Key points:
- BridgeBio shares are looking to stage a comeback, but they lack momentum.
- Nevertheless, the biotech company has significant potential and could rally higher in future.
- In addition, the firm has an impressive drug pipeline that could fuel future gains.
The BridgeBio Pharma Inc (NASDAQ: BBIO) stock price edged 8.33% higher today in an attempt to recover from yesterday’s massive crash that saw its stock close 71.98% lower.
The crash was triggered by the release of late-stage trial data showing that its amyloid cardiomyopathy did not improve the distances walked by patients who took the drug compared to those on a placebo.
The disappointing trial data triggered the massive trial given that this was a late-stage study and the company had dedicated significant resources to developing the drug.
However, all hope is not lost as BridgeBio promised to extend the study for another 30 months to see if it could get a different result to salvage the drug.
Still, investors may have to wait a long time for the drug’s effectiveness to be proven despite meeting other endpoints in the study, such as being well-tolerated and stabilising transthyretin levels.
Neil Kumar, BridgeBio’s CEO, said: “The drug does appear to be pharmacologically active and well-tolerated, and we observed improvement on the quality of life with promising trends on adverse events leading to death. The drug seems to be doing what we are asking of it.”
Furthermore, the biopharma company has a comprehensive pipeline of drugs under development that could yield better results than its amyloid cardiomyopathy drug.
The drugs being developed by BridgeBio include several gene therapies, various precision oncology treatments, mendelian drugs and precision cardiorenal drugs.
As an investor, I would hold on to my shares despite the massive selloff given BridgeBio’s massive drug pipeline. Investors have to remember that it takes only one excellent drug to drive a significant rally in a company’s stock price.
Additionally, most biotech companies do not have drugs targeting over ten diseases simultaneously under development like BridgeBio, which gives it a significant edge over its competitors.
Investors looking to open new positions in the company may also find the current prices pretty attractive.
*This is not investment advice. Always do your due diligence before making investment decisions.
BridgeBio stock price edged 8.35% premarket to trade at $12.33, rising from Monday’s closing price of $11.38.