BridgeBio Pharma (BBIO): A Billionaire’s Biotech Play with Regulatory Momentum and Debt Risks

The Biotech Bet Billionaire Andreas Halvorsen Can’t Quit
When billionaire hedge fund manager Andreas Halvorsen reduced his stake in BridgeBio Pharma (NASDAQ: BBIO) by nearly 3.1 million shares in early 2025, skeptics questioned his conviction. Yet, Viking Global Investors, Halvorsen’s firm, still holds 11.7% of the company’s outstanding shares—a signal that BBIO remains a core position in his high-conviction portfolio. This paradoxical mix of caution and confidence reflects the duality of BridgeBio’s story: a cutting-edge genetic medicine pipeline paired with precarious financials. Let’s dissect whether this stock has the upside potential Halvorsen sees—or if it’s a gamble with a high risk of ruin.

Halvorsen’s Stake: Prudent Trimming or Strategic Hold?

Viking Global’s January 2025 sale of BBIO shares at $34.21—a 21% increase from its average purchase price—suggests Halvorsen is both capitalizing on gains and hedging against near-term volatility. Despite the trim, the firm’s 11.7% ownership stake ranks BBIO as its sixth-largest equity holding. This persistence underscores a belief in the company’s transformative pipeline, particularly its lead drug, acoramidis, which targets transthyretin amyloid cardiomyopathy (ATTR-CM).

The drug’s recent approvals in the UK and Japan (January and March 2025, respectively) have been critical. Clinical data presented at the American College of Cardiology conference showed acoramidis reduced mortality to 0% over 30 months in patients with this fatal heart condition, outperforming competitors like Alnylam’s Amvuttra.

Financial Health: Overvalued or Undervalued?

The numbers here are stark. While BBIO’s stock has risen 21% year-to-date, its GF Value of $26.80 (vs. a $34.21 stock price) suggests it’s trading at a 28% premium to its fundamental worth. Analysts flag its Altman Z-Score of -4.69—a red flag signaling a 95% probability of bankruptcy within two years—and a Piotroski F-Score of 4/9, which highlights weak profitability and operational metrics.

However, BridgeBio’s $500 million debt refinancing in February 2025 (converting high-interest debt to lower-cost convertible notes) offers temporary relief. The company also expects $605 million in milestone payments from acoramidis approvals in the UK, Japan, and Europe, which could stabilize its cash reserves.

Pipeline Momentum vs. Competitive Pressures

The U.S. FDA’s pending decision on acoramidis (expected by late 2025) is the make-or-break moment. If approved, the drug could capture a $1.5 billion market, as no TTR stabilizer with ≥90% efficacy is yet available in the U.S. Competitors like Alnylam (NASDAQ: ALNY) are already in the race, but acoramidis’s faster therapeutic effect—visible in 6 months vs. ALNY’s 12–18 months—could give it an edge.

The Wild Card: Oncology Expansion and SPAC Mergers

In March 2025, BridgeBio’s oncology division merged with SPAC Helix Acquisition Corp. II (HLXB), unlocking $500 million to advance treatments for genetic-driven cancers. While SPACs often carry execution risks, this move could diversify revenue beyond acoramidis—a critical step given the company’s reliance on a single drug.

Conclusion: A High-Reward, High-Risk Roll of the Dice

BridgeBio Pharma (BBIO) is a stock that rewards investors who bet on scientific breakthroughs but punishes those who underestimate financial fragility. Here’s the math:

• Upside: A U.S. FDA approval for acoramidis could push revenue to $500 million by 2027, potentially tripling the stock price.
• Downside: Without the FDA green light or a debt restructuring extension, the $26.80 GF Value could become a ceiling—or a floor.

Halvorsen’s continued stake and the recent regulatory wins suggest the former is plausible. But with a GF-Score of 42/100 (indicating limited upside) and a looming $500 million debt maturity in 2028, this is a stock for aggressive investors with a 3–5 year horizon.

In short, BBIO is a biotech Hail Mary—a play on genetic medicine’s future that could pay off spectacularly… or leave shareholders stranded. The FDA’s decision will decide which outcome unfolds.

Investment decisions should consider individual risk tolerance and consult with a financial advisor.