Hold Rating on Blueprint Medicines Amid Sanofi Acquisition and Market Uncertainties

In a report released today, Judah Frommer from Morgan Stanley maintained a Hold rating on Blueprint Medicines (BPMC – Research Report), with a price target of $129.00.

Judah Frommer has given his Hold rating due to a combination of factors surrounding Blueprint Medicines. The recent agreement for Sanofi to acquire Blueprint Medicines has influenced this rating, as the acquisition price of $129 per share, along with contingent value rights (CVRs), reflects a significant premium over the current share price. This acquisition aligns with Sanofi’s strategic interests in rare diseases and immunology, and is expected to be beneficial to Sanofi’s financial metrics in the long term.
Despite the positive outlook for Blueprint’s early-stage drug, BLU-808, particularly in the chronic urticaria indication, there remains uncertainty regarding the achievement of the clinical and regulatory milestones tied to the CVRs. Additionally, broader macroeconomic factors, such as pricing and tariffs affecting the biotech sector, contribute to the cautious stance. Consequently, the Hold rating reflects a balanced view of the potential risks and rewards associated with Blueprint Medicines at this juncture.

In another report released yesterday, Citi also upgraded the stock to a Hold with a $129.00 price target.