You can see the problem clearly, so I would start to work on it, with the understanding that it will reveal its secrets, the underlying soundness, or the deeper structural damage. It could go either way, so the charring is superficial and reparable, or the pipe would be messed up looking or unsmokeable. It think it may clean up pretty well, if it gets slightly misshapen getting rid of the fire damage. Don't be afraid to walk away from it, or consign it to a shop pipe.