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Blueprint Medicines (BPMC) Up 24.8% in Past 6 Months: Here's Why

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Shares of Blueprint Medicines Corporation (BPMC - Free Report) have rallied 24.8% in the past six months against the industry’s decrease of 18.7%.

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The company has made steady progress with its lead drug, Ayvakit (avapritinib), approved by the FDA for the treatment of adult patients with unresectable or metastatic gastrointestinal stromal tumors (“GIST”), harboring a PDGFRA exon 18 mutation, including PDGFRA D842V mutations, in this time frame. The European Commission has granted conditional marketing authorization to Ayvakyt as a monotherapy for the treatment of adult patients with unresectable/metastatic GIST, harboring the PDGFRA D842V mutation.

Ayvakit/Ayvakyt has witnessed strong uptake since its launch.

In June 2021, the FDA approved Ayvakit for a new indication – advanced systemic mastocytosis (“SM”), a rare and debilitating disease. Ayvakit is being evaluated in the phase II PIONEER study for treating non-advanced SM.

Blueprint Medicines is co-developing another cancer drug, Gavreto (pralsetinib), with Roche (RHHBY - Free Report) for treating patients with various types of RET-altered thyroid cancers and other solid tumors.

In July 2021, Blueprint Medicines transferred the responsibilities of booking U.S. product sales of Gavreto to Roche. The company only records the share of profit and loss for Gavreto in financial results and does not record any net product revenues from Gavreto sales.

The FDA approved Gavreto for treating advanced/metastatic RET-mutant and RET fusion-positive thyroid cancer, in December 2020. Gavreto is also approved for the treatment of adults with metastatic RET fusion-positive non-small-cell lung cancer.

This apart, Blueprint Medicines has other promising pipeline candidates that are progressing well, targeting various cancer indications.

In December 2021, Blueprint Medicines closed the previously announced acquisition of privately held biopharmaceutical company, Lengo Therapeutics. The acquisition will expand Blueprint Medicines’ precision oncology therapies and transform treatment for patients with EGFR-driven lung cancer. The acquisition added Lengo Therapeutics’ lead compound, LNG-451, to Blueprint Medicines’ portfolio.

LNG-451, a potential best-in-class oral precision therapy, is currently being developed for the treatment of non-small cell lung cancer in patients with EGFR exon 20 insertion mutations.

Blueprint Medicines’ current product revenues solely comprise sales from Ayvakit, which narrows its revenues stream. Hence, any regulatory setback for the drug could hurt the stock in the days ahead.

Also, Ayvakit faces competition from Deciphera Pharmaceuticals' (DCPH - Free Report) Qinlock (ripretinib), which is approved for the treatment of fourth-line GIST. In November 2021, the European Commission approved Qinlock for the same indication.

Deciphera is looking to streamline commercial operations for Qinlock in the United States and focus on commercialization efforts on a select number of key European markets for the medicine.

Zacks Rank & Stock to Consider

Blueprint Medicines currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the biotech sector is Sarepta Therapeutics, Inc. (SRPT - Free Report) , which has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sarepta Therapeutics’ loss per share estimates have narrowed 28.2% for 2021 and 25.2% for 2022, over the past 60 days.

Earnings of Sarepta Therapeutics have surpassed estimates in two of the trailing four quarters, and missed the same on the other two occasions.