JP Morgan initiated coverage on Blueprint Medicines Corporation (NASDAQ:BPMC), a biotech company focused on modulating immune mast cells.

In 2023, the FDA approved Blueprint Medicines’ Ayvakit (avapritinib) as the first, only treatment for indolent systemic mastocytosis (ISM).

In the third quarter of 2024, Ayvakit reported net product revenues of $128.2 million, including $113.1 million in the U.S. and $15.1 million ex-U.S., representing 136% growth year over year.

Blueprint Medicines anticipates approximately $475 million to $480 million in global Ayvakit net product revenues in 2024, an increase from  $435 million to $450 million in the previous range.

This updated guidance is based on continued growth in patients on therapy, continued favorability in compliance and other performance factors, and stronger-than-expected performance outside of the U.S.

JP Morgan initiates with an Overweight rating and a price target of $126, an upside of almost 30%.

The analyst’s positive outlook is based on Ayvakit’s strong launch and growing success. Early adoption has been solid, and while Ayvakit is currently approved for three uses, most attention is on its performance in ISM.

Key factors support the belief that Ayvakit could surpass $2 billion in peak sales. In less than four years on the market, annual revenue already exceeds $475 million, highlighting its significant growth potential.

“Heading into 1Q25, we also believe BPMC could be seen as an attractive target for strategic partnerships, which could boost shares,” JP Morgan writes.

With Ayvakit’s launch being a major focus for Blueprint Medicines, the analyst says that investors are largely overlooking its wildtype KIT (‘808) program.

This program has the potential to open the door to larger markets, including treatments for urticaria and asthma. We look forward to more details on Blueprint Medicines’ plans during their scientific seminar later today and expect Phase 1 trial data in early 2025.

Price Action: BPMC stock is up 0.25% at $97.12 at last check Thursday.

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