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Blueprint Medicines (BPMC) Up 8.7% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Blueprint Medicines (BPMC - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Blueprint Medicines due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

BPMC Beats on Q3 Earnings and Sales, Raises ’24 View

Blueprintreported third-quarter 2024 adjusted loss of 89 cents per share, narrower than the Zacks Consensus Estimate of a loss of 97 cents. The company had incurred a loss of $2.20 per share in the year-ago quarter.

Quarterly revenues of $128.2 million, generated entirely from the net product sales of Ayvakit, surpassed the Zacks Consensus Estimate of $126 million. Total revenues jumped 127% year over year. Ayvakit sales have increased 136% year over year, driven by new patient starts, low discontinuation rates and a high compliance rate.

Shares of the company gained 7% on Wednesday following the better-than-expected third-quarter results.

BPMC’s Q3 Results in Detail

Blueprint Medicines’ total revenues comprise net product revenues from Ayvakit/Ayvakyt and collaboration revenues.

Out of the total revenues generated from Ayvakit sales in the third quarter, $113.1 million came from the U.S. sales of the drug and $15.1 million in ex-U.S. sales. The company did not recognize any collaboration, license and other revenues in the reported quarter.

Research and development (R&D) expenses totaled $85.3 million, down 23% 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 $89.9 million, up 27% 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 $882.4 million as of Sept. 30, 2024, compared with $868.5 million as of June 30, 2024.

BPMC Raises 2024 Financial Outlook

Based on the strong third-quarter performance, Blueprint Medicines now expects to generate around $475-$480 million in global Ayvakit net product revenues for all approved indications in 2024 compared with the previous guidance of $435-$450 million. This could have also impressed investors and contributed to the stock price rise.

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.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 42.37% due to these changes.

VGM Scores

At this time, Blueprint Medicines has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Blueprint Medicines has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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