Prime Highlights:
- Mirum Pharmaceuticals is acquiring Bluejay Therapeutics, adding the promising drug Brelovitugfor Hepatitis Delta Virus (HDV) to its pipeline.
- Analysts are optimistic, with Morgan Stanley maintaining an Overweight ratingand a price target implying 17% upside.
Key Facts:
- Brelovitug showed a 100% response rate in Phase 2 trialsand has FDA Breakthrough Therapy and EU PRIME
- Mirum’s strong finances, growing pipeline, and strategic acquisitionsposition the company for steady growth in rare disease treatments.
Background:
Mirum Pharmaceuticals (NASDAQ: MIRM) gained positive attention from analysts after announcing its plan to acquire Bluejay Therapeutics, a biotech company focused on rare liver diseases. Morgan Stanley kept its Overweight rating and set a price target of $81, indicating about 17% upside from Mirum’s current share price of $69.13. Analysts’ consensus rating remains bullish, with a strong buy average of 1.11 and price targets ranging between $80 and $95.
Under the terms of the deal, Mirum will pay $250 million in cash and $370 million in stock, with potential milestone payments of up to $200 million. Bluejay’s main drug, Brelovitug (BJT-778), treats chronic Hepatitis Delta Virus (HDV) and showed 100% response in Phase 2 trials.
The drug has received FDA Breakthrough Therapy and EU PRIME designations. Results from the Phase 3 studies, AZURE-1 and AZURE-4, are expected in the second half of 2026, which will allow for regulatory approval in the U.S. Mirum expects Brelovitug could reach over $750 million in peak sales.
Morgan Stanley said the acquisition is a smart move, helping Mirum become a leader in rare liver diseases while creating opportunities to use its existing commercial resources more effectively. The company’s combined pipeline is now projected to achieve peak sales exceeding $4 billion.
In addition to the acquisition, Mirum recently enrolled the first patient in its Phase 2 BLOOM study for MRM-3379, a treatment for Fragile X syndrome, and received a Paragraph IV Certification Notice from Sandoz challenging Livmarli patents. The company will present new results on its liver disease treatments at the AASLD annual meeting, including findings from the VANTAGE trial on volixibat.
Mirum’s strong finances and growing drug pipeline show its focus on rare diseases and steady growth.
