BioMarin Pharmaceutical Inc.’s (BMRN) fourth-quarter 2014 loss (including stock-based compensation expense) of 30 cents per share was much narrower than the Zacks Consensus Estimate of a loss of 59 cents but wider than the year-ago loss of 27 cents per share.
Total revenues increased 57.2% to $230.9 million in the reported quarter, beating the Zacks Consensus Estimate of $191 million. The increase was mainly due to higher net product revenues.
BioMarin’s full-year loss (including stock-based compensation expense) of 77 cents per share was a penny wider than the year-ago loss of 76 cents per share but much narrower than the Zacks Consensus Estimate of a loss of $1.06.
Full year 2014 revenues also increased 37% to $751 million, beating the Zacks Consensus Estimate of $711 million.
The Quarter in Detail
Vimizim contributed $36.9 million to total revenues in the fourth quarter of 2014, up 46.4% sequentially.
Net product revenues from Kuvan increased 26.7% year over year to $57.4 million. Naglazyme sales in the quarter increased 28.8% year over year to $88.5 million. The company attributed higher Naglazyme revenues to a large government order from Latin America.
BioMarin receives royalties from its partner Sanofi (SNY) on Aldurazyme. Aldurazyme royalties (excluding transfer revenues) amounted to $27.9 million in the fourth quarter, up 1.5% year over year.
Firdapse revenues came in at $4.1 million, down 4.7% year over year.
Research and development (R&D) expenses increased 46% year over year to $142.1 million. Selling, general and administrative (SG&A) expenses increased 39% year over year to $99.8 million during the quarter.
BioMarin completed the acquisition of Prosensa last month. The acquisition added Duchenne muscular dystrophy candidate, drisapersen, to BioMarin’s portfolio apart from multiple orphan-drug candidates. BioMarin expects to complete the rolling new drug application for drisapersen in the U.S. in Apr 2015. The EU application will be submitted shortly.
2015 Outlook
BioMarin expects total revenues in the range of $840 million to $870 million. The Zacks Consensus Estimate for total revenues currently stands at $879 million.
BioMarin projects net loss in the $130 –$170 million range. The company expects its net loss to widen assuming regulatory expenses associated with drisapersen and pipeline progress.
Naglazyme revenues are expected in the range of $315 million to $340 million. The company expects Kuvan net product sales in the range of $210 million to $230 million. The company projects 2015 Vimizim sales in the range of $170 million to $200 million.
SG&A spend is expected in the range of $360 million to $395 million. The guidance includes costs associated with the marketing of Vimizim, servicing of patients on Vimizim, Naglazyme and Kuvan, sales activity in anticipation of the potential launch of drisapersen and the integration of Prosensa.
R&D spend is expected in the range of $610 million to $640 million, up from $461.5 million in 2014, including the integration of drisapersen and Prosensa.
Our Take
We are pleased with the company’s top- and bottom-line results with revenues beating the estimates and losses coming in narrower than expected. With Vimizim already off to a strong start, sales should increase further in 2015, as reimbursement in additional EU countries pick up.
BioMarin expects multiple pipeline related news with multiple 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 #1 (Strong Buy). Some equally well-ranked stocks in the health care sector include Theravance Inc. (THRX) and Prothena Corporation plc (PRTA).
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