BioCryst (BCRX) Plunges 0.26% Amid Legal Battle Over ORLADEYO Patents

BioCryst Pharmaceuticals (BCRX) fell 0.26% on Friday, marking its fourth consecutive day of declines and a cumulative drop of 3.54% over four sessions. The stock hit its lowest level since April 2025, with an intraday decline of 1.96%, reflecting heightened market sensitivity to ongoing legal and strategic challenges.

The company’s legal battle to defend its flagship drug ORLADEYO against generic competition has emerged as a critical driver of volatility. BioCryst recently filed a patent infringement lawsuit against Annora Pharma in Delaware, alleging that the generic applicant’s ANDA infringes on three key patents set to expire in 2039. The outcome of this litigation could determine BioCryst’s ability to maintain market exclusivity for ORLADEYO, which generated $124.2 million in Q4 2024 revenue and remains central to its financial stability.

Despite the legal uncertainty, BioCryst has reported robust financial performance, with ORLADEYO’s Q2 2025 revenue reaching $163.4 million—a 50% year-over-year increase. Analysts from Piper Sandler, JMP Securities, and H.C. Wainwright have maintained optimistic ratings, citing the drug’s strong demand, pediatric expansion plans, and pipeline advancements. The company is preparing to submit a supplemental NDA for pediatric HAE use, a move analysts estimate could unlock a $500 million market segment.

Strategic investments in its pipeline further underscore BioCryst’s long-term growth potential. Key programs include BCX1777 for Netherton syndrome and Avoralstat for diabetic macular edema, both of which aim to diversify revenue streams beyond ORLADEYO. However, near-term risks remain tied to the patent litigation outcome, with a potential generic entry threatening to erode profit margins. Executive transitions, including the departure of CFO Anthony Doyle and CEO Charlie Gayer’s leadership, have also introduced short-term operational uncertainties.

Investor sentiment remains divided, balancing confidence in BioCryst’s financial strength and pipeline with concerns over IP vulnerabilities. The company’s ability to navigate these challenges while advancing its strategic initiatives will likely dictate its stock’s trajectory in the coming months.