BioCryst Pharmaceuticals’ (NASDAQ:BCRX) first-quarter top-line and bottom-line exceeded expectations, driven by the positive performance of the company’s FDA (Food and Drug Administration)-approved drug product, ORLADEYO, which has the potential to reach $1 billion in peak sales. Despite more than 20% increase in the share price over the past month, BCRX stock is still trading at a discount, suggesting a runway for further growth. The company presents a compelling opportunity for value-oriented investors interested in biopharma with growth potential.
BioCryst’s Robust Treatment Candidate Pipeline
BioCryst Pharmaceuticals is a biotechnology company focused on improving the lives of those with complement-mediated and other rare diseases. It is developing novel oral small-molecule and protein therapeutics. The company has seen recent commercial success in its product, ORLADEYO (berotralstat), the first oral, once-daily plasma kallikrein inhibitor.
Growth in the new treatment is attributed to the successful transition of patients from receiving the drug for free to paid prescriptions, which resulted in higher than anticipated ORLADEYO revenues. The drug is not only gaining traction in the U.S. but internationally as well, where it’s contributing to 10% of total ORLADEYO net revenues.
In addition, the company has completed enrollment in the APeX-P pediatric trial. The data from this trial is expected to support a regulatory filing in 2025 for ORLADEYO to provide the drug to children as young as two years old.
BioCryst also has an array of highly differentiated rare disease products in its pipeline. The proof-of-concept trial for BCX10013, an oral Factor D inhibitor, is on track, and the company is planning to decide on partnering or discontinuation later this year. Further, the company plans to introduce BCX17725, a KLK-5 inhibitor for the treatment of Netherton syndrome, for which there is no currently approved treatment, into clinical trials by the end of 2024. Looking forward to 2025, BioCryst intends to advance avoralstat, a plasma kallikrein inhibitor, into a clinical trial of patients with diabetic macular edema (DME).
Analysis of BioCryst’s Financials
BioCryst Pharma recently disclosed better-than-expected Q1 2024 financial results. The company’s revenue of $92.8 million represented a significant year-over-year increase of 34.9% from the $68.8 million reported in Q1 2023 and beat analyst expectations of $85.60 million. The revenue boost was mainly driven by the net revenue from ORLADEYO, which rose 30% year-over-year to $88.9 million in Q1 2024. Also, the company posted earnings per share (EPS) of -$0.17, better than the analyst estimate of -$0.21.
As of the end of Q1 2024, BioCryst’s total cash and investments stood at $338.4 million, a decrease from $403.1 million a year ago. The company predicts that the remaining quarters of 2024 will see normalized operating cash use of around $10-$12 million per quarter, with the total cash at the end of 2024 projected to exceed $300 million.
Following accelerated patient reauthorization in the U.S., the company increased its 2024 global net ORLADEYO revenue forecast to $390-$400 million. The company projects its 2024 operating expenses in the range of $365-$375 million, mirroring 2023 levels. The company’s strategic financial management and revised ORLADEYO revenue guidance further bolster its confidence in achieving full-year operating profit in 2024, approaching positive EPS and cash flow in the second half of 2025, and targeting profitability with positive cash flow for 2026.
What is the Price Target for BCRX Stock?
Analysts following BioCryst have been constructive on the stock. For example, JMP Securities analyst Jonathan Wolleben recently raised the price target for the shares from $14 to $15 while reiterating a Buy rating. He noted that Orladeyo’s revenues are above consensus and thinks BioCryst can hit its guidance for future revenue.
Overall, BioCryst is rated a Strong Buy based on the recommendations and price targets assigned by six analysts over the past three months. The average price target for BCRX stock is $15.33, which represents an upside potential of 140.28% from current levels.
The stock has been trending up, climbing 26% in the past 90 days. It trades in the middle of its 52-week price range of $4.03 to $8.66 and shows positive price momentum, trading above its 20-day (6.22) and 50-day (5.73) moving averages. The stock is relatively undervalued, with a P/S ratio of 3.5x well below the Biotechnology industry average of 10.78x.
Bottom Line on BCRX
BioCryst Pharmaceuticals exhibits potential with a blockbuster treatment that could reach $1 billion in peak sales and a robust pipeline of other clinical-stage candidates. With shares trading at a discount while demonstrating positive price momentum, the company presents an appealing prospect for value-oriented investors seeking growth in biopharma.
