BioMarin Pharmaceutical Inc

BMRN Details

BioMarin Pharmaceutical Inc. (BioMarin) (NASDAQ: BMRN) is a biotechnology company that develops and commercializes therapies that address the root cause of genetic conditions. The Company's portfolio consists of seven commercial products and multiple clinical and preclinical product candidates for the treatment of various diseases.

Financial Results

• BMRN posted total revenues for Q2 FY 2023 of $595.3 Mn, exhibiting a rise of 12% as compared to the same period in 2022.
• GAAP and Non-GAAP Net Income rose $28.3 Mn and $28.4 Mn, respectively for Q2 FY 2023 as compared to the same period in 2022. The higher net income was mainly because of increased gross profit and interest income, partially offset by the higher spend in R&D programs in order to support early-stage research as well as clinical activities, and higher selling, general and administrative expenses because of higher foreign currency losses and to support the commercial launches of VOXZOGO and ROCTAVIAN.

Outlook

For FY 2023, the company is expecting total revenues of $2,375 Mn- $2,500 Mn and enzyme product revenues of between $1,700 Mn- $1,850 Mn. Its gross profit is expected to be between 77.5%- 79% and GAAP net income is expected to be between $155 Mn - $205 Mn.

Key Risks

Weak global growth, Inflation, etc. are some of the risks BMRN is exposed to.

EV/Sales Relative Valuation (Illustrative)

Stock Recommendation

Considering the resistance around the range, current trading levels, risks associated, and volatile market conditions on the back of rising interest rates, a ‘Sell’ rating is assigned to the “BMRN” at the current market price of USD 94.60 (as of 30 August 2023, at 07:15 am PDT).  

Technical Overview:

Daily Price Chart

BMRN is a part of Global Big Money Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

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