We are upgrading BioMarin Pharmaceutical Inc. (BMRN) to Neutral from Underperform following its better-than-expected performance in the first quarter of 2011.
BioMarin, founded in 1996 and headquartered in Novato, California, develops and commercializes biopharmaceuticals for serious diseases and medical conditions. The company's product portfolio comprises four approved products and multiple pipeline candidates. The marketed products are Aldurazyme, Naglazyme, Kuvan and Firdapse.
The company suffered a loss of $0.04 per share in the first quarter of 2011 which was narrower than the Zacks Consensus loss estimate of $0.10 per share. The narrower loss was attributable to higher revenues. Strong sales of the key products at BioMarin boosted revenues by 28.9% to $109.5 million in the first quarter of 2011.
Naglazyme, marketed for the treatment of MPS-VI, a rare genetic enzyme deficiency disorder, was the largest contributor to revenues. Revenues from the drug climbed 24.7% to $60.6 million. Naglazyme revenues were boosted by the receipt of an order from the Brazilian government in the quarter.
Net product revenues from Kuvan tablets, indicated for treating mild-to-moderate forms of phenylketonuria, grew 25.9% to $26.7 million. The increase was attributable to the higher demand for commercial tablets in the US. Revenues from another enzyme replacement therapy, Aldurazyme, increased 31.7% over the prior-year quarter to $18.7 million. BioMarin co-markets Aldurazyme with Sanofi-Aventis (SNY).
Moreover, BioMarin has a robust pipeline with multiple events lined up for the near future. The successful development and commercialization of the robust pipeline would help drive long-term growth at BioMarin. These positive factors have caused us to trim our 2011 loss estimate and upgrade the stock to Neutral.
BIOMARIN PHARMA (BMRN): Free Stock Analysis Report
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