We recently maintained our Neutral recommendation on
BioMarin Pharmaceutical Inc.
). Our target price is $62.00 per share.
Why the Reiteration?
BioMarin's first quarter 2013 loss of $0.31 per share was wider
than the Zacks Consensus Estimate of a loss of $0.28 and the
year-ago loss of $0.21 per share. The wider loss was due to
higher operating expenses. Total revenues climbed 9.7% to $127.9
million due to higher net product revenues.
We are, however, pleased with the efforts of BioMarin to develop
its pipeline. The most interesting candidate in BioMarin's
pipeline is Vimizim. BioMarin is looking to get Vimizim - an
enzyme replacement therapy - approved for treating patients
suffering from mucopolysaccharidosis type IVA (MPS IVA) - a rare
lysosomal storage disorder.
The candidate is under priority review in the US (target date:
Feb 28, 2014) for the above indication. Vimizim is also under
review in the EU. The Marketing Authorization Application for
Vimizim had been granted accelerated assessment status by the
European Medicines Agency. Consequently, BioMarin expects a
decision on Vimizim in the EU in the first quarter of 2014.
BioMarin is also seeking approval for Vimizim in Brazil.
We expect investor focus to stay on the regulatory updates
regarding Vimizim. Positive news from the regulatory agencies on
the candidate would further strengthen the company's product
BioMarin's product portfolio currently includes Aldurazyme,
Naglazyme, Kuvan and Firdapse. Aldurazyme, co-marketed with
), is available for the treatment of MPS-I
(mucopolysaccharidosis). Naglazyme is marketed for treating
MPS-VI. Kuvan is marketed for phenylketonuria. Firdapse is
marketed for treating patients suffering from Lambert Eaton
Stocks That Warrant a Look
While we expect BioMarin to perform in line with its peers and
industry levels in the coming months and advice investors to wait
for a better entry point before accumulating shares, one can
consider stocks such as
Biogen Idec Inc.
). Both stocks carry a Zacks Rank #1 (Strong Buy).
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