H.C. Wainwright Reiterates Buy On BioCryst Pharmaceuticals, Sees 84% Upside


In a research report released yesterday, H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on BioCryst Pharmaceuticals (BCRX) with a $24 price target, which represents a potential upside of 84% from where the stock is currently trading. The report follows the company’s second quarter results, which were released on August 5.

Fein wrote, “Following strong results from the 4-week OPuS-1 study of 4161 in HAE in May, and with 13-week animal toxicity data in hand, the company expects to kick off its registrational OPuS-2 study before year end (12-week treatment; 80-120 patients). Meanwhile, the company continues to expect doubling down on the HAE space by advancing to the clinic at least one nextgeneration once-daily kallikrein inhibitor in 1H15. While all this pending clinical activity reaffirms our faith that shares are now trading at a discount even to the company’s HAE lead-asset valuation , we highlight the following potential interim developments/ communications in 2H14 which could lead to inflection points in BCRX shares: (1) clarity on the FDA’s feedback on the OPuS-2 design, and/ or publication of the study protocol on clinical trial listings; (2) clarity on the conclusion of the bioavailability study evaluating the new soft gel formulation of 4161, as one of the last checkpoints leading to OPuS-2; (3) clarity on the FDA preapproval inspections and batch runs for peramivir manufacture ahead of the December PDUFA and marketing in time for the next flu season (as a reminder, the company’s contract manufacturer is currently working to resolve a 483 warning letter hold); (4) clarity on the advance of the broad spectrum agent 4430 into testing in non-human primate models for Ebola, which would accelerate the asset’s value in light of the recent viral outbreak. Overall, we remain positive on the company’s long-term prospects in HAE”.

With regards to the company’s cash balance the analyst noted, “The company currently has $132.7M in cash and equivalents (vs. $34.1M exiting 1Q14), which management believes may be sufficient to support operations into 2015. For 2014, the company continues to expect net operating cash use in the $35-43M range, and operating expenses in the $48-59M range”.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Fein has a total average return of 4.4% and a 57.1% success rate. Fein has a 13.5% average return when recommending BCRX, and is ranked #1346 out of 3206 analysts.

To read more rating news on BCRX click here.

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