BioCryst Stock Price: $14 Target By HC Wainwright

By Amit Chowdhry ● Dec 8, 2020
  • BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) has received a price target increase from $13 to $14 by H.C. Wainwright. These are the details.

BioCryst Pharmaceuticals, Inc. (NASDAQ: BCRX) has received a price target increase from $13 to $14 by H.C. Wainwright. And H.C. Wainwright analyst Andrew Fein reiterated a “Buy” rating on the shares.

In a note to investors, Fein cited BioCryst’s FDA approval of Orladeyo, an oral once-daily prophylactic treatment for attack prevention in hereditary angioedema patients. This will offer the convenience of an oral therapeutic for adults and pediatric patients ages 12 and older.

In related news, it was announced that Royalty Pharma has bought a royalty interest in ORLADEYO and BCX9930 from BioCryst Pharmaceuticals. Royalty Pharma, BioCryst Pharmaceuticals, and Athyrium Capital Management LP had announced transactions totaling $325 million in funding for BioCryst with $250 million available at closing to support the launch of ORLADEYO (berotralstat) in hereditary angioedema (HAE) and the development of its oral Factor D inhibitor, BCX9930.

Royalty Pharma will provide BioCryst with an upfront cash payment of $125 million and will receive royalties of 8.75% on direct annual net sales of ORLADEYO up to $350 million, 2.75% on sales between $350 million and $550 million, no royalty on sales over $550 million, and a tiered percentage of sublicense revenue for ORLADEYO in certain territories. And in addition, Royalty Pharma will receive a 1% royalty on global net sales of BCX9930, if approved.

A fund managed by Athyrium Capital Management is going to provide BioCryst with a $200 million credit facility, of which BioCryst will draw $125 million at closing. And the additional capital will be available in two tranches at BioCryst’s option, upon reaching defined revenue milestones.

BioCryst plans to invest the combined proceeds to support the launch of ORLADEYO in the U.S. and Europe and to advance the development of BCX9930 into clinical trials in multiple complement mediated diseases. And additionally, BioCryst will repay its existing facility with MidCap Financial.

KEY QUOTES ABOUT THE ROYALTY PHARMA DEAL:

“We believe ORLADEYO will be a transformative medicine and we are excited to partner with BioCryst to bring this oral, once-daily medicine to HAE patients. Based on the encouraging proof of concept data in paroxysmal nocturnal hemoglobinuria with BCX9930, we also believe this oral Factor D inhibitor offers substantial opportunities across multiple complement-mediated diseases.”

— Pablo Legorreta, Chief Executive Officer of Royalty Pharma

“With a prolific R&D capability, long IP on their products and significant near-term commercial opportunities, BioCryst represents the ideal profile Athyrium seeks for our investments and we are very excited to contribute to the company’s future success.”

— Hondo Sen, partner at Athyrium Capital Management

“The substantial financial commitment of exceptional long-term partners like Royalty Pharma and Athyrium Capital Management enables BioCryst to fully invest in the launch of ORLADEYO and to accelerate the development of BCX9930 to address an unmet need for patients and deliver value to shareholders. We believe today’s financing reflects the next step in the transformation of BioCryst.”

— Jon Stonehouse, Chief Executive Officer of BioCryst