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How BioMarin Turned a Competitive Threat Into a Royalty-Bearing Asset
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Key Takeaways
BioMarin will receive royalties on Yuviwel sales, turning a patent dispute into a royalty stream.
BMRN gets 20% U.S. royalties and 18% in the EU, Brazil and South Korea through May 2030.
Yuviwel reached 8 million euros in second-quarter revenue and enrolled more than 220 patients by July 31.
For BioMarin Pharmaceutical (BMRN - Free Report) , the FDA approval of Ascendis Pharma’s (ASND - Free Report) Yuviwel in February had created a problem — a new entrant targeting the same achondroplasia market as Voxzogo, its key revenue driver. But a recent settlement between the two companies has changed the economics of that competition in a meaningful way.
Rather than continue fighting a competitor that had already entered the market, BioMarin has found a way to make the competitor pay it. Under the settlement, Ascendis will pay BioMarin royalties on Yuviwel sales in the United States, European Union, Brazil and South Korea, effectively giving BMRN an economic interest in a drug that could otherwise take share from Voxzogo.
BMRN Turns a Patent Dispute Into a Royalty Stream
When Voxzogo secured FDA approval in 2021, it became the first FDA-approved therapy for achondroplasia, the most common form of dwarfism. The drug is a C-type natriuretic peptide (CNP) analog administered once daily as a subcutaneous injection. CNP is a naturally occurring signaling molecule involved in bone growth.
When Ascendis launched Yuviwel in April, its entry was a significant challenge for BioMarin, as Voxzogo had previously been the only approved treatment for achondroplasia. Like Voxzogo, Yuviwel is also a CNP therapy but is administered once weekly. The ASND drug is designed to provide continuous exposure to active CNP, potentially offering a more convenient dosing profile than the BMRN drug.
BioMarin had alleged that Yuviwel infringed its intellectual property covering CNP technology, triggering patent disputes across the United States, Brazil, Denmark, Germany and South Korea, including before the U.S. International Trade Commission. But instead of continuing to fight, both companies have settled their disputes with a licensing deal.
Per the settlement terms, BioMarin will grant Ascendis a non-exclusive, worldwide license to certain patents covering Yuviwel and related products, allowing Ascendis to research, develop, manufacture and commercialize the drug across current and potential indications.
In return, Ascendis will pay BioMarin royalties equal to 20% of annual net sales in the United States and 18% in the European Union, Brazil and South Korea, from the first commercial sale in each territory through May 20, 2030. The U.S. royalty is also applied retroactively to Yuviwel's first commercial sale. All pending lawsuits between the two companies will also be dismissed.
Competitive Threat for BMRN Still Remains
The settlement changes the competitive equation for BioMarin. Previously, every dollar of Yuviwel sales represented a potential dollar of revenue at risk for Voxzogo. Under the new agreement, Yuviwel sales can also generate revenues for BioMarin through royalties. This means that while greater adoption of Yuviwel could still put pressure on Voxzogo, BMRN will now participate in the growth of its competitor.
The opportunity is becoming more meaningful as Yuviwel gains traction. Ascendis generated €8 million in Yuviwel revenues in the second quarter of 2026, its first quarter of launch, and had enrolled more than 220 patients through July 31. More than 100 healthcare providers had prescribed the drug, with more than 65% of enrollments approved for reimbursement. Ascendis is also preparing for further expansion, with its EU filings under review and additional studies underway.
Still, the settlement does not eliminate the competitive risk for BioMarin. Royalties are only a partial offset to any erosion in Voxzogo sales, and the economics will ultimately depend on how quickly Yuviwel penetrates the market and how much of that growth comes at Voxzogo’s expense.
BioMarin’s Voxzogo could have another potential competitor by this time next year. Recently, BridgeBio Pharma (BBIO - Free Report) has submitted a regulatory filing with the FDA for infigratinib, an FGFR3 inhibitor that could become the first approved oral therapy for achondroplasia. The company expects a U.S. launch in mid-2027, subject to approval.
The arrival of another potentially differentiated therapy underscores that BioMarin’s competitive challenge is unlikely to end with Yuviwel. The company may have found a clever way to monetize one threat, but it will still need to defend Voxzogo as the achondroplasia market becomes increasingly competitive.
BMRN’s Price Performance, Valuation & Estimates
Shares of BioMarin have risen 13% year to date, significantly outperforming the industry’s 11% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, the company is currently trading at a premium to the industry. Based on the price-to-sales (P/S) ratio, the stock trades at 3.06 times forward 12-month sales per share, higher than the industry average of 1.94 times.
