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Blueprint (BPMC) Stock Gains 26% on Q3 Earnings & Sales Beat

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Blueprint Medicines Corporation (BPMC - Free Report) reported a loss of $2.20 per share for the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $2.39. The company had incurred a loss of $2.23 per share in the year-ago quarter.

Quarterly revenues of $56.6 million also surpassed the Zacks Consensus Estimate of $50 million. The company reported total revenues of $65.8 million in the year-ago quarter.

Shares of BPMC soared 25.6% on Thursday in response to the better-than-expected third-quarter results and phenomenal performance of the company’s only marketed drug, Ayvakit/Ayvakyt (avapritinib). Shares of Blueprint have gained 27.8% year to date against the industry’s decline of 22.7%.

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Quarter in Detail

Blueprint Medicines’ total revenues comprised net product revenues from Ayvakit sales and collaboration revenues.

The third quarter of 2023 marked the first full quarter following Ayvakit’s label expansion to include the treatment of indolent systemic mastocytosis (ISM) in adults in the United States. Net product revenues from Ayvakit sales were $54.2 million, which beat the Zacks Consensus Estimate of $43.3 million for the total sales of the drug in the reported quarter. Sales of the drug grew 36% on a sequential basis and 90% on a year-over-year basis. Our estimate for total revenues generated from Ayvakit sales was pegged at $33.7 million. Out of the total revenue generated from Ayvakit sales, $49.1 million came from the U.S. sales of the drug.

Per Blueprint, approximately 800 patients are currently on Ayvakit treatment in the United States at the end of the third quarter of 2023, which indicated an increase of more than 200 patients since last quarter, driven primarily by ISM.

Ayvakit in the ISM indication is yet to be approved in the EU.

Collaboration revenues were $2.4 million, missing the Zacks Consensus Estimate of $5.65 million, as well as our estimate of $15.6 million. Blueprint recognizes collaboration revenues from the agreements with CStone Pharmaceutical and Roche (RHHBY - Free Report) .

In June 2018, the company inked a collaboration contract with CStone Pharmaceuticals to develop and commercialize its three clinical-stage candidates in Mainland China, Hong Kong, Macau and Taiwan, either as monotherapies or combo regimes. Blueprint Medicines is eligible to receive future milestone fees.

BPMC has transferred the responsibilities of booking the 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. As a result, Blueprint Medicines’ current product revenues solely comprise sales of Ayvakit. However, in February 2023, the company announced initiating the process of regaining development and commercialization rights for Gavreto from Roche.

The termination of the collaboration agreement will become effective in February 2024, at which time Blueprint will regain commercialization and development rights to Gavreto from Roche worldwide, excluding the CStone Territory.

Research and development (R&D) expenses were $110.3 million, down 13.8% from the year-ago figure. The primary reason for the decrease in R&D expenses was continued operational efficiency gains across Blueprint’s portfolio along with favorable timing of manufacturing of clinical trial materials.

Selling, general and administrative expenses were $70.7 million, up 22.7% year over year. The uptick in such expenses is due to higher costs related to the commercialization of Ayvakit in ISM, as well as increased compensation-related costs driven by improved headcount.

Blueprint Medicines had cash, cash equivalents and investments worth $827.2 million as of Sep 30, 2023, compared with $836.6 million as of Jun 30, 2023.

Zacks Rank and Stocks to Consider

Blueprint currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same industry are Anixa Biosciences (ANIX - Free Report) and Adicet Bio, Inc. (ACET - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 30 days, the Zacks Consensus Estimate for Anixa Biosciences’ 2023 loss per share has remained constant at 32 cents. The estimate for Anixa Biosciences’ 2024 loss per share has remained constant at 37 cents. Year to date, shares of ANIX have lost 25.9%.

ANIX beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 26.29%. 

In the past 30 days, the estimate for Adicet Bio’s 2023 loss per share has remained constant at $2.93. The estimate for Adicet’s 2024 loss per share has remained constant at $2.40. Year to date, shares of ACET have fallen 85.7%.

ACET’s earnings beat estimates in two of the trailing four quarters, missing the mark on the other two occasions, delivering an average negative surprise of 7.70%.

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