Blueprint Medicines (BPMC) Q3 Earnings Beat, Revenues Rise Y/Y

Zacks Equity Research
·4-min read

Blueprint Medicines Corporation BPMC delivered earnings of $11.16 per share in the third quarter of 2020, comprehensively beating the Zacks Consensus Estimate of $6.49. The bottom line also rebounded from the year-ago quarter’s loss of $1.93 per share.

Total revenues of $745.1 million grew significantly year over year and also surpassed the Zacks Consensus Estimate of $565.9 million. The top line includes $6.1 million of net product revenues from the sales of Ayvakit (avapritinib) and $0.2 million from the newly-approved Gavreto (pralsetinib). Collaboration revenues were $738.8 million, which were drawn from the agreements with CStone and Roche RHHBY. In the year-ago quarter, Blueprint Medicines recorded $9.1 million as collaboration revenues.

Shares of Blueprint Medicines have rallied 30.7% so far this year against the industry’s decline of 6.9%.

Quarter in Detail

Research and development expenses were $74.2 million, down 8.9% from the year-ago quarter’s figure, mainly owing to the reimbursement received under the Roche collaboration deal for pralsetinib.

Selling, general and administrative expenses were $37.4 million, up 46.1% year over year on account of higher personnel fees, infrastructure costs and other commercial costs.

Blueprint Medicines had cash, cash equivalents and investments worth $1.4 billion as of Sep 30, 2020, much higher than $650.3 million as of Jun 30, 2020. The strengthened cash position during the third quarter was mainly owing to an upfront payment of $775 million received from Roche.

Ayvakit & Other Pipeline Updates

In January 2020, the company’s lead product Ayvakit was approved by the FDA for treating unresectable or metastatic gastrointestinal stromal tumor (GIST), harboring a PDGFRA exon 18 mutation, including PDGFRA D842V mutations in adults. Sales of the drug grew 7% on a sequential basis during the reported quarter.

Notably, in September 2020, the European Commission (EC) granted a conditional marketing authorization to Ayvakyt (brand name of Ayvakit in Europe) as a monotherapy for the treatment of adult patients with unresectable or metastatic GIST, harboring the PDGFRA D842V mutation. The approval in Europe should boost the drug’s sales in the quarters ahead.

Moreover, in the same month, Blueprint Medicines announced positive top-line data from the phase I EXPLORER and the phase II PATHFINDER studies, which evaluated Ayvakit for the treatment of patients with advanced systemic mastocytosis (SM), a rare, debilitating disease. The company plans to submit a supplemental new drug application (sNDA) to the FDA for Ayvakit in the fourth quarter of 2020 to treat patients with advanced SM. A potential label expansion should also drive sales in the days ahead.

We note that the month of September witnessed a huge success for Blueprint Medicines. During this time, the company’s second precision medicine Gavreto was approved by the FDA for the treatment of adults with metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer (NSCLC).

Blueprint Medicines is co-developing Gavreto with Roche for attending patients with various types of RET-altered thyroid cancers and other solid tumors. Both companies will co-commercialize Gavreto in the United States while Roche alone will commercialize the drug outside the country.

Meanwhile, the FDA granted a Priority Review to Gavreto for the treatment of advanced/metastatic RET-mutant medullary thyroid cancer (MTC) and RET fusion-positive thyroid cancer. A decision on the same is expected by Feb 28 2021.

Blueprint Medicines Corporation Price, Consensus and EPS Surprise

Blueprint Medicines Corporation Price, Consensus and EPS Surprise
Blueprint Medicines Corporation Price, Consensus and EPS Surprise

Blueprint Medicines Corporation price-consensus-eps-surprise-chart | Blueprint Medicines Corporation Quote

Zacks Rank & Stocks to Consider

Blueprint Medicines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the biotech sector include Horizon Therapeutics Public Limited Company HZNP and Fulcrum Therapeutics, Inc. FULC, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Horizon’s earnings estimates have been revised 2.8% upward for 2020 and 4.9% for 2021 over the past 60 days. The stock has skyrocketed 113.4% year to date.

Fulcrum Therapeutics’ loss per share estimates have narrowed 1.1% for 2020 and 0.9% for 2021 over the past 60 days.

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