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BioMarin's Q3 Loss Narrower than Expected, Outlook Revised

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BioMarin Pharmaceutical Inc . BMRN reported a loss of 44 cents per share in the third quarter of 2015 (including stock-based compensation expense), narrower than the Zacks Consensus Estimate of a loss of 66 cents but wider than the year-ago loss of 5 cents per share.

The company reported revenues of $208.9 million for the third quarter of 2015, up 18.4% from the year-ago period. Revenues were primarily driven by solid growth of Kuvan and Vimizim. However, revenues were below the Zacks Consensus Estimate of $220 million.

The Quarter in Detail

Vimizim contributed $65.1 million to total revenue, up 20.8% sequentially. Kuvan revenues increased 20.2% year over year to $64.2 million. This increase is attributable to an increasing number of patients and higher rates of compliance.

Naglazyme sales, which were largely impacted by uneven sales in Latin America, decreased 19.9% year over year to $54.1 million. However, the number of new patients continued to increase globally and was up 9% from the year-ago quarter.

BioMarin receives royalties from its partner Sanofi SNY on Aldurazyme. Aldurazyme royalties (excluding transfer revenues) amounted to $20.6 million, down 8.8% year over year.

Firdapse revenues came in at $3.8 million, down 19.1% year over year.

Research and development (R&D) expenses increased 26.3% to $158.7 million. Selling, general and administrative (SG&A) expenses were up 26.1% to $94 million.

Meanwhile, the company's Duchenne muscular dystrophy (DMD) drug, Kyndrisa (drisapersen), will be reviewed by the FDA's Peripheral and Central Nervous System Drugs Advisory Committee in a meeting scheduled on Nov 24, 2015. A final response from the agency is expected on Dec 27, 2015. Kyndrisa is also under review in the EU with an anticipated CHMP opinion in the first half of 2016 and final decision in the second half of 2016.

2015 Outlook Revised

BioMarin raised its guidance for 2015 total revenue to a range of $880 million - $900 million from the previous guidance of $850 million - $880 million. The Zacks Consensus Estimate of $903 million is slightly above the company's guidance range.

Vimizim sales are now expected in the range of $220 million - $235 million compared to the previous guidance of $200 million to $220 million and Kuvan sales in the range of $235 million to $245 million against the prior guidance of $210 million to $230 million.

Naglazyme revenues are expected to be $300 million - $310 million against the previous guidance of $315 million - $340 million. Negative currency movement is expected to impact revenues by about $40 million to $50 million.

While SG&A expenditure is expected in the range of $400 million - $410 million compared to the previous guidance of $360 million - $395 million, the company continues to expect R&D expenditure in the range of $610 million - $640 million.

BioMarin carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Bayer AG BAYRY and AMAG Pharmaceuticals, Inc. AMAG , both sporting a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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