J.P. Morgan Reiterates Overweight Rating, $60 PT on BioMarin Pharmaceutical

In a report published Wednesday, J.P. Morgan & Co. reiterated its Overweight rating and $60.00 price target on BioMarin Pharmaceutical (NASDAQ: BMRN).J.P. Morgan noted, “BMRN remains one of our favorite mid-cap biotechs (as it was in 2012). In our view, the company has one of the more compelling combinations of tangible commercial value and pipeline optionality, and we anticipate the substantial de-risking that took place in 2012 will drive increased generalist interest in 2013. Last year was most notable for the positive top-line Phase 3 results for GALNS for Morquio Syndrome. We are very confident in FDA approval and believe this potentially transformative product could more than double the company's current ~$500M top line on its own. It's also worth noting that there is significant leverage from the Naglazyme global commercial infrastructure in terms of sales reps and also established relationships with physicians and payors. In 2012 we also got an encouraging update for PEG PAL for PKU, which is now heading into Phase 3 and has what we consider a high probability of success. Management also sounds excited about two other mid-stage programs (BMN-701 for Pompe, BMN-673 for cancer) also facing potential Go/No-Go decisions in 2013. Thus, it's conceivable that BMRN exits this coming year with a newly approved GALNS (brand name Vimizim) and 3 other candidates entering Phase 3. We believe this is a unique setup in biotech that has the company well positioned for both the short and long term.”BioMarin Pharmaceutical closed on Monday at $49.20