BioMarin: Voxzogo Approval Could Trigger A Lengthy Bull Run For Cash Rich Biotech

Summary

  • BioMarin has 6 commercialised assets in the rare disease space, targeting e.g. lysosomal storage diseases.
  • The company is on track for ~$1.8bn of revenues in FY21, and importantly, a small non-GAAP net income, reversing years of heavy losses.
  • The company also has a PDUFA date on November 30th when the FDA will decide whether to approve its candidate Voxzogo for Achondroplasia.
  • The trial data - and an approval in Europe - suggests Voxzogo will get over the line, and the therapy has blockbuster potential.
  • Another major catalyst is hemophilia therapy Roxavian. Rejected by the FDA last year, BioMarin may now have the data it needs for an approval, and multi-billion market in the US and EU. I am bullish.
  • This idea was discussed in more depth with members of my private investing community, Haggerston BioHealth. Learn More »

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Investment Thesis

BioMarin (NASDAQ:BMRN) is a $14.5bn market cap biotech with 6 commercialised drug products, all targeting rare diseases. The San Rafael, California based company has grown its revenues from $750m in 2014, to $1.86bn in 2020, but for the last 5

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This article was written by

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Edmund Ingham is a biotech consultant. He has been covering biotech, healthcare, and pharma for over 5 years, and has put together detailed reports of over 1,000 companies. He leads the investing group Haggerston BioHealth.

The group is for both novice and experienced biotech investors. It provides catalysts to look out for and buy and sell ratings. It also provides product sales and forecasts for all the Big Pharmas, forecasting, integrated financial statements, discounted cash flow analysis and market by market analysis. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BMRN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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