BioMarin Pharmaceutical Inc.
) third quarter 2012 loss of 4 cents per share was narrower than
the Zacks Consensus loss estimate of 21 cents per share and the
year-ago loss of 16 cents per share. The narrower loss was due to
an increase in total revenues.
Total revenues climbed 13% to $128.1 million in the reported
quarter, beating the Zacks Consensus Estimate of $127 million.
The increase in total revenues was attributable to higher net
The Quarter in Details
Net product revenues in the reported quarter climbed
approximately 11.9% to $126.3 million. Naglazyme, approved for
treating MPS-VI, a rare genetic enzyme deficiency disorder,
accounted for a significant portion of the net product revenues
recorded in the quarter. Revenues from the drug increased 11.8%
to $62.5 million.
Net product revenues from Kuvan tablets, indicated for
treating mild-to-moderate forms of phenylketonuria, shot up 19.3%
to $36.4 million. BioMarin is conducting a randomized,
placebo-controlled, 13-week outcomes study (PKU-016) in patients
treated with Kuvan. Top-line results from the study are expected
in the second quarter of 2013.
BioMarin recorded revenues from another enzyme replacement
therapy, Aldurazyme, co-marketed with
), of $23.8 million, up 3.5%.
Net revenues from Firdapse, currently marketed in EU, were
$3.6 million in the quarter, up 2.9% 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 13%)
and selling, general & administrative expenses (SG&A)
expenses (up 3.2%) shot up in the quarter, leading to a 7.5% rise
in total operating expenses.
We remind investors that the company is set to report results
from its much awaited GALNS phase III trial in
mucopolysaccharidosis Type IVA (MPS IVA) patients later this
year. BioMarin expects that the US Food and Drug Administration
(FDA) will approve GALNS in the fourth quarter of 2013.
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 Unchanged
BioMarin continues to expect total revenues in the range of
$475-$510 million and total product revenue in the range of
$470-$505 million. The company also maintained Naglazyme net
product revenues in the range of $250-$265 million, Kuvan in the
range of $130-$140 million, Aldurazyme in the range of $81-$87
million and Firdapse in the range of $13-$17 million.
BioMarin also reaffirmed its SG&A ($195-$205 million) and
R&D ($285-$295 million) expenses guidance.
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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