BioCryst (BCRX) Q2 Revenue Jumps 50%

BioCryst Pharmaceuticals (BCRX 4.59%), a biotechnology company specializing in oral treatments for rare diseases, released its second quarter earnings on August 4, 2025, reporting its strongest quarterly results to date. The headline news was the company’s first significant profit on a generally accepted accounting principles (GAAP) basis, with GAAP revenue and non-GAAP earnings both outstripping Wall Street expectations. GAAP revenue was $163.4 million, 9.1% higher than the analyst consensus of $149.8 million, and non-GAAP earnings per share climbed to $0.15 versus the $0.007 estimate. The quarter marked a shift from prior-year losses to profit, as BioCryst reported GAAP net income of $5.1 million compared to a GAAP net loss of $12.7 million in Q2 2024, underscoring surging demand for ORLADEYO, which achieved $156.8 million in net revenue, up 45% year-over-year, and set a positive tone for the year ahead.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About BioCryst Pharmaceuticals and Its Core Business

BioCryst Pharmaceuticals is known for its focus on rare disease therapies and relies on a unique structure-guided approach to drug design. Its key product is ORLADEYO, an oral therapy for hereditary angioedema (HAE), a rare disorder causing severe and unpredictable swelling episodes. The company develops and commercializes treatments aimed at patient populations with few existing options, targeting both U.S. and international markets.

Recent business efforts have centered around expanding ORLADEYO’s reach and pushing pipeline candidates through early clinical trials. Success for BioCryst hinges on maintaining market momentum for ORLADEYO, progressing potential new treatments for conditions like Netherton syndrome and diabetic macular edema, and demonstrating financial discipline as revenues scale. Strong commercialization, especially in the U.S, and continued innovation are crucial factors for its ongoing growth.

Quarterly Highlights: Revenue Surge and Commercial Execution

GAAP revenue soared to $163.4 million, up 50% compared to the prior year, outpacing consensus estimates by $13.6 million. Nearly all of this revenue came from ORLADEYO sales, which grew 45% year over year to $156.8 million. The jump reflects persistent demand among both new and repeat prescribers—new U.S. prescribers reached a record of 69, up from 59 in Q1 2025. U.S. sales made up 89.5% of ORLADEYO’s global net revenues. The company cited improved conversion rates from free-to-paid prescriptions as a critical driver, with the paid prescription rate rising to an all-time high of approximately 84% by the end of April.

Profitability metrics also improved sharply. Non-GAAP operating income more than doubled year over year to $57.0 million. GAAP net income came in at $5.1 million, a move from a $12.7 million GAAP net loss in Q2 2024. Management attributed this to both revenue growth and operating leverage, supported by better payment collections and fewer patient discontinuations. The company also saw meaningful progress in expense control: research and development expenses rose 15%, mainly tied to pipeline progress, while selling and administrative costs jumped 43%, largely from deal-related costs and stock compensation. Despite the uptick in costs, operating leverage significantly improved thanks to the steep rise in revenue.

The company continued to accelerate its deleveraging strategy. It prepaid $75 million of its term debt and an additional $50 million after period-end, reducing the outstanding balance to $199 million as of July 2025. Interest expense fell 13% year-over-year. Cash, cash equivalents, and investments totaled $287.1 million at June 30, 2025, providing a strong base for debt reductions and future investment.

Product pipeline efforts moved forward as well. The pediatric ORLADEYO formulation for patients aged two to 11 is under review by the U.S. Food and Drug Administration, with an approval decision expected on December 12, 2025. Early-stage (phase 1) trials for BCX17725, an injectable protein therapy for Netherton syndrome, and Avoralstat, an oral treatment for diabetic macular edema, are ongoing as of 2025, with initial data readouts anticipated by year-end. Both programs target underserved patient groups, reflecting the company’s emphasis on innovation in the rare disease space.

A significant event in the quarter was the planned divestiture of the European ORLADEYO business. Management signaled this will be finalized by the fourth quarter, trimming geographic exposure but allowing for the full retirement of remaining term debt. Cash generation, net of the prepayment, totaled $44.6 million. While European contribution to revenue will end after Q3, management said full-year 2025 guidance already reflects this shift.

Outlook and Investor Considerations

BioCryst reaffirmed its full-year 2025 guidance for ORLADEYO revenue, targeting $580 million to $600 million. This range accounts for only three quarters of European contributions to full-year 2025 global net ORLADEYO revenue guidance, demonstrating confidence in U.S. and other international market growth. Operating expenses on a non-GAAP basis are expected to land between $440 million and $450 million for full-year 2025, in line with prior guidance. Management expects to continue generating net income and cash flow for full-year 2025, excluding the effects of debt prepayments.

Looking ahead, key areas for investors to watch include commercial performance of ORLADEYO amid rising competition, the sustainability of paid prescription rates and reimbursement patterns, and the progress of clinical pipeline assets. New data from pediatric, Netherton syndrome, and diabetic macular edema development programs could be meaningful drivers in future quarters.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.