Tazeen Ahmad, an analyst from Bank of America Securities, reiterated the Buy rating on BioCryst (BCRX – Research Report). The associated price target was raised to $15.00.
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Tazeen Ahmad has given his Buy rating due to a combination of factors including BioCryst’s strategic decision to sell its European Orladeyo business to Neopharmed Gentili. This sale is expected to bring in up to $264 million, with $250 million received upfront, which will be used to retire all outstanding debt to Pharmakon. This move is anticipated to eliminate approximately $70 million in future interest payments, thereby strengthening the company’s financial position.
Additionally, the transaction is projected to result in annual operating cost savings of around $50 million. Despite the sale, BioCryst will continue to benefit from EU revenues in determining global royalty tiers, which is significant given that the majority of Orladeyo revenues are generated in the US. Furthermore, the company is poised to explore external business development opportunities with its improved cash position, and there is potential upside from its pipeline, including the anticipated data from its BCX17725 and avoralstat trials. These factors contribute to a positive outlook for BioCryst, justifying the Buy rating with a price objective of $15.
Ahmad covers the Healthcare sector, focusing on stocks such as Incyte, ACADIA Pharmaceuticals, and Argenx Se. According to TipRanks, Ahmad has an average return of -3.6% and a 47.54% success rate on recommended stocks.
In another report released yesterday, Wedbush also maintained a Buy rating on the stock with a $18.00 price target.