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Is it the right moment for investing in BioCryst Pharmaceuticals shares?

By: Invezz
Is it the right moment for investing in BioCryst Pharmaceuticals shares?

In less than several weeks, BioCryst Pharmaceuticals (NASDAQ: BCRX) shares have advanced from $7.2 above $12, and the current price stands around $10.2. According to the latest news, the FDA approved Rapivab (peramivir injection), which is positive news for BioCryst Pharmaceuticals shareholders.

Fundamental analysis: Rapivab (peramivir injection) is approved in the United States

BioCryst Pharmaceuticals, Inc. is an American pharmaceutical company that has a focus on oral drugs for rare and serious diseases. BioCryst has received approval for Orladeyo in December, and the convenience of oral therapy will continue to be the main selling point.

Orladeyo efficacy is not as great as that of its competitors because it reduces attacks of hereditary angioedema (HAE) by 30% to 44%. On the other side, Takhzyro and Haegarda reduce the number of attacks by 67% to 87%, but Orladeyo doesn’t need to become the market leader.

According to the latest news, the FDA approved a supplemental new drug application for Rapivab® (peramivir injection), which can be used for patients aged six months and older. This is positive news for BioCryst Pharmaceuticals shareholders because this drug was approved earlier only for patients aged two years and above.

“RAPIVAB (peramivir injection) is approved in the United States for the treatment of acute uncomplicated influenza in patients six months and older who have been symptomatic for no more than two days. These patients can be among those at greatest risk for severe outcomes, and RAPIVAB is an important antiviral with proven benefits,” said the chief medical officer of BioCryst.

After a post on Wallstreetbets called it ‘the most undervalued stock in the market,” shares of BioCryst Pharmaceuticals have exploded. My opinion is that BioCryst Pharmaceuticals shares are a risky investment option, and there are certainly better long-term investment opportunities at the moment.

The company still operates with loss, and with a market capitalization of $1.86B, this stock is extremely expensive. The book value per share is less than $0.2, and investors could have massive losses if they continue to hold BioCryst stock at the current level.

Technical analysis: BioCryst Pharmaceuticals shares remain in a bull market

BioCryst Pharmaceuticals shares have advanced from $7.28 to $12.90 since the beginning of January, and the current price stands around $10.2. BioCryst shares are overvalued, but they could advance again above $12 resistance.

Data source: tradingview.com

As long the price is above this trend line and $10 support, this stock is in the “buy” zone, and there is no indication of the trend reversal. If the price jumps again above $12, it would be a signal to trade shares, and the next target could be around $13 or even $14.

Summary

After a post on Wallstreetbets called it ‘the most undervalued stock in the market,” shares of BioCryst Pharmaceuticals have exploded. My opinion is that BioCryst Pharmaceuticals shares are a risky investment option, and there are certainly better long-term investment opportunities at the moment. BioCryst Pharmaceuticals reported that total revenue has increased by 242%Y/Y in Q3 to $6.1M, but a net loss was $46.12M (-22.7%).

The post Is it the right moment for investing in BioCryst Pharmaceuticals shares? appeared first on Invezz.

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