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Blueprint Medicines (BPMC) Q3 Earnings & Sales Top Estimates

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Blueprint Medicines Corporation (BPMC - Free Report) incurred a loss of $1.93 per share in the third quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of $2.19 but wider than the year-ago quarter’s loss of $1.66.

Collaboration revenues, comprising the company’s total revenues, came in at $9.1 million, reflecting a significant rise year over year. The top line also surpassed the Zacks Consensus Estimate of $4 million.

Blueprint Medicines has no approved product in its portfolio at the moment. Revenues generated by the company are all related to its partnership with Roche (RHHBY - Free Report) and CStone Pharmaceuticals for the development and commercialization of its pipeline candidates.

Shares of Blueprint Medicines were up more than 5% following earnings announcement on Tuesday. In fact, the stock has surged 31% so far this year, outperforming the industry’s increase of 0.7%.

Quarter in Detail

In the quarter, research and development expenses were $81.5 million, up 26.2% from the year-ago figure, mainly due to higher spending associated with the lead candidates’ development and increased personnel costs.

General and administrative expenses were $25.6 million, up 33.3% year over year on account of higher personnel costs, professional fees and pre-commercial planning activities.

Blueprint Medicines had cash, cash equivalents and marketable securities of $594.5 million as of Sep 30, 2019, lower than the sequential quarter’s $667.3 million.

Update on Avapritinib

The company’s lead pipeline candidate avapritinib, an inhibitor of KIT and PDGFRA proteins, is being evaluated in several late-stage studies for cancer indications. This August, the FDA accepted the new drug application (NDA) for avapritinib to treat patients with PDGFRA Exon 18 mutant gastrointestinal stromal tumors (GIST), regardless of any prior therapy and the fourth-line GIST. The indication currently has no approved therapy.

In October, Blueprint Medicines announced that the FDA intends to administratively split the proposed above-mentioned indications for avapritinib into two separate NDAs. The regulatory agency has set an action date of Feb 14, 2020 for both indications.

In July, the European Medicines Agency (EMA) validated the marketing application for avapritinib to treat adult patients with PDGFRα D842V mutant GIST, regardless of any prior therapy and the fourth-line GIST.

During the quarter, the company completed its target enrollment in the phase III VOYAGER study, which is evaluating the safety and efficacy of avapritinib compared to Bayer’s (BAYRY) Stivarga (regorafenib) in patients with third- and fourth-line GIST.

Blueprint Medicines plans to file a supplemental NDA for avapritinib to the FDA in the second half of 2020 for addressing the third-line GIST.

Other than GIST, Blueprint Medicines is pursuing a broad clinical development program for avapritinib to treat the advanced, indolent and smoldering forms of systemic mastocytosis (SM).

Avapritinib is currently being evaluated in two studies, namely the phase I EXPLORER clinical study and the registration-enabling phase II PATHFINDER study for advanced SM. The company plans to submit an NDA for avapritinib to address the advanced SM indication in the first quarter of 2020.

Blueprint Medicines Corporation Price, Consensus and EPS Surprise

Zacks Rank & Other Stocks to Consider

Blueprint Medicines currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks from the healthcare sector include ProQR Therapeutics N.V. (PRQR - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) , both flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ProQR Therapeutics’ loss per share estimates have been narrowed 6.3% for 2019 and 0.6% for 2020 over the past 60 days.

Anika’s earnings estimates have been revised 16% upward for 2019 and 19.1% for 2020 over the past 60 days. The stock has soared 86.3% year to date.

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