Biotech stocks put up a split showing at the J.P. Morgan Healthcare Conference in San Francisco, where names like BridgeBio Pharma, ARS Pharmaceuticals and Harmony Biosciences stood out with strong preliminary reports.
BridgeBio stock ramped up 16% to 33.73, while ARS shares pulled back from steeper gains, closing up a fraction at 11.26. Harmony Bio, a frequent contender among the top five biotech stocks, surged 7.7% to 36.45. BridgeBio stock broke out of a cup-with-handle base, topping an entry at 30.51.
All three put out — or indicated — big sales numbers for their key products.
Biotech Stocks Surge On Strong Prelims
BridgeBio announced more than 400 patients have received an Attruby prescription since the Food and Drug Administration approved it on Nov. 22. Attruby treats cardiomyopathy, a condition in which abnormal protein builds up on the heart muscle, causing problems.
This suggests the Street's forecast for Attruby to generate about $80 million in sales this year is "likely light," Mizuho Securities analyst Salim Syed said. "We would expect this number to increase," he added.
"Bottom line, there has been some debate on the Street whether this is a launch to own," he said in a client note. "We would argue today's data point suggests the 'yes' camp here, and we could potentially see some constructive buying of the stock on this basis."
He has an outperform rating on the biotech stock.
Similarly, ARS Pharma disclosed about $6.5 million in sales of its allergic reaction spray, Neffy. That walloped forecasts ranging from $4.3 million to $4.6 million, Leerink Partners analyst Roanna Ruiz said in a report to clients.
The company also said it has roughly $314 million in cash and cash equivalents, which should give it a three-year runway to continue launching Neffy in the U.S.
She rates that biotech stock an outperform.
Shares Jump On Bullish Numbers
Harmony Bio and Axsome Therapeutics also put up bullish preliminary numbers.
Harmony calls for $201 million and $714 million in fourth-quarter and 2024 sales, respectively. That was mostly in line with expectations for $199 million and $714 million, Needham analyst Ami Fadia said in a report. The average number of patients on narcolepsy drug Wakix climbed to about 7,100 at the end of the fourth quarter, up from 6,800 at the end of the third.
The company also said it expects $820 million to $860 million, the midpoint of which was in line with forecasts for $838 million, she said.
"Overall, it was good to see the preliminary revenues for 2024 and updated revenue guidance for 2025, although given that the revenues were mostly in-line with consensus expectations, we do not anticipate a big move in the stock based on this update," she said.
But the biotech stock surged within a consolidation where it's facing down a buy point of 41.61, according to MarketSurge.
Axsome preannounced $92.6 million in fourth-quarter sales. That easily beat William Blair analyst Myles Minter's forecast for $88.4 million and was narrowly ahead of the Street's call for $92.1 million. The company also expects $291.4 million in sales for the year.
Axsome stock jumped 11.5% to 89.27. Shares are consolidating with an entry at 105.
Setbacks For Some Biotech Stocks
While Cartesian Therapeutics ramped 8.9% to 18.33 on a series of updates, biotech stocks Beam Therapeutics and SpringWorks Therapeutics fell on their announcements and updates.
Beam stock fell 3.2% to 25.54. Investors are closely focused on the company's treatment for alpha-1 antitrypsin deficiency, or AATD. The disease is a genetic disorder that can cause problems in the liver or lungs. The company expects to provide an update on at least seven patients who've received its gene-editing treatment in the first half of the year.
SpringWorks preannounced $61.5 million and $172 million in sales of its drug Ogsiveo for the fourth quarter and 2024, respectively. Ogsiveo treats tumors that can grow slowly or aggressively on the bones, organs, blood vessels and/or nerves.
Those numbers beat expectations, but the biotech stock tumbled 13.9%, closing at 37.01.
Follow Allison Gatlin on X/Twitter at @IBD_AGatlin.
