BioCryst Pharmaceuticals (BCRX) Stock: Falling Hard After Positive Study Results

BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) is having an overwhelmingly rough start in the premarket hours this morning, leaving many wondering why. The company released what it said was positive clinical data from a Phase 3 trial. However, reading between the lines shows us that things aren’t always what they seem. Today, we’ll talk about:

  • The data and why the stock is falling as a result;
  • what we’re seeing from BCRX stock; and
  • what we’ll be watching for ahead.

BCRX Announces Phase 3 Data

As mentioned above, BioCryst Pharmaceuticals released what seemed to be positive clinical data this morning. The announcement came by way of press release in the premarket hours.

In the release, the company said that its Phase 3 APeX-2 trial of once-daily, oral BCX7353 for the prevention of hereditary angiodema (HAE) attachs, achieved its primary endpoint for both dose levels. The higher dose level, 150 mg, reduced the attack rate in HAE patients by 44% compared to placebo.

In a statement, Jon Stonehouse, CEO at BCRX, had the following to offer:

HAE patients around the world desperately want access to a cost-effective, convenient, oral therapy to manage their disease. Given the profile of the 150 mg dose of BCX7353 in APeX-2, with half of patients experiencing at least a 70 percent reduction in attack rate, we have a new oral therapy that patients will want to try.

With successful results from APeX-2, BioCryst is committed to making it easy for HAE patients around the world to access this potentially life-changing oral therapy, and we believe BCX7353 is positioned to become a front-line therapy option.

Why Is The Stock Falling On Positive News?

The truth of the matter is that the news isn’t quite as positive as it appears. At the end of the day, there are treatment options on the market for HAE attacks already. The appeal for the BCRX drug is the fact that it is taken orally, rather than injected.

While the treatment did show a reduction in attacks from baseline, the effect of the drug was pretty minimal when compared to already approved, injectable options. As a result, it’s likely that even if the drug were to be approved, it would have a hard time finding a way to compete in a market where there are superior options readily available.

At the end of the day, investors are concerned that efficacy data simply wasn’t strong enough to make a case for a strong commercial launch of the drug upon approval.

What We’re Seeing From The Stock 

As investors, one of the first lessons that we learn is that the news leads to moves in the market. When it comes to BioCryst Pharmaceuticals, the news seemed positive, but proved to be negative.

After all, taking a pill is easier than injecting a treatment. However, if the injection leads to stronger efficacy data, well, patients may be more likely to take the harder route. As a result, the potential value of the treatment has been slashed with the data that was released today.

As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:22), BCRX is trading at $4.05 per share after a loss of $3.34 per share or 45.20% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on BCRX. In particualr, we’re interested in following the story surrounding the coming NDA and how the company commercializes the treatment if it is approved. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!

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