Image Source: Zacks Investment Research
Movements in EPS estimates for 2026 and 2027 have been mixed over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
How BioMarin Turned a Competitive Threat Into a Royalty-Bearing Asset
Key Takeaways
For BioMarin Pharmaceutical (BMRN - Free Report) , the FDA approval of Ascendis Pharma’s (ASND - Free Report) Yuviwel in February had created a problem — a new entrant targeting the same achondroplasia market as Voxzogo, its key revenue driver. But a recent settlement between the two companies has changed the economics of that competition in a meaningful way.
Rather than continue fighting a competitor that had already entered the market, BioMarin has found a way to make the competitor pay it. Under the settlement, Ascendis will pay BioMarin royalties on Yuviwel sales in the United States, European Union, Brazil and South Korea, effectively giving BMRN an economic interest in a drug that could otherwise take share from Voxzogo.
BMRN Turns a Patent Dispute Into a Royalty Stream
When Voxzogo secured FDA approval in 2021, it became the first FDA-approved therapy for achondroplasia, the most common form of dwarfism. The drug is a C-type natriuretic peptide (CNP) analog administered once daily as a subcutaneous injection. CNP is a naturally occurring signaling molecule involved in bone growth.
When Ascendis launched Yuviwel in April, its entry was a significant challenge for BioMarin, as Voxzogo had previously been the only approved treatment for achondroplasia. Like Voxzogo, Yuviwel is also a CNP therapy but is administered once weekly. The ASND drug is designed to provide continuous exposure to active CNP, potentially offering a more convenient dosing profile than the BMRN drug.
BioMarin had alleged that Yuviwel infringed its intellectual property covering CNP technology, triggering patent disputes across the United States, Brazil, Denmark, Germany and South Korea, including before the U.S. International Trade Commission. But instead of continuing to fight, both companies have settled their disputes with a licensing deal.
Per the settlement terms, BioMarin will grant Ascendis a non-exclusive, worldwide license to certain patents covering Yuviwel and related products, allowing Ascendis to research, develop, manufacture and commercialize the drug across current and potential indications.
In return, Ascendis will pay BioMarin royalties equal to 20% of annual net sales in the United States and 18% in the European Union, Brazil and South Korea, from the first commercial sale in each territory through May 20, 2030. The U.S. royalty is also applied retroactively to Yuviwel's first commercial sale. All pending lawsuits between the two companies will also be dismissed.
Competitive Threat for BMRN Still Remains
The settlement changes the competitive equation for BioMarin. Previously, every dollar of Yuviwel sales represented a potential dollar of revenue at risk for Voxzogo. Under the new agreement, Yuviwel sales can also generate revenues for BioMarin through royalties. This means that while greater adoption of Yuviwel could still put pressure on Voxzogo, BMRN will now participate in the growth of its competitor.
The opportunity is becoming more meaningful as Yuviwel gains traction. Ascendis generated €8 million in Yuviwel revenues in the second quarter of 2026, its first quarter of launch, and had enrolled more than 220 patients through July 31. More than 100 healthcare providers had prescribed the drug, with more than 65% of enrollments approved for reimbursement. Ascendis is also preparing for further expansion, with its EU filings under review and additional studies underway.
Still, the settlement does not eliminate the competitive risk for BioMarin. Royalties are only a partial offset to any erosion in Voxzogo sales, and the economics will ultimately depend on how quickly Yuviwel penetrates the market and how much of that growth comes at Voxzogo’s expense.
BioMarin’s Voxzogo could have another potential competitor by this time next year. Recently, BridgeBio Pharma (BBIO - Free Report) has submitted a regulatory filing with the FDA for infigratinib, an FGFR3 inhibitor that could become the first approved oral therapy for achondroplasia. The company expects a U.S. launch in mid-2027, subject to approval.
The arrival of another potentially differentiated therapy underscores that BioMarin’s competitive challenge is unlikely to end with Yuviwel. The company may have found a clever way to monetize one threat, but it will still need to defend Voxzogo as the achondroplasia market becomes increasingly competitive.
BMRN’s Price Performance, Valuation & Estimates
Shares of BioMarin have risen 13% year to date, significantly outperforming the industry’s 11% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, the company is currently trading at a premium to the industry. Based on the price-to-sales (P/S) ratio, the stock trades at 3.06 times forward 12-month sales per share, higher than the industry average of 1.94 times.
Image Source: Zacks Investment Research
Movements in EPS estimates for 2026 and 2027 have been mixed over the past 30 days.
Image Source: Zacks Investment Research
BioMarin currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.