BridgeBio Pharma Lands $310M Deal: Could Shares Soar?

BridgeBio Pharma, a prominent player in the biotech industry, has secured a significant deal worth $310 million with Bayer for the commercial rights to its leading asset, acoramidis, in Europe. This experimental treatment targets transthyretin amyloid cardiomyopathy, a hereditary condition characterized by abnormal protein buildup in the heart. Pending approvals from regulators in the U.S. and Europe, BridgeBio anticipates a decision from the FDA by November 29, with potential European approval expected in 2025. The deal with Bayer encompasses tiered royalty payments on sales, starting in the low-30% range, along with upfront funding, near-term sales milestone payments, and additional undisclosed sales milestone payments.

BridgeBio’s acoramidis, if approved, will rival Pfizer’s Vyndaqel, which saw a 36% increase in sales last year to $3.32 billion. Analysts forecast Vyndaqel to generate $4.03 billion in sales this year. While acoramidis sales are projected to begin modestly this year at $18.7 million, they are expected to reach blockbuster status by 2029 with $1.29 billion in sales.

Clinical trials have shown promising results for acoramidis, with 81% of patients surviving after 30 months compared to 74% of placebo recipients. Additionally, acoramidis demonstrated a 50% reduction in the risk of cardiovascular-related hospitalizations and significant improvement in patients’ ability to walk for six minutes, indicating a reduction in disease severity.

Currently, BridgeBio stock boasts a robust Relative Strength Rating of 97, placing it in the top 3% of all stocks in terms of 12-month performance, indicating potential for further growth and development.