BioMarin (BMRN) Q3 Earnings in Line, Sales Miss, '23 View Cut
BioMarin Pharmaceutical BMRN reported third-quarter 2023 adjusted earnings per share of 46 cents, in line with the Zacks Consensus Estimate. The reported earnings rose 70% year over year, driven by an increase in revenues and lower tax expenses that offset the impact of rising operating expenses.
Total revenues were $581.3 million in the reported quarter, up 15% year over year. The upside was driven by the global uptake of Voxzogo and higher Palynziq revenues. The top line missed the Zacks Consensus Estimate of $603.5 million.
Quarter in Detail
Product revenues (including Aldurazyme) totaled $568.3 million, up 15% year over year. The same from BioMarin's marketed brands (excluding Aldurazyme) increased 19% year over year to $554.5 million on higher revenues from Voxzogo. This offset lower sales from Kuvan. Royalty and other revenues totaled $13.1 million, up 9% year-over-year.
Voxzogo, approved for achondroplasia, generated sales of $123.1 million compared with $113.3 million in the previous quarter. Higher sales of Voxzogo were driven by continued global market expansion and rapid patient uptake across all regions.
Despite facing supply constraints limiting sales growth, Voxzogo continues to perform above expectations. The drug’s sales beat the Zacks Consensus Estimate and our model estimates of $115 million and $111 million, respectively. Management expects to overcome these constraints by mid-2024.
Palynziq injection sales grossed $78.9 million in the quarter, up 19% year over year, driven by patients initiating therapy, particularly in the United States. The drug’s sales beat both the Zacks Consensus Estimate of $77.5 million and our model estimates of $78.4 million.
Vimizim sales rose 2% year over year to $158.9 million. However, the drug’s sales fell short of the Zacks Consensus Estimate of $168.4 million and our model estimates of $169.3 million.
Naglazyme sales rose 9% year-over-year to $108.9 million,while Brineura generated sales of $41 million, up 8% over the year-ago quarter.
The recently approved Roctavian generated $0.8 million in sales in the first quarter of its commercial launch. Roctavian is the first and only one-shot gene therapy approved for treating adults with severe hemophilia A in the United States and Europe.
In the phenylketonuria franchise, Kuvan revenues declined 25% to $42.9 million due to generic competition. The drug lost U.S. market exclusivity in late 2020.
Product revenues from Aldurazyme totaled $13.8 million, down 52% from that recorded in the prior-year quarter. The downside was due to the unfavorable timing of order fulfillment to Sanofi SNY.
BioMarin signed a collaboration agreement with Sanofi’s subsidiary, Genzyme, for Aldurazyme. Sanofi, through Genzyme, is BMRN’s sole customer for Aldurazyme. The Sanofi subsidiary is responsible for marketing and selling Aldurazyme to third parties.
Cuts 2023 Guidance
BioMarin has been facing global delays in securing pricing and reimbursement and other market preparations for Roctavian. Management now expects to record less than $10 million from the gene therapy’s sales in 2023 compared with the previously issued guidance of $50-$150 million.
Shares of BioMarin fell 3.6% in after-market trading on Nov 1 following the results announcement, as investors were not impressed with the gene therapy’s significantly curtailed guidance.
Year to date, the stock has fallen 18.8% compared with the industry’s decline of 24.3%.
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The total revenues are now projected to be $2.39-$2.47 billion, down from the previous guidance of $2.38-$2.5 billion. This includes a raised Voxzogo sales guidance of $435-$455 million (previously $400-$440 million) on the back of robust demand.
Revenues from enzyme products (which include Aldurazyme, Brineura, Naglazyme, Palynziq and Vimizim) are expected in the range of $1.70-$1.78 billion, down from the previously issued guidance of $1.70-$1.85 billion.
Earnings per share are projected to be $1.90-$2.05 (previous guidance: $1.85-$2.10).
New CEO
In a separate press release, BioMarin announced that the current chairman and chief executive officer (“CEO”) of the company, Mr. Jean-Jacques Bienaimé will retire w.e.f. Dec 1. Post the retirement, Mr. Alexander Hardy will serve as the company’s new CEO and president, while Mr. Richard A. Meier will assume the role of chairman of BioMarin’s Board.
Mr. Hardy is currently serving as the CEO of Genentech, while Mr. Meier serves as the current lead independent director of BioMarin.
Recent Updates
Last month, Voxzogo received label expansion in the United States and European Union in achondroplasia, the most common form of dwarfism. While the drug is now approved to treat patients of all ages in the United States, it is approved in the EU to treat children aged four months and older.
Before 2023-end, BioMarin intends to start a pivotal registrational study on Voxzogo for a new potential second indication – hypochondroplasia, a condition characterized by impaired bone growth. Management is also preparing to initiate two additional clinical programs next year evaluating Voxzogo in idiopathic short stature and one in genetic short stature conditions, respectively.
BioMarin Pharmaceutical Inc. Price
BioMarin Pharmaceutical Inc. price | BioMarin Pharmaceutical Inc. Quote
Zacks Rank & Stocks to Consider
Currently, BioMarin has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector are Dynavax Technologies DVAX and Ligand Pharmaceuticals LGND, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for Ligand Pharmaceuticals’ 2023 earnings per share have increased from $5.09 to $5.10. During the same period, earnings estimates for 2024 rose from $4.56 to $4.59. Shares of Ligand lost 20.2% in the year-to-date period.
Ligand beat earnings estimates in three of the last four quarters while missing the mark on one occasion. The company has delivered an earnings surprise of 52.47% on average. In the last reported quarter, Ligand’s earnings beat estimates by 86.84%.
In the past 30 days, Dynavax’s loss per share estimates for 2023 have narrowed from 23 cents to 22 cents for 2023 in the past 30 days. During the same period, earnings estimates for 2024 rose from 3 cents to 8 cents. Shares of DVAX have gained 32.5% in the year so far.
Dynavax beat estimates in two of the trailing four quarters and missed in the remaining two, witnessing an average earnings surprise of 25.78%. In the last reported quarter, Dynavax’s earnings beat estimates by 133.33%.
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