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Why Is BioMarin (BMRN) Up 14.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have added about 14.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is BioMarin due for a pullback? 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 catalysts.
Q3 Earnings in Line, Sales Miss
BioMarin reported third-quarter 2023 adjusted earnings per share of 46 cents, in line with the Zacks Consensus Estimate. The reported earnings rose 70% year over year, driven by an increase in revenues and lower tax expenses that offset the impact of rising operating expenses.
Total revenues were $581.3 million in the reported quarter, up 15% year over year. The upside was driven by the global uptake of Voxzogo and higher Palynziq revenues. The top line missed the Zacks Consensus Estimate of $603.5 million.
Quarter in Detail
Product revenues (including Aldurazyme) totaled $568.3 million, up 15% year over year. The same from BioMarin's marketed brands (excluding Aldurazyme) increased 19% year over year to $554.5 million on higher revenues from Voxzogo. This offset lower sales from Kuvan. Royalty and other revenues totaled $13.1 million, up 9% year-over-year.
Voxzogo generated sales of $123.1 million compared with $113.3 million in the previous quarter. Higher sales of Voxzogo were driven by continued global market expansion and rapid patient uptake across all regions.
Despite supply constraints limiting sales growth, Voxzogo continues to perform above expectations. The drug’s sales beat the Zacks Consensus Estimate and our model estimates of $115 million and $111 million, respectively. Management expects to overcome these constraints by mid-2024.
Palynziq injection sales grossed $78.9 million in the quarter, up 19% year over year, driven by patients initiating therapy, particularly in the United States. The drug’s sales beat both the Zacks Consensus Estimate of $77.5 million and our model estimates of $78.4 million.
Vimizim sales rose 2% year over year to $158.9 million. However, the drug’s sales fell short of the Zacks Consensus Estimate of $168.4 million and our model estimates of $169.3 million.
Naglazyme sales rose 9% year-over-year to $108.9 million, while Brineura generated sales of $41 million, up 8% over the year-ago quarter.
The recently approved Roctavian generated $0.8 million in sales in the first quarter of its commercial launch.
In the PKU franchise, Kuvan revenues declined 25% to $42.9 million due to generic competition. The drug lost U.S. market exclusivity in late 2020.
Product revenues from Aldurazyme totaled $13.8 million, down 52% from that recorded in the prior-year quarter. The downside was due to the unfavorable timing of order fulfillment to Sanofi.
2023 Guidance
BioMarin has been facing global delays in securing pricing and reimbursement for Roctavian. Management now expects to record less than $10 million from the gene therapy’s sales in 2023 compared with the previously issued guidance of $50-$150 million.
The total revenues are now projected to be $2.39-$2.47 billion, down from the previous guidance of $2.38-$2.5 billion. This includes a raised Voxzogo sales guidance of $435-$455 million (previously $400-$440 million) on the back of robust demand.
Revenues from enzyme products (which include Aldurazyme, Brineura, Naglazyme, Palynziq and Vimizim) are expected in the range of $1.70-$1.78 billion, down from the previously issued guidance of $1.70-$1.85 billion.
Earnings per share are projected to be $1.90-$2.05 (previous guidance: $1.85-$2.10).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -12.65% due to these changes.
VGM Scores
At this time, BioMarin has a nice Growth Score of B, 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.
Performance of an Industry Player
BioMarin belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Amgen (AMGN - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Amgen reported revenues of $6.9 billion in the last reported quarter, representing a year-over-year change of +3.8%. EPS of $4.96 for the same period compares with $4.70 a year ago.
Amgen is expected to post earnings of $4.67 per share for the current quarter, representing a year-over-year change of +14.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
Amgen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is BioMarin (BMRN) Up 14.3% Since Last Earnings Report?
It has been about a month since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have added about 14.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is BioMarin due for a pullback? 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 catalysts.
Q3 Earnings in Line, Sales Miss
BioMarin reported third-quarter 2023 adjusted earnings per share of 46 cents, in line with the Zacks Consensus Estimate. The reported earnings rose 70% year over year, driven by an increase in revenues and lower tax expenses that offset the impact of rising operating expenses.
Total revenues were $581.3 million in the reported quarter, up 15% year over year. The upside was driven by the global uptake of Voxzogo and higher Palynziq revenues. The top line missed the Zacks Consensus Estimate of $603.5 million.
Quarter in Detail
Product revenues (including Aldurazyme) totaled $568.3 million, up 15% year over year. The same from BioMarin's marketed brands (excluding Aldurazyme) increased 19% year over year to $554.5 million on higher revenues from Voxzogo. This offset lower sales from Kuvan. Royalty and other revenues totaled $13.1 million, up 9% year-over-year.
Voxzogo generated sales of $123.1 million compared with $113.3 million in the previous quarter. Higher sales of Voxzogo were driven by continued global market expansion and rapid patient uptake across all regions.
Despite supply constraints limiting sales growth, Voxzogo continues to perform above expectations. The drug’s sales beat the Zacks Consensus Estimate and our model estimates of $115 million and $111 million, respectively. Management expects to overcome these constraints by mid-2024.
Palynziq injection sales grossed $78.9 million in the quarter, up 19% year over year, driven by patients initiating therapy, particularly in the United States. The drug’s sales beat both the Zacks Consensus Estimate of $77.5 million and our model estimates of $78.4 million.
Vimizim sales rose 2% year over year to $158.9 million. However, the drug’s sales fell short of the Zacks Consensus Estimate of $168.4 million and our model estimates of $169.3 million.
Naglazyme sales rose 9% year-over-year to $108.9 million, while Brineura generated sales of $41 million, up 8% over the year-ago quarter.
The recently approved Roctavian generated $0.8 million in sales in the first quarter of its commercial launch.
In the PKU franchise, Kuvan revenues declined 25% to $42.9 million due to generic competition. The drug lost U.S. market exclusivity in late 2020.
Product revenues from Aldurazyme totaled $13.8 million, down 52% from that recorded in the prior-year quarter. The downside was due to the unfavorable timing of order fulfillment to Sanofi.
2023 Guidance
BioMarin has been facing global delays in securing pricing and reimbursement for Roctavian. Management now expects to record less than $10 million from the gene therapy’s sales in 2023 compared with the previously issued guidance of $50-$150 million.
The total revenues are now projected to be $2.39-$2.47 billion, down from the previous guidance of $2.38-$2.5 billion. This includes a raised Voxzogo sales guidance of $435-$455 million (previously $400-$440 million) on the back of robust demand.
Revenues from enzyme products (which include Aldurazyme, Brineura, Naglazyme, Palynziq and Vimizim) are expected in the range of $1.70-$1.78 billion, down from the previously issued guidance of $1.70-$1.85 billion.
Earnings per share are projected to be $1.90-$2.05 (previous guidance: $1.85-$2.10).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -12.65% due to these changes.
VGM Scores
At this time, BioMarin has a nice Growth Score of B, 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.
Performance of an Industry Player
BioMarin belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Amgen (AMGN - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Amgen reported revenues of $6.9 billion in the last reported quarter, representing a year-over-year change of +3.8%. EPS of $4.96 for the same period compares with $4.70 a year ago.
Amgen is expected to post earnings of $4.67 per share for the current quarter, representing a year-over-year change of +14.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
Amgen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.