Blueprint Medicines Stock Lands Several Downgrades After Sanofi’s Buyout Deal, But Retail Bulls Keep The Faith

Blueprint Medicines came under pressure from Wall Street on Monday after at least six brokerages downgraded the stock following news of its $9.1 billion acquisition by French pharmaceutical giant Sanofi.

The stock closed at $127.79 on Monday, up 26.1% for the day. After-hours trading showed a slight decline of 0.1% to $127.67.

TD Cowen analyst Marc Frahm lowered the stock rating to ‘Hold’ from ‘Buy’ and established a price target of $130 based on the acquisition terms. 

JPMorgan reduced its rating to ‘Neutral’ from ‘Overweight’ and adjusted its target price to $129 from $130.

Wolfe Research reduced Blueprint's rating to ‘Peer Perform’ from ‘Outperform’ by noting that the deal values Blueprint at $129 per share. 

Oppenheimer lowered its stock rating to ‘Perform’ from ‘Outperform,’ while describing the agreement as a “solid outcome for shareholders.”

Scotiabank reduced its stock rating to ‘Sector Perform’ from ‘Outperform,’ while establishing a target price of $135. 

Wedbush assigned a $129 target after downgrading Blueprint to ‘Neutral’, while Needham downgraded it to ‘Hold.’

Blueprint Medicines shareholders will receive one non-tradeable contingent value right (CVR), entitling them to two potential milestone payments of $2 and $4 per CVR, contingent on achieving future development and regulatory milestones for BLU-808.

BLU-808 is an investigational oral inhibitor targeting wild-type KIT, which plays a role in mast cell activation involved in inflammatory diseases, including chronic urticaria.

Including these potential payments, the total equity value of the Sanofi acquisition rises to approximately $9.5 billion on a fully diluted basis.

Sanofi CEO Paul Hudson said this acquisition moves their rare and immunology portfolios forward.

Sanofi’s earnings and gross margin will benefit from the transaction after 2026, while the company’s financial guidance for 2025 remains unaffected.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume.

One user described the price movement as a positive surprise, reporting a roughly 30% gain on their investment, noting this was better than recent returns on SpringWorks Therapeutics, but lower than several earlier buyouts this year. 

Another user said that increased European pharma purchases of U.S. companies might be a strategy to gain favor with the Trump administration.

Blueprint Medicines’ stock has risen 46.6% so far in 2025.

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