BMRN Acquires ZyStor Therapeutics
Analysts at Piper Jaffray reiterate their "neutral" rating on BioMarin Pharmaceutical (NASDAQ: BMRN), while reducing their estimates for the company. The target price for BMRN is set to $22.
According to Piper Jaffray, “BioMarin will acquire privately-held ZyStor Therapeutics and its preclinical ERT (Pompe disease) for an upfront payment of $22mn. This acquisition is in-line with BMRN's strategy of acquiring early stage assets for development as highlighted by the February acquisition of LEAD Therapeutics.”
“Though we believe that this strategy should prove accretive in the long-term, we are not expecting a significant impact on shares from today's acquisition until Phase II data is available in late-2012 or early-2013.…We expect investors to also remain focused on implications of a Genzyme acquisition, with a change-in-control provision potentially allowing BMRN to regain rights to Aldurazyme; a deal that could be highly accretive,” the analysts add.
Piper Jaffray has lowered its EPS estimates for FY10 and FY11 from $0.23 to $0.19 and from $0.48 to $0.40, respectively.
