The story will be fine with me, because I intend to write it.” – Winston S. Churchill.
Today, we placed the mid-cap biopharma concern BridgeBio Pharma, Inc.NASDAQ:BBIO) back in the spotlight for the first time since May this year. that ITEM concluded that BridgeBio deserved a small holding within a well-diversified biotech portfolio. The stock has more than doubled since then, prompting another review. An updated analysis follows below.
Palo Alto-based BridgeBio Pharma has two approved compounds on the market in TRUSELTIQ and Nulibry, which are licensed and generate little revenue. Most importantly, BridgeBio has a pipeline of more than two dozen candidates within a large pipeline focused on genetic diseases. These range from early discovery to late-stage development assets. Click here for a complete overview of BridgeBio’s pipeline candidates. Shares currently trade around $31.00 a share and has an approximate market capitalization of $5.4 billion.
The company has a very unique business model, which it describes as follows:
Our core and spoke network of partner companies is focused on developing therapies for individual diseases. At the same time, we are building centralized trading capabilities that prioritize efficiency, rigor and scale.”
The main reason for the stock’s big run since we last looked at BridgeBio was trial results around the company’s lead late-stage asset, Acoramidis. In mid-July, the company discovered encouraging Phase 3 results evaluating acoramidis for the treatment of transthyretin amyloid cardiomyopathy, or ATTR-CM.
Management presented further data from this pivotal study at the European Society of Cardiology Congress six weeks later. BridgeBio plans to submit a marketing application seeking approval for acoramidis to treat ATTR-CM in the US by the end of this year. The company will do the same for global approvals in 2024.
BridgeBio’s near to mid-term future will be driven primarily by the approval and expansion of acoramidis to treat ATTR-CM. Management gave a good overview of its progress with a host of other developing components within its diverse pipeline within Q3 earnings. Press release.
Analyst Comment and Balance Sheet:
The analyst community is very optimistic about BridgeBio’s prospects. Since the third trimester results were issued on November 2, seven analyst firms, including Goldman Sachs and JPMorgan, have reissued Buy/Outperform ratings on the stock. Price targets offered range from $35 to $60 per share.
In late October, Cantor Fitzgerald initiated coverage on BridgeBio with an overweight rating and $50 price target. Here is COMMENTARY from analyst at Cantor, who called BBIO a “compelling pick” in the biotech space:
We expect BridgeBio to generate more than $5 billion in peak sales in 2030, primarily from its investigational therapy acoramidis, which has already generated promising data against cardiomyopathy in ATTR amyloidosis (ATTR-CM). Acoramidis could generate over $1 billion in peak sales, although the company will have a hard time partaking of Pfizer (PFE)which markets a rival amyloidosis therapy called Tafamidis.”
A ITEM in Searching Alpha went into how acoramidis could stack up against Tafamidis. It should be noted that ATTR-CM is a large and growing market.
Approximately 15% of shares outstanding are currently short. Several insiders have been frequent sellers of shares in 2023. So far in the fourth quarter, they have collectively sold nearly $2.4 million worth of equity. In early November, the company deposited a prospectus regarding the proposed resale of just over nine million shares from the stockholder sale.
The company ended the third quarter with just over $520 million in cash and marketable securities BALANCE. Of which, about 316 million dollars were raised through PIPE funding at the end of September. The company posted a net loss of just over $480 million in the first nine months of 2023, as well as just under $80 million in stock-based compensation expense. BridgeBio also listed just over $1.7 billion in long-term debt in the third quarter 10-P. Of which, $543 million is from notes due 2027 and $736 million is from notes due 2029.
When we last took a look at BridgeBio Pharma, the stock was trading at just under $14.00 per share. The stock has more than doubled since then, and a lot of good news appears to have been issued in stocks above $30 a share. Additionally, insiders of BridgeBio Pharma, Inc. they seem to be taking more money off the table, and the company’s balance sheet has a good debt barrier.
Therefore, I’m letting discretion be the better part of valor, and I’ll take the profits on half my position in my little one.”article of the hour” holding in BBIO. This way I have a “free ride” to my remaining 50% stake in BBIO, which could advance significantly if the company reaches anywhere near Cantor’s $5 billion in 2030 sales forecasts.
A man’s first duty is to think for himself”― Jose Marti.