Taking a Look at $BPMC:
This is an updated look at Blueprint Medicines.
This is an updated look at Blueprint Medicines.
1/ Management:
Blueprint is one of my oldest holdings. They have an outstanding CEO with Jeff Albers. Recently, they announced the CEO transition to Kate Haviland. Jeff will move to the Chairman role.
Blueprint is one of my oldest holdings. They have an outstanding CEO with Jeff Albers. Recently, they announced the CEO transition to Kate Haviland. Jeff will move to the Chairman role.
2/ Any time there is a CEO transition, there is reason for concern. I have been in companies before that were very successful under one CEO and then it was all down hill after the CEO changed.
3/ All I can say is Kate would have been my first pick for CEO. I have heard her present over the years at conferences, and I think she will do a great job.
4/ Science:
Blueprint has been focused over the years on intracellular signaling pathways. This has been one of my top themes for many years. They target the many pathways that mutate in cancer. This has been a very powerful space in targeted oncology.
Blueprint has been focused over the years on intracellular signaling pathways. This has been one of my top themes for many years. They target the many pathways that mutate in cancer. This has been a very powerful space in targeted oncology.
5/ They have been focused on PDGFR and KIT with their first drug Ayvakit. This is approved for a rare mutation of D842V GIST. Its is also approved in advance SM with a D816V mutation. These are super small indications an sales are already maturing in these 2 indications.
6/ The next big indication will be indolent SM which is about 20x bigger than advanced SM market. That is currently in phase 2 trials with a data read out around mid year. They have several early development programs going on around EFGR, CDK2 and the follow on drug for KIT.
7/ Potential:
Their commercial programs are getting to the level of maturity around $200 million in revenues. The next big driver of potential will be indolent SM which could do up to $1.5 billion in sales and expand further with BLU-263 into all Mast Cell disorders.
Their commercial programs are getting to the level of maturity around $200 million in revenues. The next big driver of potential will be indolent SM which could do up to $1.5 billion in sales and expand further with BLU-263 into all Mast Cell disorders.
8/ They have 3 early EFGR drugs in development with BLU-701 and BLU-945 which target Exon 21 mutations. They also have BLU-451 which targets Exon 20 mutations.
9/ These drugs could address a very large market as Osimertinib does over $5 billion annually in sales. Their last drug in development is for CDK2 mutant cancers.
10/ I am not sure yet what kind of market this would be. I think Blueprint is very small right now, but has multiple programs that could take them to $3 billion or more in long term sales.
11/ Value:
Blueprint seems to be a complete steal on valuation at $3.38 billion market cap. They have just over $1 billion in cash. They did $180 million in sales in 2021 and burned about $400 million when you back out the cost of buying Lengo.
Blueprint seems to be a complete steal on valuation at $3.38 billion market cap. They have just over $1 billion in cash. They did $180 million in sales in 2021 and burned about $400 million when you back out the cost of buying Lengo.
12/ That gives them a good 2 years worth of cash. I expect that costs will continue to go up as they develop all these new programs. The big risk here lies in the success of their early programs and the new management.
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