Blueprint Medicines Earns Higher Price Targets Post FDA Approval: Analysts Optimistic on Ayvakit's Future

Shares of Blueprint Medicines Corporation BPMC after it received FDA approval for its Ayvakit (avapritinib) as the first, only treatment for indolent systemic mastocytosis.

Needham upgraded the model and raised the price target from $65 to $67, with a Buy rating.

The analyst notes the management's confidence in reaching >$1.5 billion in peak sales for Ayvakit. The analyst remains optimistic about the launch trajectory.

The efficacy primary endpoint was calculated differently by FDA on the label. Still, the management stated that the focus of physicians has been on the broad efficacy profile of Ayvakit.

With a Buy rating, HC Wainwright increased the price target from $75 to $85.

The analyst says the stock may continue to be range-bound within the new $85 PT (until further launch dynamics are clear). It says there is plenty of room for topline beats in the upcoming quarters, considering the potential market synergies and learnings that Blueprint can leverage, given their experience with ADvSM.

Wedbush analyst maintains the 75 price target and the Outperform rating and says iSM approval unlocks blockbuster potential for Ayvakit.

Management expects that Ayvakit's iSM launch will significantly contribute to growth in 2H23 and beyond. Wedbush says that the key focus for investors is commercial metrics for Ayvakit in iSM.

Barclays has updated the price target from $44 to $46, with an Equal Weight rating.

Price Action: BPMC shares are up 3.79% at $58.38 on the last check Tuesday.