Piper Sandler confirmed its Overweight rating and $46.00 price target for BridgeBio Pharma (NASDAQ: NASDAQ:BBIO), maintaining a positive outlook on the company's prospects.
The affirmation comes in light of new data regarding the Transthyretin Amyloid Cardiomyopathy (ATTR-CM) market and potential changes in the treatment landscape.
The recent data from the Heart Failure Society of America (HFSA) indicates that the current prevalent patient population for ATTR-CM is approximately 58,000, aligning with existing projections.
Piper Sandler highlighted the possibility of underestimating the growth rate of this patient group. The firm's conservative estimate projects a 2% growth rate over the next five years, but historical trends suggest the possibility of a higher increase.
Should patient numbers rise by 10%, Piper Sandler estimates this could represent an additional $1 billion in annual Total Addressable Market (TAM), which could boost the adoption of emerging therapies like acoramidis. The firm also noted the current combination therapies of stabilizers and silencers may not deliver sufficient clinical benefits to justify their costs.
BridgeBio Pharma's focus on genetic diseases and targeted therapies, including their investigational treatment acoramidis for ATTR-CM, could stand to benefit from an expanding market.
The company's commitment to addressing unmet medical needs in the field of genetic diseases has positioned it as a significant player in the pharmaceutical industry.
In other recent news, BridgeBio Pharma has been making strides in the pharmaceutical field. The firm's drug candidate, acoramidis, has shown promising results in a post-hoc analysis of the Phase 3 ATTRibute-CM study, leading H.C. Wainwright to maintain its Buy rating and a $43.00 price target for BridgeBio.
Additionally, BridgeBio has completed enrollment for its Phase 3 FORTIFY study of BBP-418, a potential treatment for Limb-girdle Muscular Dystrophy Type 2I/R9.
BMO Capital has also maintained a Market Perform rating on BridgeBio shares, despite regulatory challenges surrounding Onpattro, a drug for the treatment of ATTR-CM. Meanwhile, the FDA has granted Breakthrough Therapy Designation to BridgeBio's oral drug candidate infigratinib, which is being developed for children with achondroplasia.
BridgeBio has also been awarded Regenerative Medicine Advanced Therapy designation by the FDA for its gene therapy BBP-812, developed for Canavan disease, following positive results from the CANaspire Phase 1/2 trial. However, BridgeBio has discontinued its BBP-631 gene therapy program, a move projected to save over $50 million in research and development.
Lastly, BridgeBio has formed a joint venture named GondolaBio, backed by a $300 million investment from a consortium of investors, aiming to expedite the development of new therapies.
InvestingPro Insights
To complement Piper Sandler's positive outlook on BridgeBio Pharma (NASDAQ:BBIO), recent data from InvestingPro provides additional context for investors. Despite the company's current unprofitability, with an adjusted P/E ratio of -8.49 for the last twelve months as of Q2 2023, there are signs of potential growth. InvestingPro Tips indicate that analysts anticipate sales growth in the current year, which aligns with the expanding ATTR-CM market discussed in the article.
The company's revenue growth is particularly noteworthy, with a staggering 3761.22% increase in the last twelve months as of Q2 2023. This exceptional growth rate could be attributed to the increasing adoption of BridgeBio's therapies and the expanding patient population for ATTR-CM treatments.
Another InvestingPro Tip reveals that BridgeBio's liquid assets exceed its short-term obligations, suggesting a solid financial position to support its ongoing research and development efforts. This financial stability could be crucial as the company continues to develop acoramidis and other targeted therapies for genetic diseases.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into BridgeBio Pharma's financial health and market position.
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