BridgeBio Pharma Achieves Breakthrough for Heart-Disease Drug, BBIO Stock Skyrockets
BridgeBio Pharma (BBIO) experienced a significant boost in its stock after achieving a “best-case scenario” for its heart-disease drug. The breakthrough not only propelled BBIO stock into a breakout, but also led to a rise in shares of rival company Alnylam Pharmaceuticals (ALNY).
The drug, called acoramidis, was tested on patients with transthyretin amyloid cardiomyopathy, a leading cause of heart failure characterized by the buildup of abnormal protein on the heart. Acoramidis aims to stabilize the mutated protein, transthyretin, at the core of the disease.
After a 30-month trial period, it was found that 81% of acoramidis patients were still alive compared to only 74% of those who received a placebo. Additionally, acoramidis led to a 50% decrease in the risk of hospitalization for cardiovascular-related issues. Patients who received the treatment also showed a significant improvement in their ability to walk for six minutes, a key indicator of disease severity.
Luca Issi, an analyst from RBC Capital Markets, stated that these results provide confirmation of the benefits of stabilizing transthyretin in this disease. He believes this development will have positive implications for other companies in the same field.
As a result of this breakthrough, BBIO stock surged by 75.9% to close at 32.04, while shares of Alnylam Pharmaceuticals saw a 2.9% increase to 202.83. However, Ionis Pharmaceuticals, which is also working on treating the same disease, experienced a slight dip in its stock to 42.20.
Looking ahead, Pfizer already offers a drug, Vyndamax, for the treatment of transthyretin amyloid cardiomyopathy. With Vyndamax generating $2.45 billion in sales last year, Mizuho Securities analyst Salim Syed believes that BridgeBio could potentially earn $2 billion in sales from this market. Syed also suggests that the focus of BridgeBio’s story should shift to a commercial and/or platform perspective, as revenue is anticipated to be achievable within the next 12 to 18 months.
BBIO stock boasts a strong IBD Digital Relative Strength Rating of 97, placing it in the top 3% of all stocks in terms of 12-month performance. MarketSmith.com reports that BBIO stock broke out of a consolidation phase, with a buy point at 19.95.
With this groundbreaking development, BridgeBio Pharma is poised for significant growth in the heart-disease drug market, solidifying its position as a leading player in the industry.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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