Blueprint Medicines (BPMC) Fourth Quarter Loss Widens, Revenue Hits Highest Mark – February 17, 2022

Blueprint Medicines Corporation (BPMC Free Report) suffered an adjusted loss of 99 cents per share (excluding a $260 million one-time payment incurred for the acquisition of Lengo Therapeutics) for the fourth quarter of 2021, above Zacks’ consensus estimate of a loss of 71 cents. The company reported a loss of $1.53 per share in the year-ago quarter.

On a reported basis, the company incurred a loss of $5.40 per share in the fourth quarter of 2021.

However, quarterly revenue of $107 million topped Zacks’ consensus estimate of $104 million. Sales were up significantly from the previous year’s figure of $34.1 million.

Shares of Blueprint Medicines fell 10% on Wednesday after reporting mixed results. The stock is down 25.3% over the past year, compared to the industry’s 39.1% decline.

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Annual results

For 2021, Blueprint Medicines generated total revenue of $180.1 million, compared to $793.7 million recorded in 2020.

For the year 2021, the company reported a loss of $11.01 per share compared to its net income of $5.59 per share recorded in 2020.

Quarter in detail

Since the company transferred responsibility for booking US product sales from Gavreto (pralsetinib) to rock (RHBY Free Report) on July 1, 2021, Blueprint Medicines only records the drug’s profit and loss share in its financial results.

Blueprint Medicines is co-developing Gavreto with Roche, which is approved for the treatment of patients with various types of RET-impaired thyroid cancers and other solid tumors.

The company’s total revenue of $107 million included net product revenue from sales of Ayvakit (avapritinib) and collaboration revenue. It reported net product revenue of $20 million. Revenues from the collaboration amounted to $87 million, mainly generated by the agreements with CStone Pharmaceutical and Roche.

The company reported a collaboration loss share of $4.5 million for Gavreto during the quarter.

Research and development expenditures amounted to $356.9 million, a significant increase over the previous year. Research and development expenses included $260 million, which was incurred to complete the acquisition of Lengo Therapeutics in December 2021. This is the main reason for the year-over-year increase in expenses.

Selling, general and administrative expenses were $54.2 million, up 27.5% year-over-year due to higher costs related to the commercialization of Ayvakit/Ayvakyt (brand name of Ayvakit in Europe).

Blueprint Medicines had cash, cash equivalents and investments worth $1.03 billion as of December 31, 2021, down from less than $1.29 billion as of September 30, 2021.

Orientation 2022

Based on growth in product revenue and collaboration revenue, Blueprint Medicines forecasts total revenue for 2022 to be between $180 million and $200 million. Zacks consensus estimate for the same currently stands at $228.6 million.

Ayvakit’s net revenue is expected to be $115-130 million in 2022.

Pipeline updates

Ayvakit is being evaluated in the PIONEER phase II study for the treatment of non-advanced systemic mastocytosis (“MS”). Data from the study is expected in mid-2022. Pending study results, the company plans to submit a Supplemental New Drug Application for Ayvakit in non-advanced SM to the FDA by the end of 2022.

Ayvakit received FDA approval for the treatment of unresectable or metastatic gastrointestinal stromal tumor harboring a PDGFRA exon 18 mutation, including PDGFRA D842V mutations in adults, in January 2020. The drug also received a label extension from the FDA in June 2021 to treat advanced MS, a rare and disabling condition.

During the fourth quarter earnings call, management said the advanced SM indication has now become the primary product revenue driver for Ayvakit.

In January 2022, the European Medicines Agency’s Committee for Medicinal Products for Human Use issued a positive opinion and recommended approval of Ayvakyt as monotherapy for the treatment of adult patients with advanced MS.

Zacks Ranking and Stocks to Consider

Blueprint Medicines currently carries a Zacks rank #4 (sell).

Top-ranked stocks in the biotech sector include Axsome Therapeutics, Inc. (AXSM free report) and Kaleido Biosciences, Inc. (KLDO Free Report), both sporting a Zacks Rank #2 (Buy) at present. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Axsome Therapeutics’ loss per share estimates have declined 0.5% for 2022 over the past 60 days.

Axsome Therapeutics’ earnings beat estimates in three of the past four quarters and missed the same on the other occasion.

Kaleido Biosciences’ per-share loss estimates have declined 11.3% for 2022 over the past 60 days.

Kaleido Biosciences’ earnings have exceeded estimates in three of the past four quarters and missed the same on the other occasion.

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