BioMarin Pharmaceutical Inc.’s (BMRN) first quarter 2011 loss of $0.04 per share was narrower than the Zacks Consensus loss estimate of $0.10 per share. The narrower-than-expected loss was attributable to higher-than-expected revenues recorded by BioMarin in the first quarter of 2011. The company reported break-even earnings (on an adjusted basis) in the year-ago quarter.
Total revenues climbed approximately 28.9% to $109.5 million in the reported quarter. Revenues surpassed the Zacks Consensus Estimate of $104 million. Revenues were boosted by higher sales of the key products at BioMarin.
Net product revenues in the reported quarter climbed approximately 29.7% to $109.1 million. Naglazyme, approved for treating MPS-VI, a rare genetic enzyme deficiency disorder, contributed the bulk of the net product revenues recorded in the quarter. Revenues from the drug climbed 24.7% to $60.6 million. Naglazyme revenues were boosted by the receipt of an order from the Brazilian government in the quarter.
Net product revenues from Kuvan tablets, indicated for treating mild-to-moderate forms of phenylketonuria (PKU), grew 25.9% to $26.7 million. The increase was attributable to the higher demand for commercial tablets in the US. Revenues for BioMarin from another enzyme replacement therapy, Aldurazyme, increased 31.7% over the prior-year quarter to $18.7 million. BioMarin co-markets the drug with Sanofi-Aventis (SNY).
In addition to the above-mentioned products, BioMarin possesses the rights to Firdapse through its acquisition of Huxley Pharmaceuticals in October 2009. Net revenues from Firdapse, currently marketed in Europe, were $3.1 million in the quarter. Firdapse was launched in April 2010, in the European Union, for treating patients suffering from Lambert Eaton Myasthenic Syndrome (LEMS) – a rare autoimmune disorder.
2011 Guidance
Apart from announcing financial results, BioMarin also provided guidance for 2011. The lower ends of the guidance range for total revenue and net product revenue have been raised. Total revenues are expected in the range of $422 million-$452 million (old guidance $417 million-$452 million). Net product revenues are expected in the range of $416 million- $446 million (old guidance $411 million-$446 million).
Revenue guidance for the marketed products at BioMarin is as follows: Naglazyme – $211 million-$225 million (old guidance $206-$225 million); Kuvan – $112-$120 million (unchanged); Aldurazyme – $79–$83 million (unchanged); and Firdapse – $14-$18 million (unchanged). The outlook for selling, general and administrative expenses and research & development expense remained unchanged at $164-$174 million and $195-$205 million respectively.
Our Recommendation
Currently, the company carries a Zacks #3 Rank (Hold rating) in the short-run. However, we have an Underperform rating on BioMarin in the long-run.
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