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Blueprint Medicines (BPMC) Q3 Earnings & Revenues Top Mark

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Blueprint Medicines Corporation (BPMC - Free Report) reported a loss of $2.23 per share for third-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of $2.51. The loss was also narrower than our estimate of a loss of $2.44 per share. The company had reported a loss of $2.00 per share in the year-ago quarter.

Quarterly revenues of $66 million also surpassed the Zacks Consensus Estimate of $43 million. Sales were up significantly from the year-ago figure of $24.2 million.

Total revenues were higher than our estimate of $43.9 million in the reported quarter.

Shares of Blueprint Medicines were down 6.9% on Tuesday following the announcement of the results. The stock has plunged 55% this year compared with the industry’s decline of 21.9%.

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Quarter in Detail

Since the company has transferred the responsibilities of booking U.S. product sales of Gavreto (pralsetinib) to Roche (RHHBY - Free Report) on Jul 1, 2021, Blueprint Medicines only records its share of profits for the drug in its financial results.

Blueprint Medicines and Roche are co-developing Gavreto, which has been approved for treating patients with various types of RET-altered thyroid cancers and other solid tumors.

RHHBY reported Gavreto product sales of 20 million CHF in the year-to-date period.

Blueprint Medicines’ total revenues of $66 million comprised net product revenues from Ayvakit (avapritinib) sales, collaboration revenues and license revenues-related party. Net product revenues from Ayvakit sales were $28.6 million. Sales of the drug grew slightly on a sequential basis and 65.8% on a year-over-year basis.

Collaboration revenues were $9.8 million, primarily generated from the agreements with CStone Pharmaceutical and Roche.

License revenues from the related party were $27.5 million in the third quarter of 2022. The year-over-year surge in total revenues can be attributed to license revenues.

Research and development expenses were $128 million, up 51.6% from the year-ago figure, owing to higher costs associated with clinical studies and increased costs due to early discovery efforts.

Selling, general and administrative expenses were $57.6 million, up 15.7% year over year, on account of higher costs related to the commercialization of Ayvakit/Ayvakyt (brand name of Ayvakit in Europe).

Blueprint Medicines had cash, cash equivalents and investments worth $1,192.6 million as of Sep 30, 2022, higher than $947.2 million as of Jun 30.

2022 Guidance

Blueprint Medicines expects to achieve the high end of the total revenue guidance it previously provided for full-year 2022, which is in the range of $180-$200 million. The Zacks Consensus Estimate for the same currently stands at $190.57 million, while our estimate is pegged at $192.3 million.

Net Ayvakit revenues are now expected in the range of $108-$111 million for 2022 compared with the earlier projection of $115-$130 million.

Pipeline Updates

Blueprint Medicines plans to submit a supplemental new drug application for Ayvakit for treating non-advanced systemic mastocytosis (“SM”) later in the fourth quarter of 2022. A potential label expansion for Ayvakit is likely to boost sales of the drug in the days ahead.

A type II variation marketing authorization application for Ayvakit in non-advanced SM is expected to be filed with the European Medicines Agency next year.

Zacks Rank & Stocks to Consider

Blueprint Medicines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Akero Therapeutics, Inc. (AKRO - Free Report) and Atea Pharmaceuticals, Inc. (AVIR - Free Report) , both sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Loss per share estimates for Akero Therapeutics narrowed 6.9% for 2022 and 4.8% for 2023 in the past 60 days.

Earnings of Akero Therapeutics surpassed estimates in three of the trailing four quarters and missed on the other occasion. AKRO delivered an earnings surprise of 7.66% on average.

Loss per share estimates for Atea Pharmaceuticals narrowed 10.9% for 2022 and 9.5% for 2023 in the past 60 days.

Earnings of Atea Pharmaceuticals surpassed estimates in three of the trailing four quarters and missed on the other occasion. AVIR delivered a negative earnings surprise of 58.74% on average.

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