Stock of the Day

May 27, 2020

BioMarin Pharmaceutical (BMRN)

$65.23
+$0.56 (+0.9%)
Market Cap: $12.52B

About BioMarin Pharmaceutical

BioMarin Pharmaceutical Inc. develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. Its commercial products include Vimizim, an enzyme replacement therapy for the treatment of mucopolysaccharidosis (MPS) IV type A, a lysosomal storage disorder; Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase for patients with MPS VI; and Kuvan, a proprietary synthetic oral form of 6R-BH4 that is used to treat patients with phenylketonuria (PKU), an inherited metabolic disease. The company's commercial products also comprise Palynziq, a PEGylated recombinant phenylalanine ammonia lyase enzyme, which is delivered through subcutaneous injection to reduce blood Phe concentrations; Brineura, a recombinant human tripeptidyl peptidase 1 for the treatment of patients with ceroid lipofuscinosis type 2, a form of Batten disease; Voxzogo, a once daily injection analog of c-type natriuretic peptide for the treatment of achondroplasia; and Aldurazyme, a purified protein designed to be identical to a naturally occurring form of the human enzyme alpha-L-iduronidase. In addition, it develops Roctavian, an adeno associated virus vector, for the treatment of patients with severe hemophilia A. The company serves specialty pharmacies, hospitals, and non-U.S. government agencies, as well as distributors and pharmaceutical wholesalers in the United States, Europe, Latin America, and internationally. BioMarin Pharmaceutical Inc. has license and collaboration agreements with Sarepta Therapeutics, Ares Trading S.A., Catalyst Pharmaceutical Partners, Inc. The company was incorporated in 1996 and is headquartered in San Rafael, California.

Today's Trend

BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) shares moved higher after the company reached a global patent settlement with Ascendis Pharma concerning Yuviwel. The agreement removes a significant legal overhang and provides BioMarin with royalty payments on Yuviwel sales in the U.S., European Union, Brazil and South Korea.

  • Patent disputes resolved: BioMarin and Ascendis agreed to end all pending global patent-related proceedings, including the U.S. International Trade Commission case. The settlement reduces litigation uncertainty and gives BioMarin an opportunity to generate royalty revenue without directly commercializing Yuviwel. BioMarin Announces Global Settlement With Ascendis Pharma
  • Analyst target raised: Jefferies increased its BioMarin price target from $104 to $105 and maintained a Buy rating, implying substantial potential upside from the referenced $65.23 share price. ASND and BMRN Stocks Rise on Patent Settlement
  • Mixed analyst view: HC Wainwright raised its target modestly from $59 to $60 but retained a Neutral rating, indicating that the settlement is viewed favorably but may already be reflected in the stock’s valuation. Analyst Views on BMRN

Overall, the immediate catalyst for BMRN is the removal of patent risk and the prospect of royalty income. Investors may continue to focus on the eventual size and timing of those royalties, as well as whether Yuviwel materially affects BioMarin’s competitive position and earnings outlook.

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