Projecting Big Growth For This $13 Billion Biotech Name
Here is how to initiate a holding in the name with a covered call order.
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The first full week of trading for the fourth quarter was a bit choppy. Higher energy costs and interest rates continue to be increasing headwinds for the economy. As I highlighted in my column on Friday, market breadth is quite dismal, despite the NASDAQ and S&P 500 hitting all-time highs earlier this week. The biotech sector is just one of many significant laggards in the market over the past few months.
Today, I am going to take advantage of lower entry points to spotlight a recent covered call trade for my portfolio. It is around a mid-cap named BridgeBio Pharma, Inc. (BBIO) that has a market cap of just south of $13 billion. The company has one primary product on the market, known by its Attruby brand name. This is an oral high-affinity transthyretin (TTR) stabilizer. It was approved by the FDA in late 2024 to treat adults with cardiomyopathy of wild-type or variant transthyretin-mediated amyloidosis or ATTR-CM.Â
Attruby is now also approved in Europe and Japan and competes with several products including Pfizer’s (PFE) tafamidis in a market worth north of $20 billion. A potential competitor in the ATTR-CM space from AstraZeneca (AZN) and Ionis Pharma’s (IONS) failed in a Phase 3 study this summer, triggering a bit rally in BBIO in late July. The shares are down nearly 30% from that peak, providing a more advantageous entry point.
Attruby is off to an impressive marketing rollout. Sales in the first half of 2026 came in a bit above $400 million, a better than 270% increase over the same period in the prior year. BridgeBio is not resting on its laurels. The company is advancing a diverse pipeline and is counting on three additional FDA approvals over the next year.
The biggest of these opportunities is around an oral FGFR3 inhibitor and discontinued bile-duct cancer med that is now undergoing assessment for the treatment of achondroplasia and hypochondroplasia called infigratinib. Management believes this approval for these indications could unlock a $5 billion potential market. A once-weekly injectable CNP analog Yuviwel (navepegritide) from Ascendis Pharma’s (ASND) did garner accelerated approval for pediatric achondroplasia patients in February 2026. Infigratinib is marching toward approval for achondroplasia one year later.
An oral glycosylation substrate dubbed BBP-418 has a PDUFA date with the FDA where it should be green lighted for the treatment of limb-girdle muscular dystrophy type 2I/R9. This is an inherited neuromuscular disorder characterized by lower-limb weakness, which can lead to ambulation and other health complications.
The company’s oral antagonist of the calcium sensing receptor (CASR) called encaleret has a potential approval date next May for the treatment of autosomal dominant hypocalcemia type 1 (ADH1) and chronic hypoparathyroidism (CHP). Leadership pegs the domestic potential market of just north of $1 billion.
The company’s balance sheet was topped off with a recent secondary offering and if all goes according to plan, BridgeBio will become cash flow positive in the second half of 2027. The company’s revenues should just top $1 billion this fiscal year and analysts believe sales will rapidly accelerate to north of $4.5 billion by FY2030. That makes BBIO a solid GARP stock which I can make more attractive via the following covered call strategy.
Option Strategy
This is how one can initiate a holding in BBIO with a covered call order. Using the May $60 call strikes, fashion a covered call order with a net debit in the $51.50 to $52.50 a share range (net stock price – option premium). At the top of the range, this strategy provides downside protection of 20% with 15% upside potential even if this equity trades down 9% over the option duration.
At the time of publication, Jensen was long BBIO.
