What's In Store For BioMarin (BMRN) This Earnings Season?
Zacks Investment Research | Oct 19, 2016 09:56PM ET
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is scheduled to report third-quarter 2016 results on Oct 27, after the market closes. In the last reported quarter, the company had posted a positive surprise of 78.00%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Key drugs, Vimizim and Kuvan, which drove BioMarin’s top line in the second quarter of 2016, should continue the strong momentum this quarter too. Encouraged by the robust performance of Vimizim and Kuvan in the second quarter, BioMarin raised its revenue guidance for 2016. The company now expects revenues in the range of $1.10 billion to $1.15 billion (old guidance: $1.05–$1.10 billion).
On the second-quarter 2016 call, BioMarin noted that Vimizim’s quarterly sales were driven by solid patient growth and to some extent, by the timing of large orders from Latin America and the Middle East. The company has also benefited from penetration into additional markets. Due to increased patient penetration and contributions from new smaller markets, BioMarin raised the 2016 Vimizim sales guidance to the range of $340 million to $360 million (old guidance: $315–$340 million). Meanwhile, the product should continue to perform decently with the existing and new patient referrals converting to commercial therapy.
Kuvan’s North American sales continue to be propelled by growth in new patients and high levels of adherence. Internationally, the acquisition of the drug’s global rights has opened a stream of orders directly from the majority of the top markets to the company. Driven by new patient additions and contributions from international markets, BioMarin raised its 2016 Kuvan sales guidance to the range of $340 million to $360 million (old guidance: $320–$350 million).
Meanwhile, Naglazyme revenues vary on a quarterly basis primarily due to the timing of central government orders from Latin America. Nevertheless, the drug continued to witness steady patient growth in the second quarter and should do the same in third-quarter 2016.
On the pipeline front, BioMarin received a regulatory setback during the quarter in the form of an extension of the review period for Brineura (cerliponase alfa) by three months following the submission of additional data from an ongoing extension study, per the FDA’s request. The regulatory agency will announce its decision by Apr 27, 2017, instead of the previous date of Jan 27, 2017.
On the positive side, Brineura was accepted for review in the EU, where a decision should be out in the third quarter of 2017. The company is looking to get Brineura approved for the treatment of children with CLN2 disease, a form of Batten disease.
Operating expenses are expected to be up sequentially.
On the third-quarter call, focus will be on BioMarin’s overall performance as well as that of its marketed products. Investors are also expected to keenly await updates on the company’s pipeline.
Surprise History
BioMarin’s track record has been decent so far, with the company beating estimates in three of the last four quarters. However, over the trailing four quarters, the company has recorded an average negative surprise of 2.60%.
BIOMARIN PHARMA Price and EPS Surprise
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