Biotech Stock Roundup: BMY's Q3 Results, PTCT Up on Deal, BEAM's Restructuring News
It was a busy week for the biotech sector as the third-quarter earnings kicked in. Bristol Myers BMY reported results for the third quarter. Pipeline and regulatory updates from quite a few other biotechs were in focus.
Recap of the Week’s Most Important Stories:
BMY’S Q3 Earnings: Bristol Myers reported better-than-expected results for the third quarter of 2023 and updated its annual outlook for earnings. The company reported adjusted earnings per share of $2, which beat the Zacks Consensus Estimate of $1.76. In the year-ago quarter, BMY posted adjusted earnings per share of $1.99.
Total revenues of $10.97 billion surpassed the Zacks Consensus Estimate of $10.94 billion. However, revenues decreased 2% from the year-ago period due to generic competition for the multiple myeloma (MM) drug Revlimid, partially offset by in-line products (primarily Opdivo) and new product portfolios (primarily Opdualag, Reblozyl and Zeposia).
However, BMY stated that it expects its current new-product portfolio to generate $10 billion in revenues by 2026. The company had earlier predicted the same by 2025. Shares are trading down post the earnings release as investors are disappointed with the delay in the time frame by a year.
PTCT Partners Royalty Pharma: PTC Therapeutics, Inc. PTCT announced an agreement with Royalty Pharma plc. to monetize up to $1.5 billion of royalties from spinal muscular atrophy (SMA) drug Evrysdi. Per the terms of the agreement, Royalty Pharma acquired additional royalties on Evrysdi for an upfront payment of $1.0 billion. PTC can also sell its retained royalties on Evrysdi for up to $500 million. Royalty Pharma can acquire half of such retained royalties for up to $250 million later. Shares were up on the agreement news.
Both companies entered into an agreement in 2020 to monetize approximately 43% of the Evrysdi royalty stream for $650 million. Per the new agreement, PTCT will maintain ownership of roughly 19% of the Evrysdi royalty stream pending any exercise of future options by PTCT or Royalty Pharma. PTC Therapeutics plans to use funds from the new agreement to retire all outstanding debt obligations with Blackstone Life Sciences and to fund planned operations.
BEAM Down on Restructuring Plan: Beam Therapeutics Inc. BEAM announced a restructuring plan to streamline its business operations. BEAM plans to reduce its current headcount by 20%, which is likely to be completed later in the ongoing quarter. Owing to this, the company expects to incur a one-time cash expenditure related to severance of around $6.6 million in the fourth quarter of 2023. Shares of the company were down on the news.
These restructuring and reprioritization efforts are expected to reduce the company’s operating expenses and extend the cash runway into 2026. As part of this portfolio reprioritization, Beam Therapeutics will prioritize the development of its ex vivo and in vivo sickle cell disease programs, including BEAM-101, its Engineered Stem Cell Antibody Paired Evasion non-genotoxic conditioning strategy, and in vivo delivery to hematopoietic stem cells (HSCs).
It will also focus on the development of its in vivo base editor BEAM-302 for the treatment of alpha-1 antitrypsin deficiency (AATD). The company will initiate a trial on BEAM-301 to treat glycogen storage disease 1a (GSD1a) at a select number of sites in the United States.
The company is also exploring various partnership opportunities to continue developing its ex vivo CAR-T programs like BEAM-201 and other allogeneic cell therapies.
Bristol-Myers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BioMarin’s Drug’s Label Expansion: BioMarin Pharmaceutical Inc. BMRN announced that the FDA has approved the label expansion of achondroplasia drug Voxzogo. The regulatory body approved the company’s supplemental New Drug Application (sNDA) seeking approval of the drug to increase linear growth in pediatric patients with achondroplasia with open epiphyses (growth plates).
This indication is approved under accelerated approval based on an improvement in annualized growth velocity. Voxzogo was earlier approved for children five years of age and older. This expanded indication now includes children of all ages with open growth plates.
BioMarin conducted a randomized, double-blind, placebo-controlled phase II study evaluating the safety and efficacy of Voxzogo in children aged five and under. The results of this study, along with a phase II study in pediatric patients aged five years and older (Study 111-301), proved the safety and effectiveness of Voxzogo in pediatric patients of all ages for the improvement in linear growth in children with achondroplasia with open epiphyses.
Performance
The Nasdaq Biotechnology Index has lost 3.57% in the past five trading sessions. Among the biotech giants, Moderna has lost 10.75% during the period. Over the past six months, shares of Moderna have plunged 43.10%. (See the last biotech stock roundup here: Biotech Stock Roundup: ALDX, EVLO Down on Setback, SRRK Offers Updates & More).
Image Source: Zacks Investment Research
What's Next in Biotech?
Stay tuned for more pipeline and earnings updates.
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Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report
BioMarin Pharmaceutical Inc. (BMRN) : Free Stock Analysis Report
Beam Therapeutics Inc. (BEAM) : Free Stock Analysis Report
PTC Therapeutics, Inc. (PTCT) : Free Stock Analysis Report
