Here’s Why BioCryst Pharmaceuticals, Inc. (BCRX) Shares Popped Today


BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) investors cheer the news that the FDA has approved the supplemental New Drug Application (sNDA) to expand the indication for its intravenous drug RAPIVAB (peramivir injection) to include treatment of acute uncomplicated influenza to pediatric patients 2 years and older who have been symptomatic for no more than two days. The pediatric approval was based on the interim analysis of an ongoing pediatric clinical study.

BioCryst shares reacted to the news, rising nearly 10% to $5.79 in pre-market trading. However, investors should be aware that shares could suffer a “sell on the news” sell-off. This is typically the pattern as shares rise on the rumor and sell on the news.

BioCryst CEO Jon P. Stonehouse commented, “This approval represents the first new influenza antiviral for pediatric use in over 10 years […] RAPIVAB provides another treatment option for pediatric patients with acute, uncomplicated influenza and represents another important milestone for BioCryst.”

“RAPIVAB is a great addition to our armamentarium of antiviral agents to combat influenza,” said John A. Vanchiere, MD, PhD, Chief, Section of Pediatric Infectious Diseases at LSU Health Sciences Center.  “It will be especially helpful for patients who cannot tolerate oral medications.  In addition, the long half-life allows for one-time dosing which will improve compliance.”

On the ratings front, BCRX has been the subject of a number of recent research reports. In a report issued on September 14, RBC analyst Brian Abrahams initiated coverage with a Hold rating on BCRX and a price target of $6.00, which represents a potential upside of 14% from where the stock is currently trading. On September 6, J.P. Morgan’s Jessica Fye upgraded the stock to Buy and has a price target of $9.00.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brian Abrahams and Jessica Fye have a yearly average return of 9.4% and a loss of 5.2% respectively. Abrahams has a success rate of 59% and is ranked #362 out of 4658 analysts, while Fye has a success rate of 42% and is ranked #4115.

Overall, one research analyst has assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $7.67 which is 45.5% above where the stock closed yesterday.

BioCryst Pharmaceuticals, Inc. engages in the research, development, and commercialization of biopharmaceutical products. Its portfolio includes Rapivab, Kallikrein inhibitors, and BCX4430. These drugs intend to treat influenza and hereditary angioedema.