BioMarin Pharmaceutical Inc. (BMRN) reported fourth-quarter 2009 earnings of 13 cents per share (excluding special items), beating the Zacks Consensus Estimate of break-even earnings. The company had earned 8 cents (excluding special items) in the year-ago quarter.
Quarterly Results
Revenue for the reported quarter came in at $87.1 million as against $99.3 million in the comparable quarter last year, down 14%. Total net product revenues increased to $83.9 million from $65.9 million in the fourth quarter of 2008. Royalty and license revenues in the quarter came in at $2.8 million as against $1.8 million in the year-ago quarter. Revenue from collaborative agreements accounted for the remaining total revenue in the reported quarter.
Revenue from Naglazyme came in at $44.4 million in the reported quarter as against $36.5 million in the year-ago period, up 21.6%. Naglazyme (galsulfase) is an enzyme replacement therapy for treating mucopolysaccharidosis VI, a rare genetic enzyme deficiency disorder. Revenue from Aldurazyme, as recorded by Genzyme Corp. (GENZ) who sells the drug, an enzyme replacement therapy for treating mucopolysaccharidosis I, climbed 2.9% year-over-year to $38.7 million in the reported quarter.
Net product revenue for BioMarin from Aldurazyme came in at $16.8 million compared to $14.4 million for the fourth quarter of 2008, up 16.7%. Net product revenue from Kuvan tablets, for treating mild-to-moderate forms of the genetic disease phenylketonuria (PKU), rose to $22.7 million from $15.1 million in the year-ago period. Operating expenses for the quarter came in at $80.7 million compared to $67.2 million in the year-ago quarter.
Yearly Results
For full year 2009, BioMarin earned 46 cents per share (excluding special items) handsomely beating the Zacks Consensus Estimate of a loss of 5 cents. The company earned 29 cents (excluding special items) in 2008.
Full year revenues climbed to $324.6 million from $296.5 million in 2008. Total net product revenues in 2009 increased to $315.7 million from $251.9 million in 2008.
Naglazyme, Kuvan and Aldurazyme contributed 53.4%, 24.4% and 22.2% respectively to total net product revenues in 2009. Operating expenses in 2009 came in at $308.3 million compared to $256.7 million in 2008.
2010 Outlook
The company reaffirmed the guidance it had previously provided for 2010. BioMarin expects to end 2010 with a net income (excluding special items) between $39 million and $49 million. The Zacks Consensus Estimate for 2010 hints at earnings of 11 cents per share. Total revenues in 2010 are forecasted between $374 million and $405 million. Total net product revenues in 2010 are expected to range between $368 million and $398 million.
Our Recommendation
BioMarin currently has a Zacks Rank #3 (Hold), implying that the stock is expected to perform in line with the broader U.S. equity market over the next one to three months. This is supported by our Neutral recommendation on BioMarin.
The Neutral recommendation implies that the stock is expected to perform in line with the overall U.S. equity market over the next six to twelve months. Therefore, we advise investors to retain the stock over this time period.
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