Blueprint Medicines Corporation, a precision therapy company, develops medicines for genomically defined cancers and blood disorders in the United States and internationally. The company has a diverse pipeline of products in various stages of development, including AYVAKIT for the treatment of systemic mastocytosis and gastrointestinal stromal tumors, GAVRETO for the treatment of non-small cell lung cancer, and several other potential therapies for different types of cancer and blood disorders. The company's shares have moved 3.2% on the market and are now trading at a price of $90.39.
In the company's annual report, for the year ended December 31, 2023, Blueprint Medicines reported a net loss of $507.0 million, a decrease from the previous year's net losses of $557.5 million in 2022 and $644.1 million in 2021. The company has an accumulated deficit of $2,339.9 million as of December 31, 2023. Revenue for the year primarily consisted of product sales of AYVAKIT/AYVAKYT and collaboration and license revenue under their collaboration agreements. The company expects net product revenues to increase in 2024 as they continue to add new patients onto AYVAKIT/AYVAKYT, including advanced systemic mastocytosis and indolent systemic mastocytosis with the recent label expansion.
Blueprint Medicines financed its operations primarily through public offerings of common stock, private placements of convertible preferred and common stock, collaboration and license agreements, future royalty and revenue monetization, and a term loan, with an aggregate of $3.7 billion received from such transactions through December 31, 2023. The company anticipates variability in its expenses in future periods due to ongoing activities, including maintaining and expanding its sales, marketing, and distribution infrastructure, seeking marketing approval for avapritinib in additional geographies, and continuing to discover, validate, and develop additional drug candidates.
For more information, read the company's full 10-K submission here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $44,521 | $66,512 | $793,735 | $180,080 | $204,036 | $216,204 |
| Net Margins | -532% | -523% | 40% | -358% | -273% | -257% |
| Net Income (k) | -$236,642 | -$347,694 | $313,882 | -$644,085 | -$557,517 | -$554,713 |
| Net Interest Expense (k) | $73 | $13,732 | $6,599 | $2,386 | -$16,767 | -$22,863 |
| Depreciation & Amort. (k) | $4,246 | $5,300 | $6,600 | $6,479 | $11,735 | $17,150 |
| Diluted Shares (k) | 43,867 | 47,829 | 56,168 | 58,518 | 60 | 60,688 |
| Earnings Per Share | -$5.39 | -$7.27 | $5.59 | -$11.01 | -$9347.72 | -$9.19 |
| EPS Growth | n/a | -34.88% | 176.89% | -296.96% | -84802.09% | 99.9% |
| Avg. Price | $73.94 | $79.49 | $78.75 | $97.29 | $64.75 | $90.15 |
| P/E Ratio | -13.72 | -10.93 | 14.09 | -8.84 | -6.93 | -9.81 |
| Free Cash Flow (k) | -$187,686 | -$292,028 | $383,876 | -$301,742 | -$511,196 | -$492,194 |
| CAPEX (k) | $12,677 | $14,013 | $3,159 | $3,089 | $8,919 | $12,870 |
| Current Ratio | 8.29 | 4.85 | 7.09 | 3.7 | 5.71 | 4.09 |
Blueprint Medicines' stock may be overvalued at a price of $90.39 due to several concerning factors. While the company's revenues are rapidly growing at a rate of 31.2%, the flat capital expenditure trend, averaging -0.7% over the last 5 years, and the consistently negative earnings per share growth rate of -9.3% over the last 6 years indicate potential operational and financial challenges.
In terms of value factors, Blueprint Medicines exhibits a poor record of retained earnings, with a value of $-2.23 billion, and consistently negative free cash flows, averaging $-233.5 million over the last 5 years. The compounded average growth rate for free cash flows over this period is -15.5%. Additionally, the negative trailing twelve month P/E ratio further underlines the company's overvaluation.
