BioMarin Pharmaceutical Inc.
's (
BMRN
) second quarter 2012 loss of 27 cents per share was wider than the
Zacks Consensus loss estimate of 20 cents per share and the
year-ago loss of 5 cents per share. The wider loss was due to an
increase in operating expenses, which offset the increase in
revenues.
Total revenues climbed 12.1% to $124.0 million in the reported
quarter, beating the Zacks Consensus Estimate of $122 million. The
increase in total revenues was attributable to higher net product
revenues.
The Quarter in Details
Net product revenues in the reported quarter climbed
approximately 12.2% to $123.0 million. Naglazyme, approved for
treating MPS-VI, a rare genetic enzyme deficiency disorder,
accounted for the bulk of the net product revenues recorded in the
quarter. Revenues from the drug increased 4.3% to $62.9
million.
Net product revenues from Kuvan tablets, indicated for treating
mild-to-moderate forms of phenylketonuria, grew 20.5% to $34.7
million. BioMarin is working on expanding Kuvan's label and is
conducting a randomized, placebo-controlled, 13-week outcomes
study. Top-line results from the study are expected in the second
quarter of 2013.
Revenues from another enzyme replacement therapy, Aldurazyme,
co-marketed with
Sanofi
(
SNY
), shot up 26.0% to $21.8 million. BioMarin recorded an increase of
8% in the number of Aldurazyme patients.
Net revenues from Firdapse, currently marketed in EU, were $3.6
million in the quarter, up 12.5% year over year. Firdapse was
launched in April 2010, in the EU, for treating patients suffering
from LEMS -- a rare autoimmune disorder. The drug has performed
disappointingly since launch.
Both research & development (R&D) expenses (up 47.1%)
and selling, general &administrative expenses (SG&A)
expenses (up 25.7%) shot up in the quarter, leading to a 41.1% rise
in total operating expenses.
We are encouraged by BioMarin's efforts to develop its pipeline.
With multiple pipeline events lined up, R&D costs are expected
to increase further in the coming quarters.
2012 Outlook
BioMarin continues to expect total revenues in the range of
$475-$510 million, total product revenue in the range of $470-$505
million, Naglazyme net product revenues in the range of $250-$265
million, Aldurazyme at $81-$87 million and Firdapse at $13-$17
million. However, BioMarin increased its guidance for net product
revenues from Kuvan to $130-$140 million from $126-$136
million.
While the SG&A guidance remained unchanged at $195-$205
million, the R&D guidance was raised to $285-$295 million, from
the previous range of $265-$275 million.
Our Recommendation
We have a long-term Neutral recommendation on BioMarin, which
carries a Zacks #3 Rank (Hold) in the short run. While we are
pleased to see the company working on its pipeline, we prefer to
remain on the sidelines pending further pipeline development.
BIOMARIN PHARMA (BMRN): Free Stock Analysis
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