Quarterly revenues of $138.2 million surpassed the Zacks Consensus Estimate of $105 million. Total revenues jumped almost 140% year over year.
Despite the better-than-expected results, shares of Blueprint Medicines were down 7.4% on Aug 1 following the earnings announcement.
However, the stock has rallied 8.7% year to date against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
Quarter in Detail
Blueprint Medicines’ total revenues comprise net product revenues from Ayvakit/Ayvakyt and collaboration revenues.
Ayvakit (avapritinib), an inhibitor of KIT and PDGFRA proteins, is approved for treating PDGFRA Exon 18 mutant gastrointestinal stromal tumors and advanced and indolent systemic mastocytosis (ISM).
In the second quarter, net product revenues from Ayvakit were $114.1 million, which grew 23.3% on a sequential basis and almost 186% on a year-over-year basis, driven by new patient starts, low discontinuation rates and a high compliance rate. Out of the total revenues generated from Ayvakit sales, $101.5 million came from the U.S. sales of the drug and $12.7 million in ex-U.S. sales.
The label expansion of Ayvakit/Ayvakyt in 2023 to treat ISM in adults in the United States and EU increased the eligible patient population of the drug, which has been driving robust growth in sales. ISM is chronic, due to which patients stay on therapy for longer durations.
Ayvakit is the first and only therapy approved for treating ISM. It has the potential to become a multibillion-dollar product and drive durable revenue growth for BPMC in the next few years.
Collaboration revenues totaled $24 million, up 35.8% on a year-over-year basis.
Another drug of BPMC, Gavreto (pralsetinib), is approved for metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer and RET-mutant and RET fusion-positive thyroid cancer.
The company used to co-develop Gavreto with Roche. However, in February 2023, Roche announced its decision to discontinue the collaboration agreement. Blueprint Medicines regained the global commercial rights to Gavreto in late February 2024. It did not record any net product revenues from Gavreto sales in the reported quarter.
Research and development (R&D) expenses totaled $84.3 million, down 23.4% from the year-ago quarter’s figure. The primary reason behind the decrease in R&D expenses was continued operational efficiency gains across the company’s portfolio, along with favorable timing of manufacturing of clinical study materials.
Selling, general and administrative expenses were $89.3 million, up 24.2% year over year. The uptick in such expenses was due to higher compensation and headcount costs related to the commercialization of Ayvakit/Ayvakyt.
Blueprint Medicines had cash, cash equivalents and investments worth $868.5 million as of Jun 30, 2024, compared with $735.6 million as of Mar 31, 2024.
2024 Outlook Raised
Based on the strong second-quarter performance, BPMC now expects to generate around $435-$450 million in global Ayvakit net product revenues for all approved indications in 2024 compared with the previous guidance of $390-$410 million.
The company believes that Ayvakit has a peak sales opportunity of more than $2 billion.
Operating expenses and cash burn are expected to decline in 2024.
Blueprint Medicines Corporation Price, Consensus and EPS Surprise
In the past 60 days, estimates for United Therapeutics’ 2024 earnings per share have improved from $24.48 to $25.59. Earnings per share estimates for 2025 have improved from $26.81 to $28.32. Year to date, shares of UTHR have rallied 49.1%.
UTHR’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 5.81%.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 48.9%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
In the past 60 days, estimates for Repare Therapeutics’ 2024 loss per share have narrowed from $2.42 to $2.35. Loss per share estimates for 2025 have narrowed from $3.29 to $3.21. Year to date, shares of RPTX have plunged 53.3%.
RPTX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 123.58%.
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Blueprint Medicines (BPMC) Down Despite Q2 Earnings Beat
Blueprint Medicines Corporation (BPMC - Free Report) reported second-quarter 2024 adjusted loss of 80 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.28. The company had reported a loss of $2.19 per share in the year-ago quarter.
Quarterly revenues of $138.2 million surpassed the Zacks Consensus Estimate of $105 million. Total revenues jumped almost 140% year over year.
