On Tuesday, Biomarin Pharmaceutical Inc. (NASDAQ:BMRN) reported third-quarter adjusted EPS of 91 cents, almost double the 46 cents reported a year ago, beating the consensus of 52 cents.

The company reported sales of $745.74 million, beating the consensus of $700.14 million. Sales increased 28%, driven by strong VOXZOGO contributions from new patient starts in all regions.

In the quarter, revenues from BioMarin’s Enzyme Therapies (Vimizim, Naglazyme, Aldurazyme, Brineura, and Palynziq) increased 27% year over year.

Also Read: BioMarin Stands Firm on 2027 Revenue Target Amid Ascendis Competition, Goldman Sachs Analyst Remains Bullish

Guidance: BioMarin reaffirmed its long-term guidance and outlook, targeting around $4 billion in revenues in 2027.

The company expects a 40% adjusted operating margin starting in 2026 and growing to the low-to mid-40% range over time.

William Blair has downgraded BioMarin to a Market Perform.

The analyst adds, “We believe the company’s current valuation adequately reflects revenue estimates for the company’s commercial portfolio, and we do not think its clinical pipeline will be a source of significant value creation in the near term.”

William Blair models 2024 and 2025 revenue of $2.8 billion and $3.1 billion, respectively.

Voxzogo sales increased 54% to $190 million in the third quarter. The analyst says Voxzogo remains the company’s key topline growth driver, but the threat of competition could erode its revenue growth and market share.

Last month, Ascendis Pharma A/S (NASDAQ:ASND) released topline data from a trial in achondroplasia, showing its long-acting CNP, navepegritide, could potentially deliver similar efficacy as Voxzogo but with a more attractive once-weekly dosing.

Although Voxzogo’s label might expand, William Blair does not anticipate a significant increase in the total addressable patient population until 2030.

Despite BioMarin’s strong pipeline, the analyst does not consider data readouts from its early-stage programs over the next year as significant value drivers.

Only two programs are expected to contribute to BioMarin’s top line through label expansions by 2027: Palynziq for adolescent Phenylketonuria (PKU) patients and Voxzogo for Hypochondroplasia (HCH).

Analyst Reaction:

• Baird maintains Biomarin and lowers the price target from $72 to $65.
• UBS reaffirms the Buy rating, raising the price target from $104 to $106.
• Evercore ISI maintains Biomarin with an Outperform rating, lowering the price target from $115 to $105.
• RBC Capital reiterates Biomarin with a Sector Perform and price target of $80.

Price Action: BMRN stock is down 3.1% at $67.74 at last check Wednesday.

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Image created using artificial intelligence via Midjourney.