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BridgeBio (BBIO) to Report Q4 Earnings: What's in the Cards?

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We expect investors to focus on updates on BridgeBio Pharma’s BBIO progress of its pipeline candidates when it reports fourth-quarter 2021 results.

The company’s earnings missed expectations in three of the trailing four quarters while beating the mark on one occasion, with the average negative surprise being 10.1%. In the last reported quarter, BridgeBio delivered a negative earnings surprise of 16.5%.

BridgeBio Pharma, Inc. Price and EPS Surprise

BridgeBio Pharma, Inc. Price and EPS Surprise
BridgeBio Pharma, Inc. Price and EPS Surprise

BridgeBio Pharma, Inc. price-eps-surprise | BridgeBio Pharma, Inc. Quote

In the trailing 12 months, shares of BridgeBio Pharma have plunged 86.2% compared with the industry’s 35.7% decline.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Let’s see how things have shaped up for the quarter to be reported.

Factors to Consider

BridgeBio has two approved products in its portfolio, Nulibry (for molybdenum cofactor deficiency Type A) and Truseltiq (for bile duct cancer), which were approved last year. The company is yet to generate significant revenues from the sale of these products.

Currently, BBIO has more than 30 programs in its pipeline and multiple ongoing clinical studies. Most of these pipeline programs are a result of its collaboration with academic institutions and industry partners. In fact, more than two-third of the company’s pipeline programs are in collaboration with leading academic institutions like Columbia University, University of Texas and Standford University.

BBIO’s pipeline currently consists of four core value drivers — acoramidis for the treatment of symptomatic transthyretin (TTR) amyloid cardiomyopathy (ATTR-CM), encaleret for autosomal dominant hypocalcemia type 1 (ADH1), low-dosedinfigratinib for achondroplasia and BBP-631 for congenital adrenal hyperplasia (CAH).

In December 2021, BridgeBio reported that part A of a two-part phase III ATTRibute-CM study evaluating acoramidis in ATTR-CM failed to achieve its primary endpoint. Consequently, the same has caused a delay in the regulatory filing for acoramidis. Meanwhile, BBIO will continue to evaluate the candidate in Part B of the study for 30 months, including the 12 months of part A of the study. Top-line results from the Part B portion of the study are expected next year.

A phase IIb study is evaluating encaleret as a potential treatment for ADH1, a rare form of hypoparathyroidism caused by mutations in the CASR gene. Updated data from the study announced in October 2021 demonstrated that treatment with encaleret normalized mean blood calcium levels and 24-hour urine calcium excretion within five days. BridgeBio plans to initiate a phase III study to evaluate the candidate for ADH1 later this year.

A mid-stage study is evaluating infigratinib in patients with achondroplasia, a form of dwarfism. Initial data from the study is expected in first-half 2022.

Last month, BridgeBio announced that it has dosed the first patient in the phase I/II ADventure study, which is evaluating gene therapy candidate BBP-631 as a potential treatment for CAH, a group of genetic disorders that affect the adrenal glands.

In addition, the company is also evaluating several other pipeline candidates. A phase II study is evaluating BBP-418 for the potential treatment of limb-girdle muscular dystrophy type 2i, while a phase I/II study is evaluating its gene-therapy BBP-812 for Canavan disease. Data from both the studies are expected later this year.

Last month, BridgeBio announced that it had entered into a non-exclusive clinical collaboration with Amgen AMGN to evaluate the combination of its investigational SHP2 inhibitor BBP-398 with Amgen’s KRAS G12C inhibitor Lumakras in patients with KRAS G12C-mutated advanced solid tumors. Per the agreement terms, BridgeBio will be responsible for sponsoring the study, while Amgen will be in charge of the worldwide supply of Lumakras.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for BridgeBio this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: The company has an Earnings ESP of -12.73% as the Most Accurate Estimate of a loss of 93 cents per share is wider than the Zacks Consensus Estimate of a loss of 83 cents.

Zacks Rank: BridgeBio Pharma currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks you may want to consider as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Evelo Biosciences EVLO has an Earnings ESP of +12.79% and a Zacks Rank #3.

Evelo Biosciences’ loss per share estimates for 2022 have narrowed from $2.19 to $2.12 in the past 30 days. Evelo Biosciences missed earnings estimates in each of the last four quarters, delivering a negative surprise of 13.2%, on average.

Moderna MRNA has an Earnings ESP of +3.28% and a Zacks Rank #3.

In the past 30 days, earnings per share estimates of Moderna for 2022 have increased from $25.92 to $26.98 in the past 30 days. In fact, Moderna topped earnings estimates in two of the last four quarters and missed the mark on the other two occasions, delivering a negative surprise of 35.8%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Amgen Inc. (AMGN) : Free Stock Analysis Report

Moderna, Inc. (MRNA) : Free Stock Analysis Report

Evelo Biosciences, Inc. (EVLO) : Free Stock Analysis Report

BridgeBio Pharma, Inc. (BBIO) : Free Stock Analysis Report

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