RESEARCH TRIANGLE PARK, N.C. - BioCryst (NASDAQ:BCRX) Pharmaceuticals, Inc. (NASDAQ:BCRX) has been awarded a contract by the U.S. Department of Health and Human Services (HHS) for the procurement of its influenza treatment, RAPIVAB® (peramivir injection). The contract, valued at up to $69 million, is for the supply of up to 95,625 doses over a five-year period to the Center for the Strategic National Stockpile (SNS).
The SNS is the nation's repository of pharmaceuticals and medical supplies for use in public health emergencies. The contract includes a base ordering period of 12 months with four optional 12-month extensions. The HHS has already exercised the first option, committing $13.9 million for 19,125 doses to be supplied by September 29, 2025.
RAPIVAB, which is administered via an intravenous infusion, is approved for the treatment of acute uncomplicated influenza in patients six months and older who have been symptomatic for no more than two days. The drug was an integral part of the U.S. government's response to the 2009 H1N1 influenza pandemic and has continued to play a role in influenza preparedness.
This new contract follows a previous five-year agreement completed in 2022, where BioCryst supplied the SNS with up to 50,000 doses of RAPIVAB under a $34.7 million contract. Dr. Helen Thackray, chief research and development officer at BioCryst, expressed the company's commitment to ensuring the availability of RAPIVAB for potential serious influenza outbreaks.
BioCryst Pharmaceuticals focuses on developing treatments for rare diseases through structure-guided drug design. In addition to RAPIVAB, the company has commercialized ORLADEYO® (berotralstat) and is advancing a pipeline of other small-molecule and protein therapeutics.
The information in this article is based on a press release statement from BioCryst Pharmaceuticals, Inc. The forward-looking statements in the press release are subject to various risks and uncertainties, and actual results may differ materially. Factors that could affect the company's performance include the HHS's actual purchase quantities and the company's reliance on third-party manufacturers for the production of RAPIVAB.
In other recent news, BioCryst Pharmaceuticals has seen a surge in demand for its hereditary angioedema treatment, ORLADEYO, leading to an upgraded revenue forecast for the year, now expected to fall between $420 million and $435 million. In parallel, the company has finalized a deal with the pan-Canadian Pharmaceutical Alliance to incorporate ORLADEYO into public formularies, expanding patient access across Canada. However, BioCryst has also announced the discontinuation of the BCX10013 program due to insufficient drug activity.
The company further bolstered its team with the appointment of Dr. Donald S. Fong as the new chief medical officer. BioCryst also plans to file for pediatric use of ORLADEYO's oral-granule formulation next year. The firm is targeting a 20% market share for ORLADEYO and expects to reach 85% paid treatment in the US by 2029.
These developments come amidst strong sales and patient retention of ORLADEYO in over 20 countries, indicating a positive trajectory for BioCryst. Despite the discontinuation of the BCX10013 program, the company's focus on profitability and pipeline development suggests a commitment to growth.
InvestingPro Insights
BioCryst Pharmaceuticals' recent contract with the U.S. Department of Health and Human Services aligns with the company's strong revenue growth trajectory. According to InvestingPro data, BioCryst's revenue grew by 24.65% over the last twelve months as of Q2 2024, with an even more impressive quarterly revenue growth of 32.54% in Q2 2024. This new $69 million contract for RAPIVAB is likely to further bolster the company's financial performance.
Despite the positive news, investors should note that BioCryst is not currently profitable, with a negative operating income of $55.39 million over the last twelve months. This is reflected in the company's price-to-earnings ratio of -11.13, indicating that the company is still in a growth phase and reinvesting heavily in its operations.
InvestingPro Tips highlight that BioCryst's stock price movements are quite volatile, which is typical for biotech companies with promising pipelines but uncertain profitability. However, the company has shown strong returns over the last three months and six months, with price total returns of 23.3% and 50% respectively. This recent performance may be indicative of growing investor confidence in BioCryst's product portfolio and future prospects.
For those interested in a deeper analysis, InvestingPro offers 8 additional tips for BioCryst Pharmaceuticals, providing a more comprehensive view of the company's financial health and market position.
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