BridgeBio gene-therapy results mixed, but ‘still a win,’ says BofA

BofA analyst Jason Zemansky says BridgeBio provided “mixed updates” from two gene-therapy phase 1/2 programs, announcing positive results for BBP-812 for Canavan Disease in CANaspire, but “underwhelming outcomes” for BBP-631 for CAH in the ADventure trial. The FDA has granted ‘812 RMAT designation, providing “a clear developmental path forward,” while the company is opting to end development of ‘631, the analyst noted. The firm ultimately suspects few gave either program much value in their models, and while “underwhelming,” the firm adds there were encouraging signals in ADventure, offering a measure of support for the vector and BridegeBio’s broader gene therapy program. While the positive ‘812 results validate BridgeBio’s platform, the firm says it “wouldn’t be surprised” if the company spins or licenses it out over concerns it distracts from the rapidly progressing late-stage pipeline. BofA maintains a Buy rating and $42 price target on BridgeBio shares, which fell 2% to close at $29.99 on Tuesday.