BioMarin Pharmaceutical Inc.’s BMRN first-quarter 2015 loss (including stock-based compensation expense) of 30 cents per share was much narrower than the Zacks Consensus Estimate of a loss of 53 cents but wider than the year-ago loss of 12 cents per share.
Total revenues increased 34% to $203.3 million in the reported quarter, but were below the Zacks Consensus Estimate of $205 million. The year-over-year increase was mainly due to higher net product revenues.
The Quarter in Detail
Vimizim contributed $50.6 million to total revenues in the first quarter of 2015, up 37.1% sequentially.
Net product revenues from Kuvan increased 11% year over year to $50.2 million. Naglazyme sales in the quarter declined 2% year over year to $78.2 million. BioMarin receives royalties from its partner Sanofi SNY on Aldurazyme. Aldurazyme royalties (excluding transfer revenues) amounted to $22.3 million in the first quarter, up 1.8% year over year.
Firdapse revenues came in at $4.1 million, down 13% year over year.
Research and development (R&D) expenses increased 67.2% to $132.1 million during the quarter. Selling, general and administrative (SG&A) expenses increased 56.6% year over year to $81.4 million during the quarter.
BioMarin completed the acquisition of Prosensa earlier in the year. The acquisition added Duchenne muscular dystrophy candidate, drisapersen, to BioMarin’s portfolio apart from multiple orphan-drug candidates. In Apr 2015, BioMarin completed the rolling new drug application submission for drisapersen in the U.S. The EU application will be submitted this summer.
BioMarin said that it may turn to profitability on an adjusted basis by 2017 on the back of drisapersen.
2015 Outlook Updated
BioMarin now expects 2015 total revenues in the range of $850 million to $880 million (previous range: $840 million to $870 million). The Zacks Consensus Estimate for total revenues of $873 million is within the company’s updated guidance. The company also raised its Vimizim sales guidance to the range of $200 million to $220 million from the previous range of $170 million to $200 million.
BioMarin’s net loss guidance is however unchanged in the $130 –$170 million range. Naglazyme revenue guidance is also maintained in the range of $315 million to 340 million. The company still expects Kuvan net product sales in the range of $210 million to $230 million.
SG&A and R&D expenditure guidance is also maintained in the range of $360 million to $395 million and $610 million to $640 million respectively.
Our Take
We are pleased with the company’s bottom-line results with losses coming in narrower than expected. Vimizim sales were impressive during the quarter. Sales of the drug should increase further in 2015, as reimbursement in additional EU countries pick up.
Drisapersen regulatory decision is the next big event for BioMarin. The company expects multiple pipeline related news with a number of data readouts lined up for the rest of the year. We expect investor focus to remain on pipeline updates from the company.
BioMarin carries a Zacks Rank #2 (Buy). Some other well-ranked stocks in the health care sector include Actelion Ltd. ALIOF and Biogen Inc. BIIB, both carrying a Zacks Rank #1 (Strong Buy).
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