BridgeBio Pharma (BBIO) is capturing attention with its unique approach to developing gene-based therapies for cancer and genetic-driven ailments. With a robust pipeline including late-stage clinical candidates like Acoramidis, Encaleret, BBP-418, and Infigratinib, BridgeBio offers considerable potential, backed by expected milestones in the near future. The stock is up 10% in the past 90 days, with the average analysts’ price target suggesting significantly more room to run.
Due to its promising therapeutic focus and impending data releases, BridgeBio is an interesting investment opportunity with potential upside.
BridgeBio’s Robust Pipeline
BridgeBio Pharma is a commercial-stage biotech company that develops and delivers transformative medicines to people suffering from genetic diseases and cancers. The company currently has multiple candidates in various stages of clinical trials.
One of its leading candidates is AG10 (Acoramidis), an oral TTR stabilizer in Phase 3 trials for treating TTR amyloidosis. Recent studies presented at the 2024 International Symposium of Amyloidosis (ISA) and European Society of Cardiology Heart Failure (ESC-HF) Congress 2024 showed that Acoramidis was effective in reducing all-cause mortality, cardiovascular mortality, and hospitalization in ATTR-CM patients, with observable benefits starting from the third month of treatment.
Another notable candidate, BBP-418, for treating limb-girdle muscular dystrophy type 2I/R9 (LGMD2I/R9), has surpassed its interim analysis enrollment target for its Phase 3 FORTIFY study. Recent interactions with the U.S. FDA have reinforced the potential of accelerated approval for this drug.
One more promising treatment in the pipeline that’s been granted Fast Track Designation is low-dose Infigratinib, an oral FGFR1-3 selective tyrosine kinase inhibitor under Phase 3 clinical trials to treat achondroplasia.
Analysis of BridgeBio’s Recent Financial Results
The company recently reported results for Q2 2024. Revenue was $2.17 million, missing analysts’ expectations of $3.57 million. However, it marked an increase compared to the same period in 2023, primarily due to the recognition of services revenue under exclusive license and collaboration agreements with Bayer (BAYRY) and Kyowa Kirin (KYKOF). Operating costs and expenses also increased compared to the prior year due to the rise in selling, general and administrative expenses, and research and development expenses.
The company reported a net loss attributable to common stockholders of $73.5 million for the quarter, a reduction from the losses in the previous year. Earnings per share of $0.39 exceeded consensus projections of -$1.00.
As of the quarter’s end, BridgeBio had cash, cash equivalents, marketable securities, and short-term restricted cash totaling $587.2 million.
What Is the Price Target for BBIO Stock?
The stock has been on a roller-coaster ride, once exceeding $70, then plummeting to $5. However, despite the volatility, the stock has posted a slight gain of 4% in the past year. It trades near the middle of its 52-week price range of $21.62 – $44.32 while demonstrating positive price momentum by trading above its 20-day (26.22) and 50-day (26.19) moving averages.
Analysts following the company have been constructive on BBIO stock. For instance, Piper Sandler analyst Biren Amin recently initiated coverage on the stock with an Overweight rating and a $46 price target. He anticipates near-term catalysts, including the launch of Acoramidis in the growing ATTR cardiomyopathy market this year.
BridgeBio Pharma is rated a Strong Buy based on the recommendations and price targets assigned by 12 analysts. The average price target for BBIO is $47.56, representing a potential 54.92% upside from current levels.
Bottom Line on BBIO
BridgeBio’s robust pipeline has seen continual advancements, FDA acceleration, and positive momentum in clinical trials. With potential near-term catalysts, BBIO offers a compelling investment opportunity with significant potential for growth.
