BioMarin Pharmaceutical Upgraded to Buy at Deutsche Bank
Wednesday, September 28, 2021 1:40 PM



Analysts at Deutsche Bank upgraded the shares rating of BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) to Buy from Hold, with a revised price target of $40. They state that the upgrade was primarily based on a promising pipeline of enzyme replacement therapies for orphan diseases.

 

DB analysts state that any emerging products are BioMarin’s area of expertise as it allows the latter to leverage its global infrastructure. They state that the company’s management has provided data that increases their confidence on the firm’s enzyme replacement therapies GALNS and PEG-PAL. They add that for GALNS, phase-2 extension study data showed that benefit in 6MWT, the primary endpoint for phase-3 trial, was sustained for less than one year. They state that for PEG-PAL, the drug has shown strong Phe reduction and they believe the optimal dose for phase-3 has been identified. They increased their probability of success of GALNS from 85 percent to 100 percent, and for PEG-PAL from 55 percent to 75 percent. They state that the company’s current Genzyme’s Lumizyme has shown poor response in skeletal tissue and does not work in some patients because of poor uptake. They add that they now assign 25 percent probability of success to BMN701 to peak sales of $686 million. They state that if pipeline emerges, there is significant physician overlap for sales force, and hence the same sales representative can market multiple products.

 

On a year-to-date basis, BioMarin has a share performance of 14.70 percent, and as compared to Standard & Poor’s 500, it has an YTD share performance of 26.94 percent.

 

BioMarin Pharmaceutical develops and commercializes biopharmaceuticals for serious diseases and medical conditions. It has a market capitalization of $3.45 billion with a P/E ratio of -0.010. It has more than 111 million outstanding shares.

 

Shares of BioMarin added 6.75 percent or $2.08 to trade at $32.91.

 

 


 

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