Why BridgeBio Pharma Is Currently Trading At 2x Its IPO Price

by Trefis Team
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BridgeBio Pharma is a U.S.-based early stage bio-pharmaceutical development company relying on gene sequencing. The company listed on NASDAQ in June 2019 at a price of $17 and has seen its stock jump almost 100% in value since then. The stock price surged considerably on the day it listed due to a positive response from investors towards the company’s differentiated business model
BBIO seeds individual subsidiaries that have a single drug program headed by an industry expert. The company claims that by following the decentralized model, it is able to hire smaller teams (size of 8-30 scientists) and is able to develop a drug with cash outlays of around $30 Mil. Also, the company targets orphan diseases affecting 500-1,000 patients annually – helping it avoid competition from larger players.

We step back from the recent rally to review BridgeBio Pharma’s performance over the last few years, as a context for what might come next. Our Interactive dashboard – Why is BridgeBio Pharma (BBIO) trading at double its IPO Price?, reviews the near term reasons and the big picture.


The context for the last few years:

A closer look At BridgeBio Pharma’s Total Revenues over the last few years and the outlook.

Since the company is still in its initial stage of research & development and the company has not commercialized any drug, there are no revenues. Also, the company’s first drug is expected to be launched after 2021.


A closer look At BridgeBio Pharma’s Total Expenses over the last few years and the outlook.

Total Expense for BridgeBio increased substantially from $43.6 Mil in 2017 to $166.7 Mil in 2018; an increase of 282.6%. We expect Total Expense growth to be 101.6% in 2019.


How does BridgeBio Pharma’s Revenue Growth compare with rivals?

For more information on how BridgeBio Pharma’s revenue growth compares with Biogen, Amgen and Regeneron, view our interactive dashboard analysis.


How has  BridgeBio Pharma’s  LBT trended?

LBT for BridgeBio increased from $43.6 Mil in 2017 to $166.7 Mil in 2018. We expect LBT to increase by 101.6% to $336 Mil in 2019.

Since company has no revenue Expenses=LBT.


How has BridgeBio Pharma’s Net Income and EPS trended?

For more details about BridgeBio Pharma’s Net Income and EPS, view our interactive dashboard analysis.


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