In an Oct. 3 research note, analyst Andrew Fein reported that H.C. Wainwright & Co. initiated coverage on Blueprint Medicines Corp. (BPMC:NASDAQ) with a Buy rating and a $100 per share price target. In comparison, its current share price is around $72.26.
One major reason for the assumption of coverage is that Blueprint, Fein noted, is on "the verge of transforming into a full-fledged commercial company." U.S. Food and Drug Administration (FDA) approval of the company's avapritinib in fourthline and PDGFRA-E18m gastrointestinal stromal tumors (GIST) is likely in Q1/20.
Also during that quarter, the biopharmaceutical entity plans to submit to the FDA new drug applications for avapritinib for treatment of advanced systemic mastocytosis and pralsetinib (BLU-667) for secondline RET fusion nonsmall cell lung cancer.
The analyst pointed out that H.C. Wainwright and key opinion leaders view the market opportunities for both avapritinib and pralsetinib to be "underappreciated." He added, "As key opinion leaders believe genetic testing in earlier lines of GIST should be the main driver for commercial uptake, we applaud Blueprint's solid strides in promoting genetic testing and physician education as part of an integrated commercial strategy."
Also attractive about Blueprint, it "is building a kinase medicine franchise upon a robust pipeline and platform," which "deserve more attention from the Street," indicated Fein. As such, the company should be able to "command a larger premium in a mergers and acquisitions scenario."
Blueprint has more than 10,000 prescreened molecules from over 100 scaffolds. These molecules provide a broad scope of human kinome coverage and can be high-quality launching pads for compound optimization.
Fein pointed out that Blueprint is advancing additional clinical programs, such as fisogatinib (BLU-554) for advanced hepatocellular carcinoma and BLU-782 for fibrodysplasia ossificans progressive. The biopharma's earlier stage assets also should "offer optionality and business development opportunities in the near to midterm."
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Disclosures from H.C. Wainwright & Co., Blueprint Medicines Corp., Initiating Coverage, October 3, 2019
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement of securities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of its affiliates or subsidiaries within the past 12 months.
I, Andrew S. Fein, Alicia Yin, Ph.D., Li Wang Watsek, and Matthew Caufield, certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst's household has a financial interest in the securities of Blueprint Medicines Corporation, Deciphera Pharmaceuticals, Inc. and Turning Point Therapeutics, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of September 30, 2019 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Blueprint Medicines Corporation, Deciphera Pharmaceuticals, Inc. and Turning Point Therapeutics, Inc.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from Blueprint Medicines Corporation, Deciphera Pharmaceuticals, Inc. and Turning Point Therapeutics, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Blueprint Medicines Corporation, Deciphera Pharmaceuticals, Inc. and Turning Point Therapeutics, Inc. as of the date of this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.
