What happened
Shares of Blueprint Medicines (BPMC +0.00%) were down more than 12% as of 12:45 p.m. on Wednesday after the healthcare company announced second-quarter earnings. The stock is still up more than 27% so far this year.
NASDAQ: BPMC
Key Data Points
So what
Blueprint focuses on precision medicine to fight cancer and hematologic disorders. The company released second-quarter earnings and the numbers were generally positive. The company said that revenue, driven by increased sales from Ayvakit (Ayvakyt overseas) was $57.6 million, compared to $36.5 million in the same period last year.
Blueprint also narrowed its losses to $132.8 million, or an earnings per share (EPS) loss of $2.19, compared to a net loss of $159.7 million for the second quarter of 2022, or an EPS loss of $2.68. Analysts had expected an EPS loss of $2.54, so it was a slight earnings surprise.
Ayvakit was approved in 2020 to treat gastrointestinal stromal tumors and in 2021, it added the rare blood disorder systemic mastocytosis as an indication. Just this past May, it was approved to treat indolent systemic mastocytosis.
Now what
Knowing the numbers were improved, why did the stock swoon? Two likely reasons. Investors like to sell on good news, taking advantage of a positive announcement, but the selling got out of hand.
Also, investors were likely hoping for even better sales numbers for Ayvakit, but its indications are all quite rare. The cost of the therapy may be slowing its sales. According to a report in JAMA Oncology, the therapy had the highest wastage cost per patient ($27,200) of 22 anticancer therapies it reviewed, due to a high cost per bottle and limited pill strength availability. A 25-milligram oral tablet of Ayvakit is around $39,087 for a supply of 30 tablets.
The company's other approved therapy is Gavreto, used to treat adults with metastatic non-small cell lung cancer.
