BofA: We're Upgrading Biocryst Pharmaceuticals

In a report published Monday, analysts at Bank of America Merrill Lynch upgraded BioCryst Pharmaceuticals, Inc. BCRX to Neutral. The price target was raised from $8 to $12. Data released by Dyax Corp. DYAX suggests that there could be a bigger than expected market for BioCryst's BCX4161 drug. "[W]e have higher conviction that targeting this protein (plasma kallikrein) should lower breakthrough attack risk with ‘4161 and that more HAE patients will seek prophylactic treatment if offered better dosing regimens options to current standard of care Cinryze (2-3x/week IV infusion)," the analysts said. Given this data, Bank of America Merrill Lynch believes that BioCrysts peak for BCX4161 could be 835 patients and 20 percent US market share. The analysts also expect the company to price the drug higher than earlier expected in the US, with a quicker ramp. In addition, the analysts expect the drug to be more popular among low-attack-frequency patients who have lower risk of breakthrough attacks. Data from the OPuS-2 trial for BCX4161 is expected in 3Q15. However, Bank of America Merrill Lynch also expects BioCryst to move BCX7353, its one pill a day candidate to phase 1 trials, following positive results from the pre-clinical trials on non-human primates. The analysts expect the company to launch BCX4161 in the US in 2018.