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Why Is BioMarin (BMRN) Down 2.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have lost about 2.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BioMarin due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Q2 Earnings & Revenues Beat Estimates
BioMarin reported second-quarter 2022 adjusted earnings of 59 cents per share, beating the Zacks Consensus Estimate of 43 cents. Earnings rose 11.3% from the year-ago quarter’s figure driven by higher revenues, which offset the impact of higher marketing costs.
Total revenues were $533.8 million in the reported quarter, up 6% from the year-ago quarter’s level. The revenues beat the Zacks Consensus Estimate of $511 million.
Quarter in Detail
Product revenues (including Aldurazyme) were $517.7 million in the quarter, up 6.4% year over year. Product revenues from BioMarin's marketed brands (excluding Aldurazyme) were up 5% year over year to $480.4 million on higher revenues from the new drug, Voxzogo, which offset lower sales of Kuvan and Naglazyme. Royalty and other revenues were $16.1 million in the quarter, up 7.4%.
Vimizim sales were up 1% year over year to $173.3 million, while Naglazyme sales declined 3% to $115.8 million. Vimizim and Naglazyme sales were lower than in the first quarter due to the volume of large irregular orders placed in the first quarter. Both Naglazyme and Vimizim experience uneven quarterly revenue patterns.
Brineura generated sales of $37.7 million in the quarter, up 24% year over year, driven by 18% year-over-year growth in commercial patients.
The new drug Voxzogo, approved last year in the United States and Europe to treat achondroplasia, generated sales worth $34.4 million in the second quarter compared with $19.7 million in the first quarter. Higher sales of Voxzogo were driven by new patients initiating therapy in Europe as well as the United States. As of Jun 30, an estimated 446 children were being treated with Voxzogo, of which 164 were from the United States and 282 from international markets. Voxzogo was approved in Japan and Australia in the quarter.
In the PKU franchise, Kuvan revenues declined 27% to $57.6 million due to generic competition as the drug lost U.S. market exclusivity in late 2020.
Palynziq injection sales grossed $61.6 million in the quarter, up 4% year over year. Sales were below management expectations. BioMarin expects Palynziq patient trends to grow at a slower pace than initial expectations. Palynziq sales continue to be hurt as PKU clinics particularly in the United States, to treat adult PKU patients with Palynziq, have not recovered their capacity lost due to the pandemic.
Product revenues from Aldurazyme totaled $37.3 million, up 33% due to the favorable timing of product fulfillment to Sanofi’s subsidiary Genzyme.
2022 Sales View Up Slightly
Despite ongoing economic challenges like currency fluctuations, BioMarin slightly raised its previously issued sales guidance for 2022 from a range of $2.05-$2.15 billion to $2.06-$2.16 billion, backed by the growth of Voxzogo.
BioMarin now expects to record Voxzogo sales in the range of $130-$160 million in 2022, up from the previous guidance of $100-$125 million, backed by robust demand for the drug in the United States and Europe.
Vimizim sales are expected in the range of $655-$700 million (previously $650-$700 million). Kuvan sales are anticipated in the range of $210-$235 million (previously $225-$250 million). Palynziq sales are expected in the range of $250-$275 million (previously $280-$310 million). Naglazyme sales are expected between $415 million and $450 million (previously $400 million and $440 million). Brineura sales are expected within $145-$160 million (maintained). BioMarin expects Roctavian to be a modest contributor to second-half revenues.
BioMarin maintained its adjusted net income guidance in the range of $350-$390 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -21.01% due to these changes.
VGM Scores
Currently, BioMarin has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, BioMarin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is BioMarin (BMRN) Down 2.3% Since Last Earnings Report?
A month has gone by since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have lost about 2.3% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BioMarin due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Q2 Earnings & Revenues Beat Estimates
BioMarin reported second-quarter 2022 adjusted earnings of 59 cents per share, beating the Zacks Consensus Estimate of 43 cents. Earnings rose 11.3% from the year-ago quarter’s figure driven by higher revenues, which offset the impact of higher marketing costs.
Total revenues were $533.8 million in the reported quarter, up 6% from the year-ago quarter’s level. The revenues beat the Zacks Consensus Estimate of $511 million.
Quarter in Detail
Product revenues (including Aldurazyme) were $517.7 million in the quarter, up 6.4% year over year. Product revenues from BioMarin's marketed brands (excluding Aldurazyme) were up 5% year over year to $480.4 million on higher revenues from the new drug, Voxzogo, which offset lower sales of Kuvan and Naglazyme. Royalty and other revenues were $16.1 million in the quarter, up 7.4%.
Vimizim sales were up 1% year over year to $173.3 million, while Naglazyme sales declined 3% to $115.8 million. Vimizim and Naglazyme sales were lower than in the first quarter due to the volume of large irregular orders placed in the first quarter. Both Naglazyme and Vimizim experience uneven quarterly revenue patterns.
Brineura generated sales of $37.7 million in the quarter, up 24% year over year, driven by 18% year-over-year growth in commercial patients.
The new drug Voxzogo, approved last year in the United States and Europe to treat achondroplasia, generated sales worth $34.4 million in the second quarter compared with $19.7 million in the first quarter. Higher sales of Voxzogo were driven by new patients initiating therapy in Europe as well as the United States. As of Jun 30, an estimated 446 children were being treated with Voxzogo, of which 164 were from the United States and 282 from international markets. Voxzogo was approved in Japan and Australia in the quarter.
In the PKU franchise, Kuvan revenues declined 27% to $57.6 million due to generic competition as the drug lost U.S. market exclusivity in late 2020.
Palynziq injection sales grossed $61.6 million in the quarter, up 4% year over year. Sales were below management expectations. BioMarin expects Palynziq patient trends to grow at a slower pace than initial expectations. Palynziq sales continue to be hurt as PKU clinics particularly in the United States, to treat adult PKU patients with Palynziq, have not recovered their capacity lost due to the pandemic.
Product revenues from Aldurazyme totaled $37.3 million, up 33% due to the favorable timing of product fulfillment to Sanofi’s subsidiary Genzyme.
2022 Sales View Up Slightly
Despite ongoing economic challenges like currency fluctuations, BioMarin slightly raised its previously issued sales guidance for 2022 from a range of $2.05-$2.15 billion to $2.06-$2.16 billion, backed by the growth of Voxzogo.
BioMarin now expects to record Voxzogo sales in the range of $130-$160 million in 2022, up from the previous guidance of $100-$125 million, backed by robust demand for the drug in the United States and Europe.
Vimizim sales are expected in the range of $655-$700 million (previously $650-$700 million). Kuvan sales are anticipated in the range of $210-$235 million (previously $225-$250 million). Palynziq sales are expected in the range of $250-$275 million (previously $280-$310 million). Naglazyme sales are expected between $415 million and $450 million (previously $400 million and $440 million). Brineura sales are expected within $145-$160 million (maintained). BioMarin expects Roctavian to be a modest contributor to second-half revenues.
BioMarin maintained its adjusted net income guidance in the range of $350-$390 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -21.01% due to these changes.
VGM Scores
Currently, BioMarin has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, BioMarin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.