BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) shares slipped yesterday 9% after the drug discovery company reported first-quarter results and update on its clinical progress. The company reported revenues of $4.8 million, down from $6.8 million in 1Q15. The decrease was primarily due to lower collaborative revenue associated with BCX4430 development.
Subsequently, H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on shares of BioCryst, with a price target of $10, which represents a potential upside of 266% from where the stock is currently trading.
Fein wrote, “While we wait for HAE data readouts over the next 10 months, which includes PK data for the solid dose formulation of avoralstat in mid-2016 and APEX-1 data from the once-daily ‘7353 by the end of the year, we take the opportunity to remind investors the company’s fundamentals, that extend beyond Kallikrein inhibition to Biocryst’s core platform technology, a component of Biocryst’s valuation that is currently neglected by the market. If one recognizes the company’s success in inhibiting kallikrein (and we believe the PK limitations associated with OPuS2 failure can be overcome), one must also be willing to recognize that the same platform should be able to generate other hard hits (because structurebased design is rational and not random).
“As the company’s “origin story” and pipeline potential begin to complement its perception as an HAE pure-play in the next 6-12 months, we believe that the company’s valuation in the eyes of investors and/or pharma suitors will start to correct upwards from its current lows, in line with a blended multiple beyond just HAE,” the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Fein has a yearly average return of 2.2% and a 42.0% success rate. Fein has a -11% average return when recommending BCRX, and is ranked #1158 out of 3899 analysts.
Out of the 9 analysts polled by TipRanks, 3 rate BioCryst Pharmaceuticals stock a Buy, 5 rate the stock a Hold and 1 recommends a Sell. With a return potential of 120%, the stock’s consensus target price stands at $6.