Analysts Views Mixed on BioCryst Pharmaceuticals, Inc. (BCRX)

Several analysts have recently weighed in on BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), issuing notes to investors. SHAWN M. HARRISON of Longbow Research reiterated their Hold rating on the stock August 2015.

“BGC’s new CEO, Michael McDonnell outlined a portion of a new, yet developing, strategic roadmap that includes BGC delivering EBIT margins at an industry leading level of approximately 7%. While Mr. McDonnell has yet to visit all of BGC’s sites, the goal to operate at significantly greater margins will require plant optimization (likely further restructuring), rooting out and fixing or divesting underperforming businesses, and investing in high margin businesses including the leveraging North America operations, which is already operating near a 7% EBIT margin. ”

SHAWN also added, “BGC is on track to generate $90M of annualized restructuring savings by CY16 from the current program, including $30-$40M for CY15 ($26M to date). BGC expects to close the sale of the Asia-Pacific assets ($205M in proceeds) during CY3Q. LBR and the Quarter: Due to volume weakness in Brazil, which mirrored our checks, and metal headwinds ($2.75/lb vs. $2.92/lb guide and aluminum $0.80/lb vs. $0.82/lb guide), CY2Q sales of $1.11B missed guidance ($1.12-$1.17B).Metal pounds sold decreased 13% year over year. However, EBIT of $55M was at the high end of guidance ($40-$55M guidance vs. $45M consensus) on strength in the North America utility and communications businesses and steady contribution from the European submarine business, which we had not anticipated. As such, non-GAAP EPS of $0.36 (vs. $0.20-$0.40 guidance) beat consensus ($0.26).”

SHAWN said about its volume, “Due to volume weakness in Brazil, which mirrored our checks, and metal headwinds (copper $2.75/lb vs. $2.92/lb guide and aluminum $0.80/lb vs. $0.82/lb guide), CY2Q sales of $1.11B missed guidance ($1.12-$1.17B). Metal pounds sold decreased 13% year over year on softness in Brazil mirroring our checks including temporary delays of transmission projects and weak volumes in Europe since the exit of low value-add markets negated stabilizing construction trends that growth in North American transmission projects only partly offset. However, EBIT of $55M was at the high end of guidance ($40-$55M guidance vs. $44M consensus) on strength in the North America utility and communications businesses and steady contribution from the European submarine business, which we had not anticipated. As such, non-GAAP EPS of $0.36 (vs. $0.20-$0.40 guidance) beat consensus ($0.26).”

BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) designs, optimizes and develops novel small molecule drugs that block key enzymes involved in rare diseases. BioCryst’s ongoing development programs include oral plasma kallikrein inhibitors for hereditary angioedema; avoralstat, BCX7353 and other second generation compounds, and BCX4430, a broad spectrum viral RNA polymerase inhibitor. This press release contains forward-looking statements, including statements regarding future results, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors which may cause BioCryst’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements.

On Oct 08, 2015 Advancing once-daily BCX7353 into a Phase 2 trial in hereditary angioedema patients BioCryst Pharmaceuticals, Inc.(NASDAQ:BCRX), +4.15% announced that the randomized, placebo-controlled, Phase 1 clinical trial of orally-administered BCX7353 in healthy volunteers successfully met all of its objectives. The safety, tolerability, drug exposure and on-target plasma kallikrein inhibition results strongly support advancing the development program into a Phase 2 study in hereditary angioedema (HAE) patients. Oral BCX7353 was generally safe and well tolerated at all doses up to 500 mg once-daily for 7 days and 350 mg once-daily for 14 days in healthy volunteers, and no dose-limiting toxicity was identified. There were no serious adverse events (AEs) and most AEs were mild. Two subjects discontinued the study due to moderate gastrointestinal AEs. One subject developed a delayed-type hypersensitivity rash after completing seven days of study drug; the rash resolved quickly with oral and topical steroids. No clinically significant laboratory abnormalities were seen at any dose or duration tested.

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