Despite the better-than-expected results, shares of Blueprint Medicines were down 7.4% on Aug 1 following the earnings announcement.
However, the stock has rallied 8.7% year to date against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
Quarter in Detail
Blueprint Medicines’ total revenues comprise net product revenues from Ayvakit/Ayvakyt and collaboration revenues.
Ayvakit (avapritinib), an inhibitor of KIT and PDGFRA proteins, is approved for treating PDGFRA Exon 18 mutant gastrointestinal stromal tumors and advanced and indolent systemic mastocytosis (ISM).
In the second quarter, net product revenues from Ayvakit were $114.1 million, which grew 23.3% on a sequential basis and almost 186% on a year-over-year basis, driven by new patient starts, low discontinuation rates and a high compliance rate. Out of the total revenues generated from Ayvakit sales, $101.5 million came from the U.S. sales of the drug and $12.7 million in ex-U.S. sales.
The label expansion of Ayvakit/Ayvakyt in 2023 to treat ISM in adults in the United States and EU increased the eligible patient population of the drug, which has been driving robust growth in sales. ISM is chronic, due to which patients stay on therapy for longer durations.
Ayvakit is the first and only therapy approved for treating ISM. It has the potential to become a multibillion-dollar product and drive durable revenue growth for BPMC in the next few years.
Collaboration revenues totaled $24 million, up 35.8% on a year-over-year basis.
Another drug of BPMC, Gavreto (pralsetinib), is approved for metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer and RET-mutant and RET fusion-positive thyroid cancer.
The company used to co-develop Gavreto with Roche. However, in February 2023, Roche announced its decision to discontinue the collaboration agreement. Blueprint Medicines regained the global commercial rights to Gavreto in late February 2024. It did not record any net product revenues from Gavreto sales in the reported quarter.
Research and development (R&D) expenses totaled $84.3 million, down 23.4% from the year-ago quarter’s figure. The primary reason behind the decrease in R&D expenses was continued operational efficiency gains across the company’s portfolio, along with favorable timing of manufacturing of clinical study materials.
Selling, general and administrative expenses were $89.3 million, up 24.2% year over year. The uptick in such expenses was due to higher compensation and headcount costs related to the commercialization of Ayvakit/Ayvakyt.
Blueprint Medicines had cash, cash equivalents and investments worth $868.5 million as of Jun 30, 2024, compared with $735.6 million as of Mar 31, 2024.
2024 Outlook Raised
Based on the strong second-quarter performance, BPMC now expects to generate around $435-$450 million in global Ayvakit net product revenues for all approved indications in 2024 compared with the previous guidance of $390-$410 million.
The company believes that Ayvakit has a peak sales opportunity of more than $2 billion.
Operating expenses and cash burn are expected to decline in 2024.
Blueprint Medicines Corporation Price, Consensus and EPS Surprise
Blueprint Medicines Corporation price-consensus-eps-surprise-chart | Blueprint Medicines Corporation Quote
Zacks Rank & Stocks to Consider
Blueprint Medicines currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are United Therapeutics Corporation (UTHR - Free Report) , Halozyme Therapeutics, Inc. (HALO - Free Report) and Repare Therapeutics Inc. (RPTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for United Therapeutics’ 2024 earnings per share have improved from $24.48 to $25.59. Earnings per share estimates for 2025 have improved from $26.81 to $28.32. Year to date, shares of UTHR have rallied 49.1%.
UTHR’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 5.81%.
In the past 60 days, estimates for Halozyme’s 2024 earnings per share have improved from $3.69 to $3.90. Earnings per share estimates for 2025 have improved from $4.50 to $4.81. Year to date, shares of HALO have soared 48.9%.
HALO’s earnings beat estimates in three of the trailing four quarters and met the same on the remaining occasion, the average surprise being 9.40%.
In the past 60 days, estimates for Repare Therapeutics’ 2024 loss per share have narrowed from $2.42 to $2.35. Loss per share estimates for 2025 have narrowed from $3.29 to $3.21. Year to date, shares of RPTX have plunged 53.3%.
RPTX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 123.58%.