Blueprint Medicines: Buy The Secondary
- Shares have risen well over 200% since my initial write-up on this “nascent leader in targeted oncology”.
- Results in GIST and SM have been quite impressive.
- After the recent secondary, the company has significantly extended its operational runway.
- The initiation of its global pivotal program in third-line GIST along with further updates from its expanded phase 1 program should drive upside in 2018.
- I look forward to further updates from BLU-285 in SM as well as preliminary data for its RET program in the first half of 2018.
Shares of Blueprint Medicines (BPMC) have risen by well over 200% since last December when I called the company “nascent leader in targeted oncology”. The stock has doubled since my March update piece titled “The Uptrend Continues in 2017”.
At the time, I pointed out that even though the company might turn some investors away with its market capitalization then nearing $1 billion and lead assets only in phase 1 studies, this was a situation where remarkable data (although early) backed up the valuation.
I mentioned the company had credibility-building partnerships with Roche (OTCQX:RHHBY) and Alexion (NASDAQ:ALXN). First, I focused on impressive early results for BLU-285 in patients with advanced gastrointestinal stromal tumors (GIST), with 14 of 15 patients with PDGFRα-driven GIST experienced tumor reduction (six of them achieving partial response or PR). In patients with KIT expression, 5 of 13 achieved PR.
While data for BLU-285 in systemic mastocytosis (SM) was intriguing, I advised that we’d need more clarification as dose escalation continues before drawing conclusion. I pointed out that several institutional investors worth following had large positions (Deerfield, BVF, and FMR) and finished by stating that maturing data in both GIST and SM along with progression of other candidates would drive further upside.