Executive Summary

Q2 delivered strong topline: total revenue $138.2M, including $114.1M AYVAKIT net product revenue, up “more than 185%” y/y; operating loss narrowed materially as revenue scaled and opex stayed flat; net loss was $50.0M (–$0.80 diluted EPS) .
Management raised 2024 AYVAKIT revenue guidance to $435–$450M from $390–$410M on first-half outperformance and improved visibility around business drivers; R&D and SG&A are expected to remain relatively flat through year-end, supporting operating leverage .
Commercial drivers remain robust: low discontinuation and high compliance, expanding prescriber breadth with rising allergist participation, favorable free-goods mix stabilizing just below 20%, and early international traction (notably Germany); U.S. AYVAKIT revenue was $101.5M and ex-U.S. $12.7M in Q2 .
Strategic catalysts: BLU-808 (wild-type KIT) entered Phase 1 (healthy volunteers), with initial PK/PD/safety data expected early 2025; HARBOR Part 2 (elenestinib) targeted to initiate by year-end; guidance raise and pipeline progress are the near-term stock narrative drivers .

What Went Well and What Went Wrong

What Went Well
- Commercial execution: AYVAKIT net product revenue reached $114.1M; management highlighted “one of the most exciting rare disease launches,” raising full-year guidance on stronger-than-expected first-half performance .
- Durable fundamentals: low discontinuation and high compliance are driving multi‑year duration; prescribers with >10 patients are emerging, and allergist adoption continues to increase .
- International momentum: Germany is “off to the races” for ISM; ex‑U.S. revenue reached $12.7M in Q2, and more ISM launches expected in 2025; management expects international to be an important contributor over time .
What Went Wrong
- Still loss-making: despite revenue scale, Q2 recorded a net loss of $50.0M; operating expenses remained high at $181.2M though flat q/q; cost of sales rose partly due to GAVRETO product sale to Rigel .
- Seasonality and German pricing: management cautioned on seasonality affecting timing of new starts in H2 and potential revenue impact from German price negotiations into year-end .
- Free-goods tailwind stabilizing: free goods “just below 20%” since ISM launch—favorable but no longer a growing tailwind versus Q1; conversion dynamics will matter to sustain revenue yield per patient .

Financial Results

Summary P&L (USD Millions, except per-share). Columns: oldest → newest.

Metric	Q4 2023	Q1 2024	Q2 2024
Total Revenues	$72.0	$96.1	$138.2
AYVAKIT Net Product Revenue	$71.0	$92.5	$114.1
Collaboration/Other Revenue	$0.9	$3.6	$24.0
Total Cost & Operating Expenses	$177.1	$174.9	$181.2
Operating Income (Loss)	$(105.1) (calc)	$(78.8) (calc)	$(43.0) (calc)
Other Income (Expense), net	$(5.7)	$168.1 (incl. $173.7M debt gain)	$(6.8)
Net Income (Loss)	$(110.9)	$89.1	$(50.0)
Diluted EPS	$(1.82)	$1.40	$(0.80)

Notes: Operating Income (Loss) calculated as Total Revenues minus Total Cost & Operating Expenses using cited figures. Q1 other income includes a non‑cash debt extinguishment gain of $173.7M, inflating EPS .

AYVAKIT net product revenue – geography

Metric	Q1 2024	Q2 2024
U.S. AYVAKIT Net Product Revenue	$83.1M	$101.5M
ex‑U.S. AYVAKIT Net Product Revenue	$9.4M	$12.7M

KPIs and Operating Context

KPI	Q4 2023	Q1 2024	Q2 2024
Patients on AYVAKIT (U.S., approx.)	~1,000 as of Jan 2024	—	—
Free-Goods Share (since ISM launch)	—	~20% avg	just below 20% avg
Compliance	High (mgmt commentary)	High	High
Discontinuation	Low (mgmt commentary)	Very low	Very low
Duration (Adv. SM)	~25 months	~25 months	~25 months; ISM trending longer
Cash, Cash Equivalents & Investments	$767.2M (12/31/23)	$735.6M (3/31/24)	$868.5M (6/30/24)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AYVAKIT Net Product Revenue	FY 2024	$390M–$410M (May 2, 2024)	$435M–$450M (Aug 1, 2024)	Raised
AYVAKIT Net Product Revenue	FY 2024	$360M–$390M (Feb 15, 2024)	$390M–$410M (May 2, 2024)	Raised
R&D Expense Trend	FY 2024	Decline vs 2023 expected (maintained)	“Relatively flat” remainder of 2024	Maintained/Updated cadence
SG&A Expense Trend	FY 2024	Operating leverage; stable (maintained)	“Relatively flat” remainder of 2024	Maintained/Updated cadence
Cash Burn/Profitability	FY 2024	Cash burn to decline; path to self-sustainable profile	Durable capital position; path to self-sustainable profile reiterated	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’23 and Q1’24)	Current Period (Q2’24)	Trend
ISM launch trajectory	“On path” to >$2B peak; breadth and depth building; allergist share growing to mid‑30s	Another “very strong” quarter; prescribers with >10 patients now; durable efficacy/tolerability driving long duration	Strengthening
Free goods & Part D	Free goods down to ~20% avg since launch; Part D redesign aiding paid therapy	Average free-goods “just below 20%”; expected steady for rest of year	Stabilized favorable mix
Seasonality	Learning quarterly dynamics (Q4/Q1 impacts)	Seasonality to affect timing of starts but not annual outcome	Known headwind, manageable
International expansion	Europe ISM approval; Germany early momentum	Germany strong; broader ISM launches expected 2025; pricing negotiations a watch item	Building
BLU‑808 (WT KIT)	IND filing on track; pipeline-in-a-pill thesis	IND cleared; healthy volunteer study initiated; SAD/MAD data expected early 2025	Advancing to clinical data
Elenestinib (HARBOR)	Positive Part 1 ISM data; registrational planning	Part 2 on track to initiate by year-end; aim for clinical differentiation vs AYVAKIT	Toward pivotal
CDK2/BLU‑222 BD	Active partnership discussions; ASCO combo data	Partner sought to fund expensive breast cancer studies; strategy reiterated	Ongoing

