Blueprint Medicines Corporation: An Undervalued Company With Attractive Prospects

Summary

• There have been multiple catalysts related to lead asset, avapritinib in 2020.
• The company also has other promising assets in its pipeline.
• Investors should consider risks such as R&D failure risks, regulatory risks, and market uncertainty.

Today, we will see why Blueprint Medicines Corporation (NASDAQ:BPMC) is an attractive pick in 2020.

Company overview

Founded in 2008 and headquartered in Cambridge, Massachusetts, Blueprint Medicines Corporation went public in 2015. The company is developing precision therapies by leveraging the science of small molecule kinase inhibitors to target genomic drivers in various cancers and rare genetic diseases.

Blueprint Medicines lead asset, avapritinib, is a potent and selective inhibitor of activated KIT and PDGFRA mutant kinases. Ayvakit (avapritinib) has been approved by the FDA for the treatment of GIST (gastrointestinal stromal tumor) harboring a PDGFRA (platelet-derived growth factor receptor alpha) exon 18 mutation, including D842V mutations. The company is also awaiting FDA approval for Ayvakit in fourth-line GIST indication. The company is also studying Ayvakit in the second line and third line GIST indications.

In rare diseases area, Blueprint Medicines has planned to file an NDA seeking approval for Ayvakit in advanced SM (systemic mastocytosis) indication. The company is also studying the drug in indolent SM indication.

Besides Ayvakit, the company is also studying another oral precision therapy, Pralsetinib, in indications such as RET-driven NSCLC (non-small cell lung cancer) and RET-mutation-positive MTC (medullary thyroid cancer).

Multiple data catalysts are expected for Ayvakit in oncology indications in 2020

In January 2019, FDA approved Ayvakit for PDGFRalpha Exon 18 mutant GIST, ahead of the PDUFA date of February 14, 2019. Blueprint Medicines has designed a go-to-market strategy for Ayvakit to ensure a successful commercial launch. The company has opted for creating awareness amongst physicians through on-field team and patients through online engagement. The company is also working to ensure a steady supply to specialty pharmacies and has been actively negotiating with payers for broad patient access.

In February 2020, Blueprint Medicines Corporation announced the inclusion of avapritinib as a recommended category 2A

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.