BioMarin Valuation Fair, But Expectations From Hemophilia Therapy Too High, Says Analyst

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  • BMO Capital Markets initiated coverage on BioMarin Pharmaceutical Inc BMRN with a Market Perform rating and a price target of $107.
  • Related: BioMarin's Growth Prospects Soar with Potential Voxzogo and Roctavian Launches, Analyst Raises Price Target.
  • The analyst writes that Biomarin's first FDA-approved product, Voxzogo, for achondroplasia can drive around $1.5 billion in peak sales. Voxzogo commercial uptake will be significant, providing long-term growth to BioMarin.
  • BMO also says that while the management's market research indicates ~35-40% commercial uptake for hemophilia treatment (Valrox), adoption will be (s)lower due to uncertainty around the drug effect, limited effect durability, and required (bi)weekly monitoring for around one year.
  • The analyst models peak Valrox sales of ~$900 million and await updates around FDA approval (PDUFA on 3/31/2023).
  • According to BMO valuation multiples suggest, BioMarin is fairly valued. 
  • Price Action: BMRN shares are down 2.03% at $114.89 on the last check Monday.
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Posted In: BiotechNewsHealth CareInitiationAnalyst RatingsGeneralBriefs
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