Following an over 15% decline in the previous session, BioCryst Pharmaceuticals ( NASDAQ: BCRX ) gained ~13% on Wednesday as Needham upgraded the biotech, noting that its earnings-led selloff yesterday was an overreaction.
The analyst Serge Belanger attributes the selloff to an update BioCryst ( BCRX ) disclosed with Q4 earnings regarding its once-daily oral factor D inhibitor BCX10013 which generated early Phase 1 data in January.
As management notes, the analyst argues that a dose-related observation in an ongoing non-clinical trial will delay its advancement into a proof-of-concept trial in paroxysmal nocturnal hemoglobinuria (PNH) which was previously set for a mid-2023 start.
“We believe the selloff associated with the non-clinical tox finding was overdone given that BCX10013 had yet to demonstrate proof-of-concept in any indication,” Belanger wrote, upgrading the stock to Buy from Hold.
With a $14 per share target on the stock, Belanger notes that BioCryst’s ( BCRX ) 25% decline this year has brought its shares to a level that has yet to reflect its growth trajectory and sales for its hereditary angioedema (HA) therapy Orladeyo.
As opposed to management’s $1B forecast, the analyst projects $900M peak sales for Orladeyo, noting that a rival oral HAE prophylactic is at least 5 – 7 years away.
Read: Seeking Alpha contributor Biotech Fan says Orladeyo “is on track to achieve blockbuster status in a few years.”
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BioCryst adds 13% to rebound as Needham upgrades; says selloff overdone