BioMarin Pharmaceutical Inc.
) 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
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
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
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,
), 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.
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
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.
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.
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