BioMarin (BMRN) Q4 Loss Narrower than Expected; Sales Beat
BioMarin Pharmaceutical Inc.BMRN reported a loss of 37 cents per share in the fourth quarter of 2016 (including stock-based compensation expense), narrower than the year-ago loss of 57 cents as well as the Zacks Consensus Estimate of a loss of 39 cents per share.
Total revenue came in at $300 million in the quarter, up 32% from the year-ago quarter. The top line was aided by strong net product sales. Revenues also beat the Zacks Consensus Estimate of $297 million by 1%
BioMarin's shares are up 16.9% so far this year. This compares favorably with a decline of 2.9% registered by the Zacks classified Biomed/Genetics industry during this period.
Vimizim contributed $94 million to total revenue, up 59% year over year and 16% sequentially attributable to growth in new patients on Vimizim therapy.
In 2016, Vimizim, patients on commercial therapy grew 40% backed by further penetration in existing markets and addition of new markets. The company expects continued growth in 2017 as the franchise continues to benefit from robust underlying patient demand.
Kuvan revenues soared 38% to $90 million, reflecting strong contribution from North America and the addition of new patients in the international markets.
Naglazyme sales rose 25% year over year to $75 million. Naglazyme revenues vary on a quarterly basis primarily due to the timing of central government orders from Latin America. Nevertheless, the drug continued to witness steady patient growth in 2016 with the number of commercial patients increasing 9% in the year.
BioMarin received Aldurazyme royalties - totaling $35 million (down 10%) - from Sanofi's SNY Genzyme.
Research and development (R&D) expenses declined 3.8% to $152.0 million (excluding stock-based compensation expense) while selling, general and administrative (SG&A) expenses increased 25.5% to $118.0 million (excluding stock-based compensation expense).
Full-year sales improved 26% to $1.12 million, in line with the Zacks Consensus Estimate and also within the guidance range of $1.10−$1.15 billion. Revenues rose 26% year over year.
Adjusted loss per share was $1.03 in 2016, narrower than the year-ago loss of $1.61 per share.
Towards the end of the quarter, BioMarin initiated a global phase III study on vosoritide for the treatment of children with achondroplasia (the most common form of dwarfism) aged between 5-14 years for 52 weeks. This will be followed by an open-label extension study.
The company is also planning a separate phase II study to evaluate the effect of vosoritide in infants and toddlers.
Meanwhile a regulatory decision from the FDA for Brineura is expected on Apr 27, 2017. Brineura is also under review in the EU, where a decision should be out in the third quarter of 2017. The company is looking to get Brineura approved for the treatment of children with CLN2 disease, which is a form of Batten disease.
The company plans to submit a regulatory application to the FDA for pegvaliase for the treatment of phenylketonuria in the second quarter of 2017.
BioMarin expects total revenue in a range of $1.25 −$1.30 billion, representing double-digit revenue growth. The revenue guidance assumes the launch of Brineura in 2017. Beyond 2017, the company expects annual sales to grow approximately 15% throughout the rest of the decade.
Vimizim sales are expected in a range of $400-$430 million while Kuvan sales are projected in a range of $380−$410 million, representing an increase of about 14% over 2016 at the mid-point. Naglazyme sales are projected in a range of $300−$330 million.
R&D expenses are expected within $620-$650 million while SG&A expenses are projected in a range of $520-$550 million.
Adjusted earnings are expected to turn positive. The company expects adjusted net income of $30 - $70 million in 2017
BioMarin carries a Zacks Rank #3 (Hold). Stocks worth considering in the pharmaceutical sector are Celgene Corporation CELG and Summit Therapeutics plc SMMT , both with a Zacks Rank #2 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
BioMarin Pharmaceutical Inc. Price, Consensus and EPS Surprise
Shares of Celgene rose 16.5% in the past one year while earnings for 2017 rose by 0.8% in the past 30 days.
Shares of Summit Therapeutics rose 57.9% in the past one year while loss estimates for current year ending Jan 2018 have narrowed by around 2% in the past 30 days.
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