Is BioCryst Pharmaceuticals A Good Biotech Stock To Own?

Biotech company BioCryst Pharmaceuticals, Inc. (BCRX - Get Rating), which specializes in oral and small molecule medications, is known for its diversified drug pipeline. The stock has gained 153.8% over the past year, and 60.1% year-to-date. The stock hit its $14.24 all-time high on March 22.

Growing investor interest in the bio-pharmaceuticals industry, combined with various technology innovations leading to breakthrough drug trials, have allowed BCRX to generate $19.10 million in revenues in the first quarter, ended March 31. This growth trajectory is expected to continue. Analysts expect the company’s top line to improve 478.5% in the current quarter (ending June 2021), and 3216.7% in the current year.

However, the company’s profitability is expected to remain low; the Street expects its EPS to remain negative until at least 2022.

Laboratory Test Tubes

Image Source: Unsplash

Here’s what we think could influence BCRX’s performance in the near term:

Impressive Growth Prospects

BCRX has successfully commercialized its oral medication ORLADEYO for treating hereditary angioedema. The drug received a positive opinion from the Committee for Medicinal Products for Human Use of the European Medicines on February 26, following which it was approved for commercial use by the European Commission in April. The drug was also approved by the Japanese National Health Insurance system in the same month.

The company’s oral factor D inhibitor, which is designed to treat hemoglobin deficiency, completed successful proof of concept trials in March, and is currently conducting pivotal trials. If successful, the commercialization of the drug should mark a milestone in BCRX’s growth trajectory.

Bleak Financials

But despite having a$2.33 billion market valuation, BCRX generated $32.05 million in revenues over the past year. Also, the company has is yet to generate profits; its trailing-12-month net loss came in at $209.50 million. BCRX is bleeding cash from its operations, as is evident in its  negative $137.27 million trailing-12-month net operating cash flow.

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