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BioMarin Pharmaceutical Inc. (BMRN - Free Report) reported a loss of 11 cents per share in the second quarter of 2016 (including stock-based compensation expense), substantially narrower than the Zacks Consensus Estimate of a loss of 50 cents. The reported figure was also narrower than the year-ago loss of 22 cents.
The company’s revenues came in at $300.1 million in the quarter, up 20% from the year-ago quarter, driven by strong sales of Vimizim and Kuvan. Revenues also came in above the Zacks Consensus Estimate of $280.5 million.
Vimizim and Kuvan Drive Revenues
Vimizim contributed $106.8 million to the total revenue, shot up 98.1% year over year, primarily driven by robust patient growth and in part by the timing of large orders from Latin America and the Middle East.
Kuvan revenues soared 50.1% to $90.2 million driven by patient increases in North America and strong sales in international territories.
Naglazyme sales plunged 29.4% year over year to $78.4 million primarily due to the timing of central government orders from Latin America in 2015.
BioMarin received Aldurazyme royalties – totalling $18.7 million (down 7.4%) – from Sanofi’s (SNY - Free Report) Genzyme.
Meanwhile, Firdapse revenues increased 21.6% year over year to $4.5 million.
Research and development (R&D) expenses increased 5.8% to $167 million while selling, general and administrative (SG&A) expenses were up 7.9 % to $109.6 million.
2016 Revenue Outlook Upped
Encouraged by the strong performance of Vimizim and Kuvan, BioMarin raised its total revenue outlook for 2016. The company now expects total revenue in the range of $1.10 billion to $1.15 billion (old guidance: $1.05 billion to $1.10 billion).
While Vimizim sales are now expected in the range of $340–$360 million (old guidance: $315–$340 million), Kuvan sales are now projected in the range of $340 million to $360 million (old guidance: $320 million to $350 million).
The company maintained its previous projections of Naglazyme sales in the range of $290 million and $320 million.
R&D expenses are now expected in the $670–$690 million range (old guidance: $680–$720 million) while SG&A expenses are still projected at the previously guided range of $470–$490.
The company now expects loss in the range of $30 million to $50 million (old guidance: loss in the range of $75 million to $100 million) due to continued strong top-line growth and operating expense discipline.
Pipeline Update
BioMarin continues to progress with its pipeline candidates. BioMarin plans to initiate a phase III study on vosoritide in children with achondroplasia by year end.
Brineura (formerly known as cerliponase alfa) is under priority review in the U.S. with a response expected by Jan 27, 2017. The company is looking to get Brineura approved for the treatment of children with CLN2 disease, a form of batten disease. The company has also submitted a regulatory application for the candidate in the EU.
Meanwhile, the company plans to seek FDA approval for pegvaliase for the treatment of phenylketonuria in the fourth quarter of 2016 or the first quarter of 2017.
Our Take
BioMarin’s second-quarter performance was impressive, with the company reporting a narrower-than-expected loss and revenues surpassing expectations. Vimizim and Kuvan drove top-line growth, which is encouraging. The company’s raised outlook for revenues for 2016 is also encouraging. The geographical expansion of Vimizim and growth in the number of patients on Kuvan should boost BioMarin’s performance. BioMarin expects to achieve break-even or better results in 2017. Meanwhile, the company has several pipeline updates and data readouts lined up for the upcoming quarters, which could act as catalysts.
BioMarin carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Geron Corporation (GERN - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
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BioMarin (BMRN) Posts Narrower Q2 Loss, Sales View Upped
BioMarin Pharmaceutical Inc. (BMRN - Free Report) reported a loss of 11 cents per share in the second quarter of 2016 (including stock-based compensation expense), substantially narrower than the Zacks Consensus Estimate of a loss of 50 cents. The reported figure was also narrower than the year-ago loss of 22 cents.
The company’s revenues came in at $300.1 million in the quarter, up 20% from the year-ago quarter, driven by strong sales of Vimizim and Kuvan. Revenues also came in above the Zacks Consensus Estimate of $280.5 million.
Vimizim and Kuvan Drive Revenues
Vimizim contributed $106.8 million to the total revenue, shot up 98.1% year over year, primarily driven by robust patient growth and in part by the timing of large orders from Latin America and the Middle East.
Kuvan revenues soared 50.1% to $90.2 million driven by patient increases in North America and strong sales in international territories.
Naglazyme sales plunged 29.4% year over year to $78.4 million primarily due to the timing of central government orders from Latin America in 2015.
BioMarin received Aldurazyme royalties – totalling $18.7 million (down 7.4%) – from Sanofi’s (SNY - Free Report) Genzyme.
Meanwhile, Firdapse revenues increased 21.6% year over year to $4.5 million.
Research and development (R&D) expenses increased 5.8% to $167 million while selling, general and administrative (SG&A) expenses were up 7.9 % to $109.6 million.
2016 Revenue Outlook Upped
Encouraged by the strong performance of Vimizim and Kuvan, BioMarin raised its total revenue outlook for 2016. The company now expects total revenue in the range of $1.10 billion to $1.15 billion (old guidance: $1.05 billion to $1.10 billion).
While Vimizim sales are now expected in the range of $340–$360 million (old guidance: $315–$340 million), Kuvan sales are now projected in the range of $340 million to $360 million (old guidance: $320 million to $350 million).
The company maintained its previous projections of Naglazyme sales in the range of $290 million and $320 million.
R&D expenses are now expected in the $670–$690 million range (old guidance: $680–$720 million) while SG&A expenses are still projected at the previously guided range of $470–$490.
The company now expects loss in the range of $30 million to $50 million (old guidance: loss in the range of $75 million to $100 million) due to continued strong top-line growth and operating expense discipline.
Pipeline Update
BioMarin continues to progress with its pipeline candidates. BioMarin plans to initiate a phase III study on vosoritide in children with achondroplasia by year end.
Brineura (formerly known as cerliponase alfa) is under priority review in the U.S. with a response expected by Jan 27, 2017. The company is looking to get Brineura approved for the treatment of children with CLN2 disease, a form of batten disease. The company has also submitted a regulatory application for the candidate in the EU.
Meanwhile, the company plans to seek FDA approval for pegvaliase for the treatment of phenylketonuria in the fourth quarter of 2016 or the first quarter of 2017.
Our Take
BioMarin’s second-quarter performance was impressive, with the company reporting a narrower-than-expected loss and revenues surpassing expectations. Vimizim and Kuvan drove top-line growth, which is encouraging. The company’s raised outlook for revenues for 2016 is also encouraging. The geographical expansion of Vimizim and growth in the number of patients on Kuvan should boost BioMarin’s performance. BioMarin expects to achieve break-even or better results in 2017. Meanwhile, the company has several pipeline updates and data readouts lined up for the upcoming quarters, which could act as catalysts.
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BioMarin carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector are Geron Corporation (GERN - Free Report) and Anika Therapeutics Inc. (ANIK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>