Mirum Pharmaceuticals Bolsters Rare Liver Disease Pipeline with Strategic Acquisition

Mirum Pharmaceuticals has announced a definitive agreement to acquire Bluejay Therapeutics, a strategic move designed to significantly enhance its portfolio targeting rare liver conditions. The transaction centers on brelovitug, a late-stage asset with both Breakthrough Therapy and PRIME designation status. The deal has prompted several equity research firms to raise their price targets on Mirum's stock, though shares have faced recent selling pressure.

The acquisition is structured with an upfront payment of $620 million, to be delivered in a combination of cash and Mirum shares. Potential commercial milestone payments could add up to $200 million, contingent on future revenue targets. To support the clinical development and commercialization efforts for the newly acquired pipeline, Mirum has secured approximately $200 million in gross proceeds through a private placement of its equity.

The primary objective of the deal is to integrate brelovitug, a monoclonal antibody therapy for chronic Hepatitis Delta Virus (HDV). This condition represents a significant area of unmet medical need within the rare liver disease landscape. The regulatory designations granted to brelovitug are intended to expedite its development and review process. Subject to receiving the necessary regulatory approvals, the transaction is scheduled for completion in the first quarter of 2026.

Market Analysts Revise Targets Upward

In response to the acquisition news, a number of prominent analysts have increased their valuation estimates for Mirum:

• Leerink Partners adjusted its target to $100 from $90, maintaining an "Outperform" rating.
• Raymond James raised its target to $110 from $82, with a "Strong Buy" recommendation.
• Morgan Stanley lifted its target to $95 from $81, keeping an "Overweight" stance.
• Cantor Fitzgerald set a target of $130 with an "Overweight" rating.
• H.C. Wainwright maintained a "Buy" rating with an $81 target.
• Baird increased its target to $88 from $80, reiterating an "Outperform" rating.

The collective analyst consensus currently stands at a "Buy" equivalent, with an average price target of $95.75.

Recent Stock Performance and Financial Health

Despite the positive analyst commentary, Mirum's equity experienced a downturn recently. On the last trading day, shares declined by approximately 1.14%, closing at $65.00 after opening at $65.75. Over the preceding ten sessions, the stock fell in seven, resulting in a cumulative loss of about 11.02%. The company's market capitalization is approximately $3.34 billion, with its share price having fluctuated between $36.88 and $78.54 over the past twelve months.

Should investors sell immediately? Or is it worth buying Mirum Pharmaceuticals?

Mirum's latest quarterly report, for Q3 2025, showed financial strength. The company posted adjusted earnings per share of $0.05, surpassing the consensus estimate of a $0.10 loss. Revenue reached $133.01 million, exceeding projections of $130.11 million and marking a 47.1% year-over-year increase. The quarter concluded with a net income of roughly $3 million.

Key revenue contributors included:
* LIVMARLI: Net product revenue totaled $92 million ($64 million from U.S. sales and $28 million internationally).
* Bile Acid Products: Generated $41 million in revenue.

The balance sheet remains robust, with a current ratio of 3.31 and a quick ratio of 3.16.

Ongoing Pipeline Development

Alongside the acquisition, Mirum continues to advance its internal research programs. The company recently enrolled the first patient in its BLOOM Phase 2 study for Fragile-X syndrome (MRM-3379). Raymond James analysts noted that this particular program is now considered "partially derisked."

Looking Ahead

With the Bluejay acquisition on track for an early 2026 close and financing secured, Mirum is positioning itself for a stronger foothold in the rare liver disease market. The high-potential brelovitug asset could provide the company with a fourth potential registration readout within the next 18 months, complementing its existing commercial portfolio and development pipeline.