Raymond James has adjusted its valuation on BridgeBio Pharma (NASDAQ:BBIO), increasing the firm's price target to $89.00 from $85.00 while retaining an Outperform rating. The move follows the release of positive Phase 3 data for infigratinib in achondroplasia, data that prompted a notable market reaction.
Shares of BridgeBio are trading at $80.07, having rallied 15.06% over the past week and sitting approximately 0.97% below the stock's 52-week high of $81.33, according to InvestingPro data.
Trial outcomes and endpoints
The PROPEL Phase 3 trial reached its primary endpoint, with an LS mean difference in annualized height velocity versus placebo of +1.74 cm/year (p
Investigators also reported a statistically significant change from baseline in height Z-score, registering an LS mean improvement of +0.32 standard deviations compared with placebo (p
In another summary of the efficacy readout, the study showed a mean treatment difference of +2.10 cm/year in annualized height velocity versus placebo, findings that the company and market participants highlighted as material for the program.
Safety profile
Safety data from PROPEL were described as relatively clean. There were no discontinuations attributed to adverse events and no observed adverse events characteristic of FGFR1/2 inhibition. The trial recorded three instances of mild, transient, asymptomatic hyperphosphatemia, representing roughly 4% of trial participants.
Regulatory path and commercial assumptions
BridgeBio intends to file regulatory submissions with the U.S. Food and Drug Administration and the European Medicines Agency for infigratinib in achondroplasia during the second half of 2026. Following the trial result, Raymond James raised its internal probability of success for the program from 65% to 90%, while leaving its long-term peak sales forecast for the asset at about $1 billion.
Financing and market context
The company has recently priced a convertible notes offering totaling $550 million. The notes carry a 0.75% interest rate and a 45% conversion premium. They are convertible at a rate of 9.0435 shares per $1,000 principal amount, which equates to a conversion price of $110.58 per share.
On the analyst front, Barclays initiated coverage of BridgeBio with an Overweight rating, citing the company's diversified late-stage pipeline as a growth driver. Following the infigratinib readout, BridgeBio's shares rose, while competitors BioMarin Pharmaceutical and Ascendis Pharma experienced stock declines.
Valuation and upcoming catalyst
BridgeBio's market capitalization stands at $15.39 billion and the analyst consensus recommendation is 1.33, a Strong Buy. InvestingPro Fair Value estimates indicate the stock appears slightly overvalued relative to those metrics. Investors will have another near-term data point when BridgeBio reports earnings in 7 days on February 19, an event that Raymond James notes could provide additional clarity on the company's development programs and financial position.
What this means
The Phase 3 results for infigratinib have prompted recalibration among sell-side analysts and a modest rally in the equity. Raymond James' uplift in the probability of success and its maintained peak sales assumption underline the firm's view that the asset's commercial potential remains intact pending regulatory review. The convertible note issuance and upcoming earnings release are additional items that market participants will monitor as they assess BridgeBio's balance sheet and program progression.
Note: Certain p-value details in the PROPEL readout were published in summary form and are presented here as reported.