Blueprint Medicines price target raised to $120 from $103 at SVB Leerink
SVB Leerink analyst Andrew Berens raised his price target for Blueprint Medicines to $120 from $103 and maintained an Outperform rating after the FDA approved Ayvakit for the treatment of patients with gastrointestinal stromal tumors harboring PDGFRalpha Exon 18 mutation. In conjunction with the approval, the company announced its commercial strategy for the drug, including a significantly higher price point for the drug, at $32k/month wholesale acquisition cost, over 2x what we had initially forecasted. Berens tells investors in a research note that he believes this premium price point is justifiable in PDGFRalpha GIST, where the drug has superlative efficacy and no competition, and the FDA's decision to delay action on the non-PDGFRalpha GIST part of the application, where the data are less compelling, may have counter-intuitively worked to the company's advantage. He believes other companies with targeted oncology drugs in development may adopt similar pricing strategies, which could spark a rally as investors contemplate these new valuations.