Bank Of America Upgrades BioCryst As Financing Overhang Lifts Partially

BioCryst Pharmaceuticals, Inc. BCRX completed a $55 million equity raise earlier this week.

While further financing may be needed to make the company launch ready, the recent equity raise has provided “some cushion,” according to Bank of America.

The Analyst

BofA’s Tazeen Ahmad upgraded BioCryst Pharmaceuticals from Neutral to Buy, while lowering the price target from $5 to $4.

The Thesis

Doctor checks conducted after the release of pivotal ApeX-2 study results in hereditary angioedema (HAE) had indicated interest in BioCryst Pharma’s ‘7353, given the convenience of its oral dosing, Ahmad said in the upgrade note.

The analyst continued to estimate unrisk-adjusted peak sales of $601 million in 2027 for ‘7353 in prophylactic HAE. He added that the US price of the treatment is estimated at around $400,000 per patient per year, after assuming a discount to competition.

The New Drug Application (NDA) filing of ‘7353 in prophylactic HAE with the European Union this quarter and Japan submission in the first quarter of 2020 are likely to be key near-term catalysts for the stock, Ahmad said.

He mentioned other near-term catalysts for the stock as the Phase III trial for ‘7353 in acute HAE beginning in 2020 and proof-of-concept data in paroxysmal nocturnal hemoglobinuria (PNH) from ongoing ‘9930 study in the first half of 2020.

Price Action

Shares of BioCryst Pharma were up 13.56% to $1.80 at the time of publishing on Friday.