Blueprint Medicines Stock Gets Price Target Cut Amid Lower Than Expected Ayvakit Uptake

HC Wainwright lowered the price target on Blueprint Medicines Corp BPMC, keeping the Buy rating.
Blueprint expects to submit a supplemental application for Ayvakit in non-advanced systemic mastocytosis (non-ADvSM) in 4Q22 (expected launch in mid-2023), with the longer-term value being driven by an expanding suite of precision medicines aimed at NSCLC and beyond.
The analyst has long believed that Ayvakit will gain approval in non-ADvSM but concurrently believe that the elucidation and treatment of these patients will be an uphill battle for Blueprint.
The company has outlined the initial launch strategy to concentrate on patients with moderate to severe disease (~7,500 pts) to promote faster patient uptake, but the strategy omits another 22K undiagnosed or misdiagnosed patients, leaving room for a potential blockbuster opportunity, the analyst writes.
Lower-than-expected initial penetration in SM AHN compared to other subtypes, coupled with COVID-19 impacts and FX headwinds, further adds to the overall slowing uptake seen for Ayvakit.
Blueprint lowered Ayvakit’s FY22 sales guidance to $108-111 million, down from $115-130 million, leaving investors speculating how Blueprint’s experience in advanced SM will translate to non-ADvSM.
Price Action: BPMC shares are down 2.27% at $47.14 on the last check Wednesday.

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