Management Commentary

“We have delivered yet another very strong quarter of revenue... and we are well on the path to achieve more than $2 billion in potential peak sales.” — CEO Kate Haviland .
“AYVAKIT achieved $114.1 million in net product revenue... driven by growth in patients on AYVAKIT, low discontinuation, high compliance, and favorable free-goods mix.” — CCO Philina Lee .
“We are raising our AYVAKIT product revenue guidance... to $435 million to $450 million in 2024... and anticipate R&D and SG&A will remain relatively flat for the remainder of this year.” — CFO Mike Landsittel .
“We’ve moved BLU‑808 into the clinic... initial data early next year could be an important inflection point.” — COO Christina Rossi .

Q&A Highlights

Seasonality and Part D: Management expects seasonal timing effects on starts but not annual results; Part D redesign has stabilized free-goods share just below 20% for the year .
Eligibility lens broadening: Experienced prescribers are widening criteria to patients with one or two predominant symptoms; prevalence/diagnosis may be underestimated and growing .
Guidance cadence: No stocking impact; guidance reflects variables (starts, duration, compliance, free-goods, international); still implies substantial y/y revenue growth .
Duration/compliance: ISM duration trending longer than advanced SM’s ~25 months; high compliance and very low discontinuation continue in real‑world .
Pricing and dosing: No net pricing increases q/q; majority of ISM starts remain at 25 mg; 50 mg use is limited to centers of excellence in select cases .
International outlook: Germany leads ISM; additional countries expected in 2025; ex‑U.S. is a growing contributor to peak .

Estimates Context

S&P Global consensus estimates were unavailable for BPMC via our API at this time; therefore, we cannot provide comparisons vs consensus for Q2 2024. We will update comparisons once S&P Global mapping becomes available. Values would be retrieved from S&P Global.

Key Takeaways for Investors

The commercial engine is compounding: expanding prescriber breadth/depth, durable persistence, and stabilizing free-goods mix are supporting continued revenue scale; guidance was raised again on stronger fundamentals .
Operating leverage emerging: Operating loss narrowed substantially q/q as revenue scaled and opex remained flat; continued expense discipline positions the company toward a self‑sustaining profile .
International and pipeline add optionality: Germany is contributing now, with broader ISM launches targeted for 2025; BLU‑808 clinical data in early 2025 is a key pipeline catalyst; HARBOR Part 2 initiation in 2024 could reinforce SM leadership .
Watch items into H2: seasonal timing of starts, Germany price negotiations, and free‑goods stability may affect quarterly cadence but are not expected to impair full‑year targets per management .
Valuation narrative: Repeat guidance raises, visible launch durability, and multi‑asset mast cell franchise support a “durable growth” storyline; absence of estimates comparison this quarter is a temporary data limitation (to be remedied with S&P mapping).

Appendix: Additional Data Exhibits

Revenue and EPS vs prior periods (detail)

Metric	Q4 2023	Q1 2024	Q2 2024
Total Revenues ($M)	$71.957	$96.116	$138.157
Net Product Revenue ($M)	$71.034	$92.525	$114.115
Collaboration/Other ($M)	$0.923	$3.591	$24.042
Diluted EPS	$(1.82)	$1.40	$(0.80)

Cash & Liquidity

Cash, cash equivalents & investments: $868.5M as of June 30, 2024; management reiterated a “durable capital position” and path to a self‑sustaining profile .

Operational context quotes

“We continue to see strong and steady growth in patients on AYVAKIT... low discontinuation rates, high compliance, and continued upside in our commercial versus free goods mix.” — CCO Philina Lee .
“We believe [BLU‑808] data could mark an important inflection point... enabling us to rapidly establish clinical proof‑of‑concept in a range of mast cell disorders.” — COO Christina Rossi .

Blueprint Medicines Corp (BPMC)·Q2 2024 Earnings Summary