In a report released today, Derek Archila from Wells Fargo maintained a Buy rating on Blueprint Medicines (BPMC – Research Report), with a price target of $143.00.
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Derek Archila has given his Buy rating due to a combination of factors surrounding the acquisition of Blueprint Medicines by Sanofi. The acquisition deal, valued at up to $135 per share, represents a significant premium over the previous closing price, indicating a strong valuation for the company. This includes an upfront cash payment and contingent value rights tied to the development milestones of BLU-808, which suggests confidence in the future potential of Blueprint’s pipeline.
Furthermore, the strategic fit of Sanofi as an acquirer, with its established presence in rare diseases and immunology, enhances the prospects for Blueprint’s flagship product, Ayvakit, and the development of BLU-808. The deal is expected to be immediately accretive to Sanofi’s gross margin and beneficial to its operating income and earnings per share post-2026, reinforcing the financial attractiveness of the acquisition. Given these factors, Archila views the acquisition as a favorable outcome for Blueprint Medicines, supporting his Buy recommendation.
Archila covers the Healthcare sector, focusing on stocks such as Rhythm Pharmaceuticals, Blueprint Medicines, and aTyr Pharma. According to TipRanks, Archila has an average return of 7.3% and a 47.84% success rate on recommended stocks.