Zacks_Analysts' Blog : BioMarin Upped to Neutral - Analyst Blog

We recently upgraded  BioMarin Pharmaceutical Inc. (BMRN) to ‘Neutral’ from ‘Underperform’ owing to the impressive sales of the company’s key products and diversified pipeline.

Even though BioMarin suffered a wider loss in the third quarter of 2011, which was because of higher operating expenses, the key products of the company, namely Naglazyme and Kuvan, continued to perform well. Total revenues climbed 16% to $113.4 million in the third quarter of 2011.

Expecting the trend to continue, BioMarin raised the lower end of 2011 revenue guidance range to $439 - $465 million from $436 - $465 million. We too expect Naglazyme and Kuvan to continue performing impressively in the coming quarters. Our 2011 revenue estimate is well within the company’s revised guidance range.

The marketed products at BioMarin are Aldurazyme (co-marketed with Sanofi-Aventis (SNY)), Naglazyme, Kuvan and Firdapse. Aldurazyme was approved in the US in 2003 for the treatment of MPS-I (mucopolysaccharidosis). Naglazyme was approved by the US Food and Drug Administration (FDA) in 2005, the European Medicines Agency (EMEA) in 2006 and the Japanese regulatory body in 2008. The drug is marketed for treating MPS-VI, a rare genetic enzyme deficiency disorder. Kuvan was approved in the US in 2007 for phenylketonuria (PKU). Firdapse, added to BioMarin’s portfolio through the October 2009 acquisition of Huxley Pharmaceuticals, was launched in the EU in April 2010 for treating patients suffering from Lambert Eaton Myasthenic Syndrome (LEMS) - a rare autoimmune disorder.

Moreover, we are pleased by the company’s efforts to develop its pipeline with multiple pipeline events lined up. Positive updates on the pipeline at the upcoming research and development (R&D) day would boost the stock.

These catalysts have caused us to upgrade the stock to ‘Neutral’.