UPDATE: Credit Suisse Initiates BioMarin Pharmaceutical at Neutral on Revenue Growth Forecast

In a report published Friday, Credit Suisse analyst Lee Kalowski initiated coverage on BioMarin Pharmaceutical BMRN with a Neutral rating and $68.00 price target.

In the report, Credit Suisse noted, “BMRN has a numerically impressive pipeline; we forecast revenues growing from around $550M currently to $2.3B by 2020. Our out-year revenue forecasts exceed consensus, likely due to the contribution that we model from the pipeline. We are meaningfully above the Street on operating expenses, which impacts our DCF-derived target price. We arrive at a value of $68, putting fair value at around the current stock price. We model Vimizim (MPS IVA) and PEG-PAL (PKU) with no risk weight and BMN-701 (Pompe), BMN-673 (cancer), and BMN-111 (dwarfism) with risk adjustments of 70%, 50%, and 33%, respectively. We expect Vimizim to be launching in early 2014, but the next pivotal data for BMRN is likely not due until around late 2014. We forecast $573M for Vimizim in 2020, in-line with guidance and consensus. We expect a tempered launch (2014: $74M) as ex-US reimbursement is secured; this seems to be increasingly appreciated by the Street.”

BioMarin Pharmaceutical closed on Thursday at $63.85.