Blueprint Medicines Stock Up Despite Lower-Than-Expected Q1 Earnings

Core Viewpoint - Blueprint Medicines Corporation reported a wider-than-expected adjusted loss in Q1 2025, but shares rallied due to an optimistic revenue guidance for its product Ayvakit [1][2]. Financial Performance - The adjusted loss for Q1 2025 was 74 cents per share, compared to the Zacks Consensus Estimate of a loss of 42 cents, and a loss of $1.32 per share in the same quarter last year [1]. - Quarterly revenues reached $149.4 million, all from Ayvakit sales, missing the Zacks Consensus Estimate of $171.4 million, but representing a 55% year-over-year increase [2]. - Ayvakit sales totaled $149.4 million, with $129.4 million from U.S. sales and $20 million from ex-U.S. sales, marking a 61% year-over-year increase [4]. Product and Market Insights - Ayvakit is approved for treating PDGFRA Exon 18 mutant gastrointestinal stromal tumors and advanced systemic mastocytosis, with its label expansion in 2023 increasing the eligible patient population [3][5]. - The company did not report any collaboration and license revenues in Q1, compared to $3.6 million in the same quarter last year [5]. Cost Management - Research and development expenses were $91.9 million, up 4% year-over-year, while selling, general, and administrative expenses were $95.8 million, up 15% year-over-year [11]. Cash Position - As of March 31, 2025, the company had cash, cash equivalents, and investments totaling $899.8 million, an increase from $863.9 million as of December 31, 2024 [12]. Future Outlook - The company raised its 2025 revenue guidance for Ayvakit to approximately $700-$720 million, up from the previous range of $680-$710 million [13]. - Blueprint Medicines aims for Ayvakit sales to reach $2 billion by 2030 and has reduced cash burn by over 50% in 2024, with expectations for further reductions in 2025 [14]. Pipeline Developments - The company initiated two phase II proof-of-concept studies for BLU-808, a wild-type KIT inhibitor, following positive results from a phase I study [15][16].