BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) Delivers a Better-Than-Expected Quarter

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BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) performed much better than expected by the market during its third quarter 2016.

The stock shot up 14.83% to end Monday at $4.49 on volume of 1.62 million shares.

Technically, yesterday’s jump has wrong-footed all those sellers who bailed from (or shorted) the stock when it fell through the $4 support line on November 3.

The stock did not test the 200-day moving average, and now is back above the 20-day and 50-day lines too.

However, $4.88 is a formidable resistance line and the true mettle of the stock will be known only if it is able to take out that level.

BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) in the third quarter

BioCryst reported third quarter EPS of $-0.16, which beat by $0.08, and revenue of $7.76 million which was higher than estimates by $1.82 million. However, though better than expected, revenue was actually down by 29.4% year on year.

The company explained that the fall in revenue was due mainly to “decreased RAPIVAB product sales associated with the transition of RAPIVAB commercialization to the Company’s partner, Seqirus UK Limited, as well as a decrease in collaborative revenue associated with galidesivir (formerly BCX4430) development, which is funded by U.S. Government contracts.”

Nevertheless, BioCryst was able to narrow its net loss during the quarter to $11.5 million, or $0.16 per share as compared to a net loss of $14.6 million, or $0.20 per share, for the third quarter 2015.

Cash and cash equivalents were $68.7 million as at end of the quarter.

BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) outlook

The current financial situation, including a new senior credit facility worth $23 million, is sufficient for the company’s cash runway to last till Q1 of 2018.

For 2016, the company expects to be able to generate operating cash in the range of $55 to $75 million.

“Our company’s primary focus is on the execution of the APeX-1 trial of BCX7353,” said Jon P. Stonehouse, President & Chief Executive Officer.  “The screening success rate in APeX-1 has been high, approximately 90%, similar to our previous studies in HAE. We are pleased that subject screening has gained momentum recently. As of last Friday, 19 subjects have been screened, of whom 16 have been randomized. Based on our current number of randomized patients, we are modifying our projection for reporting the results of part one to the first quarter of 2017.”

What is not commonly known, however, is that the company’s BCX4430 anti-viral treatment may have potential for treating the Zika virus infection, which has spread across to the US and Asia. “These study results add to the growing body of evidence of the potential utility of BCX4430 for treatment of a broad range of serious emerging viral infections, including Ebola virus disease and Zika virus disease,” said Dr. William P. Sheridan, SVP and Chief Medical Officer, referring to the positive study results for BCX4430 Delayed Treatment of Ebola Virus Infection in a Non-Human Primate Model.

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