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Why Is BioMarin (BMRN) Up 5.4% Since Last Earnings Report?

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It has been about a month since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have added about 5.4% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is BioMarin due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Q2 Earnings & Sales Top Estimates

BioMarin reported adjusted earnings per share of 96 cents in second-quarter 2024, beating the Zacks Consensus Estimate of 57 cents. Quarterly earnings, which rose 78% year over year, were driven by higher sales that were partially offset by rising operating expenses.

Total revenues were $712.0 million in the reported quarter, up 20% year over year on a reported basis and 25% on a constant-currency basis. Strong sales of Voxzogo drove this upside. The top line beat the Zacks Consensus Estimate of $660.5 million.

Quarter in Detail

Product revenues (including Aldurazyme) totaled $702.1 million, up 20% year over year. Product revenues from BioMarin's marketed brands (excluding Aldurazyme) increased 22% year over year to $663.5 million on higher revenues from Voxzogo, Naglazyme and Palynziq. This was partially offset by lower Kuvan sales. Royalty and other revenues totaled $9.9 million, down 6% year over year.

Voxzogo generated sales of $183.9 million, up 62% year over year and 20% quarter over quarter, driven by strong demand. Higher sales of Voxzogo were fueled by the U.S. label expansion to younger age groups (under five years). This label expansion was received last year in October.

Voxzogo’s sales beat the Zacks Consensus Estimate and our model estimate of $166 million and $168 million, respectively.

Vimizim sales were flat year over year at $178.0 million. The drug’s sales missed the Zacks Consensus Estimate and our model estimate of $183 million and $182 million, respectively.

Palynziq injection sales grossed $88.3 million in the quarter, up 18% year over year, driven by new patient starts in the United States. The drug’s sales beat the Zacks Consensus Estimate of $81 million and our model estimates of $83 million.

Naglazyme sales rose 47% year over year to $132.0 million due to the favorable timing of large government orders in certain regions outside the United States. Brineura generated sales of $45.3 million, up 19% year over year.

Roctavian added $7.4 million in sales during the second quarter compared with $0.8 million in the previous quarter. Sales rose as part of the company’s updated strategy to focus on three prioritized countries — the United States, Germany and Italy.

In the PKU franchise, Kuvan revenues declined 43% to $28.6 million due to generic competition.

Product revenues from Aldurazyme totaled $38.6 million, down 4% from that recorded in the prior year quarter. Sales likely declined due to the unfavorable timing of order fulfillment to Sanofi.

2024 Guidance

BioMarin raised the financial guidance for 2024 it provided earlier this year, driven by continued high demand for its marketed drugs. Management expects total revenues in the range of $2.75-$2.83 billion compared with the previously issued guidance of $2.70-$2.80 billion.

Adjusted operating margin is now expected to be between 26% and 27% compared with the earlier projection of 24% and 25%.

BioMarin also expects adjusted earnings per share to be in the range of $3.10-$3.25 compared with the earlier expectation of $2.75-$2.95.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

The consensus estimate has shifted 5.02% due to these changes.

VGM Scores

At this time, BioMarin has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, BioMarin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

BioMarin is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Denali Therapeutics Inc. (DNLI - Free Report) , a stock from the same industry, has gained 14.2%. The company reported its results for the quarter ended June 2024 more than a month ago.

Denali Therapeutics reported revenues of $0 million in the last reported quarter, representing a year-over-year change of -100%. EPS of -$0.59 for the same period compares with $1.30 a year ago.

Denali Therapeutics is expected to post a loss of $0.61 per share for the current quarter, representing a year-over-year change of +15.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Denali Therapeutics. Also, the stock has a VGM Score of F.


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