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BPMC Beats on Q3 Earnings and Sales, Raises '24 View, Stock Up

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Blueprint Medicines Corporation (BPMC - Free Report) reported third-quarter 2024 adjusted loss of 89 cents per share, narrower than the Zacks Consensus Estimate of a loss of 97 cents. The company had incurred a loss of $2.20 per share in the year-ago quarter.

Quarterly revenues of $128.2 million, generated entirely from the net product sales of Ayvakit, surpassed the Zacks Consensus Estimate of $126 million. Total revenues jumped 127% year over year. Ayvakit sales have increased 136% year over year, driven by new patient starts, low discontinuation rates and a high compliance rate.

Shares of the company gained 7% on Wednesday following the better-than-expected third-quarter results.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

BPMC’s Q3 Results in Detail

Blueprint Medicines’ total revenues comprise net product revenues from Ayvakit/Ayvakyt and collaboration revenues.

Ayvakit (avapritinib), an inhibitor of KIT and PDGFRA proteins, is approved for treating PDGFRA Exon 18 mutant gastrointestinal stromal tumors and advanced and indolent systemic mastocytosis (ISM). Out of the total revenues generated from Ayvakit sales in the third quarter, $113.1 million came from the U.S. sales of the drug and $15.1 million in ex-U.S. sales.

The label expansion of Ayvakit/Ayvakyt in 2023 to treat ISM in adults in the United States and EU increased the eligible patient population of the drug, which has been driving robust growth in sales. ISM is chronic, due to which patients stay on therapy for longer durations.

Ayvakit is the first and only therapy approved for treating ISM. It has the potential to become a multibillion-dollar product and drive durable revenue growth for BPMC in the next few years.

The company did not recognize any collaboration, license and other revenues in the reported quarter. Blueprint Medicines’ shares have gained 49% in the past year compared with the industry’s 9.2% growth.

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Another drug of BPMC, Gavreto (pralsetinib), is approved for metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer and RET-mutant and RET fusion-positive thyroid cancer.

Following the severance of ties with Roche for Gavreto, Blueprint Medicines signed a deal with Rigel Pharmaceuticals in February 2024, whereby Rigel purchased the U.S. rights to research, develop, manufacture and commercialize the drug. The transaction was closed in June 2024. Per the agreement terms, Blueprint Medicines is eligible to receive contingent specified regulatory and commercial milestone payments, in addition to certain tiered percentage royalties on annual net sales of Gavreto in the United States.

Research and development (R&D) expenses totaled $85.3 million, down 23% from the year-ago quarter’s figure. The primary reason behind the decrease in R&D expenses was continued operational efficiency gains across the company’s portfolio, along with favorable timing of manufacturing of clinical study materials.

Selling, general and administrative expenses were $89.9 million, up 27% year over year. The uptick in such expenses was due to higher compensation and headcount costs related to the commercialization of Ayvakit/Ayvakyt.

Blueprint Medicines had cash, cash equivalents and investments worth $882.4 million as of Sept. 30, 2024, compared with $868.5 million as of June 30, 2024.

BPMC Raises 2024 Financial Outlook

Based on the strong third-quarter performance, Blueprint Medicines now expects to generate around $475-$480 million in global Ayvakit net product revenues for all approved indications in 2024 compared with the previous guidance of $435-$450 million. This could have also impressed investors and contributed to the stock price rise.

The company believes that Ayvakit has a peak sales opportunity of more than $2 billion.

Operating expenses and cash burn are expected to decline in 2024.

BPMC’s Zacks Rank & Other Stocks to Consider

Blueprint Medicines currently carries a Zacks Rank #2 (Buy). 

Some other top-ranked pharma stocks are Bayer (BAYRY - Free Report) , Allogene Therapeutics (ALLO - Free Report) and Novartis (NVS - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Estimates for Bayer’s 2024 earnings per share (EPS) have increased from $1.37 to $1.38 over the past 60 days, while the same for 2025 have remained constant at $1.44. BAYRY’s shares have lost 26.2% year to date. 

Allogene Therapeutics’ loss estimates have remained constant at $1.41 per share for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.45 per share. ALLO’s shares have lost 17.8% year to date.

Allogene Therapeutics’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 11.82%.

Novartis’ EPS estimates have risen from $7.48 to $7.56 per share for 2024 over the past 60 days, while that for 2025 has increased from $8.29 to $8.34. NVS’ shares have risen 8.8% year to date.

Novartis’ earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.22%.

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