BCRX Stock: BioCryst Pharmaceutcials Announces ORLADEYO Launch

BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) is headed up in the market this morning, and for good reason. The company announced the availability of ORLADEYO in the United States. Here’s what’s going on:

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BioCryst Pharmaceuticals Announces the Availability of ORLADEYO

In the press release, BioCryst Pharmaceuticals announced that its oral, once-daily ORLADEYO (berotralstat), is now available for shipment to patients in the United States. Patients must have a prescription to access the drug. 

On December 3, 2020, the United States Food and Drug Administration approved ORLADEYO as a treatment option to prevent attacks of hereditary angioedema, also known as HAE, in adult and pediatric patients 12 years old or older.  

BCRX explained that its exclusive specialty pharmacy provider for ORLADEYO, Optime Care, Inc., has begun shipping the drug. 

Management Commentary

In a statement, Douglas R. Lotz, M.D., Senior Partner at Family Allergy & Asthma, had the following to offer:

Access to medicine is critical to HAE patients. Many patients have been waiting for an oral option and I am very pleased that they have support from BioCryst to access ORLADEYO so quickly following FDA approval.

The above statement was followed up by Charlie Grayer, Chief Commercial Officer at BCRX. Here’s what he had to offer:

Our goal is to provide a best-in-class partnership that enables an individualized approach for physicians and their patients. Through our dedicated care coordinators, we offer a single point of contact to assist patients and healthcare providers throughout the treatment journey. From the transition to ORLADEYO, coordination of deliveries, to ongoing patient support, EMPOWER puts the HAE patient at the center.

Why Investors Are Excited

This is exciting news, however, the declines are being tapered down. Nonetheless, there’s good reason to be excited about BioCryst Pharmaceuticals. With the launch of ORLADEYO, the company has the opportunity to tap into a strong revenue stream. 

Keep in mind, the hereditary angioedema market is a massive one, with experts expecting the market to grow to more than $6.5 billion by the year 2025. As such, the company’s opportunity to tap into this massive market is overwhelmingly exciting news. 

Analyst Opinions of BCRX Stock

A quick search on TipRanks will show you that analysts love BCRX stock. According to the platform, there are currently eight analysts weighing in on the stock, with an average rating of a Buy. In fact, of the eight analysts weighing in on BCRX, six rate it a buy and two rate it a hold. No analysts currently rate the stock a sell. 

In terms of price target, we see more good news. The low price target on the stock is $7 with a high of $14. The average price target works out to $9.71, suggesting potential for gains of well over 10% ahead. 

Keep in mind, it’s never a good idea to blindly follow the opinions of analysts. After all, many of them work for companies that own the stock, creating a conflict of interest. Nonetheless, it is a good idea to use the opinions of analysts to validate your own after doing your own research. 

Risks to Consider Before Buying BCRX Stock 

There’s no such thing as an investment that comes without risk. Any time you purchase a stock or any other financial product, there is a chance that you’ll lose money. In terms of BioCryst Pharmaceuticals stock, here are the most significant risks to consider:

  • Commercial Failure. While the FDA has approved ORLADEYO, that’s only a piece of the work that needs to be done to turn a profit. Now, it’s up to the company to successfully commercialize the drug. Should sales fall short of expectations, significant declines may be the result. 
  • Clinical Risk. While ORLADEYO has been approved, it is not the only asset at BCRX. Moreover, other assets in the pipeline are considered to be more valuable if approved. However, if there’s a clinical failure, significant declines could be the result. 

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Final Thoughts

There’s a good reason for the gains in BioCryst Pharmaceuticals’ stock. Ultimately, the company is entering a massive market, offering up the opportunity to significantly generate revenue. Moreover, due to a recent fund raise, the company has plenty of money in the bank to properly commercialize the drug and continue development of other products in its pipeline

While BCRX stock does come with risk, no investment is without risk. All in all, this is a stock that’s well worth watching!