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Why Is BioMarin (BMRN) Down 1.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BioMarin due for a breakout? 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 drivers.
Q3 Earnings & Sales Top Estimates
BioMarin reported adjusted earnings per share of 91 cents in third-quarter 2024, beating the Zacks Consensus Estimate of 78 cents. Quarterly earnings rose 98% year over year, driven by higher sales, partially offset by rising operating expenses.
Total revenues were $746 million in the reported quarter, up 28% year over year on a reported basis and 32% on a constant-currency basis. Strong sales of Voxzogo drove this upside. The top line beat the Zacks Consensus Estimate of $707 million.
Quarter in Detail
Product revenues totaled $733.9 million, up 29% year over year, on higher revenues from Voxzogo, Naglazyme, Palynziq and Aldurazyme. This was partially offset by lower Kuvan sales. Royalty and other revenues totaled $11.9 million, down 9% year over year.
Voxzogo generated sales of $190 million, up 54% year over year, driven by strong demand. Higher sales of Voxzogo were fueled by the U.S. label expansion to younger age groups (under five years) granted in October 2024. Per BioMarin, as of the end of the third quarter, more than 3,800 children globally, many from infancy, were receiving Voxzogo for the treatment of achondroplasia.
However, Voxzogo’s sales missed the Zacks Consensus Estimate and our model estimate of $195.5 million and $192.3 million, respectively.
Vimizim sales increased 12% year over year to $178 million. The drug’s sales missed the Zacks Consensus Estimate and our model estimate of $183.2 million and $183.9 million, respectively.
Palynziq injection sales grossed $91 million in the quarter, up 15% year over year, driven by new patient starts in the United States. The drug’s sales beat the Zacks Consensus Estimate of $89.95 million and our model estimates of $89.1 million.
Naglazyme sales rose 21% year over year to $132 million due to increasing demand and the benefit from favorable order timing. Brineura generated sales of $37 million, down 10% year over year.
New gene therapy, Roctavian, generated $7 million in sales during the third quarter compared with $1 million in the year-ago 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 35% to $28 million due to generic competition. Product revenues from Aldurazyme totaled $71 million, up significantly from $14 million recorded in the prior-year quarter. The massive uptick was driven by the favorable timing of order fulfillment to Sanofi.
2024 Guidance
BioMarin raised the financial guidance for 2024, driven by continued high demand for its marketed drugs. Management expects total revenues in the range of $2.790-$2.825 billion compared with the previous guidance of $2.750-$2.825 billion.
Adjusted operating margin is now expected to be between 26.5% and 27.5% compared with the earlier projection of 26-27%.
BioMarin also expects adjusted earnings per share to be in the range of $3.25-$3.35 compared with the earlier expectation of $3.10-$3.25.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -8.89% due to these changes.
VGM Scores
Currently, BioMarin has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, BioMarin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is BioMarin (BMRN) Down 1.9% Since Last Earnings Report?
A month has gone by since the last earnings report for BioMarin Pharmaceutical (BMRN - Free Report) . Shares have lost about 1.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BioMarin due for a breakout? 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 drivers.
Q3 Earnings & Sales Top Estimates
BioMarin reported adjusted earnings per share of 91 cents in third-quarter 2024, beating the Zacks Consensus Estimate of 78 cents. Quarterly earnings rose 98% year over year, driven by higher sales, partially offset by rising operating expenses.
Total revenues were $746 million in the reported quarter, up 28% year over year on a reported basis and 32% on a constant-currency basis. Strong sales of Voxzogo drove this upside. The top line beat the Zacks Consensus Estimate of $707 million.
Quarter in Detail
Product revenues totaled $733.9 million, up 29% year over year, on higher revenues from Voxzogo, Naglazyme, Palynziq and Aldurazyme. This was partially offset by lower Kuvan sales. Royalty and other revenues totaled $11.9 million, down 9% year over year.
Voxzogo generated sales of $190 million, up 54% year over year, driven by strong demand. Higher sales of Voxzogo were fueled by the U.S. label expansion to younger age groups (under five years) granted in October 2024. Per BioMarin, as of the end of the third quarter, more than 3,800 children globally, many from infancy, were receiving Voxzogo for the treatment of achondroplasia.
However, Voxzogo’s sales missed the Zacks Consensus Estimate and our model estimate of $195.5 million and $192.3 million, respectively.
Vimizim sales increased 12% year over year to $178 million. The drug’s sales missed the Zacks Consensus Estimate and our model estimate of $183.2 million and $183.9 million, respectively.
Palynziq injection sales grossed $91 million in the quarter, up 15% year over year, driven by new patient starts in the United States. The drug’s sales beat the Zacks Consensus Estimate of $89.95 million and our model estimates of $89.1 million.
Naglazyme sales rose 21% year over year to $132 million due to increasing demand and the benefit from favorable order timing. Brineura generated sales of $37 million, down 10% year over year.
New gene therapy, Roctavian, generated $7 million in sales during the third quarter compared with $1 million in the year-ago 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 35% to $28 million due to generic competition. Product revenues from Aldurazyme totaled $71 million, up significantly from $14 million recorded in the prior-year quarter. The massive uptick was driven by the favorable timing of order fulfillment to Sanofi.
2024 Guidance
BioMarin raised the financial guidance for 2024, driven by continued high demand for its marketed drugs. Management expects total revenues in the range of $2.790-$2.825 billion compared with the previous guidance of $2.750-$2.825 billion.
Adjusted operating margin is now expected to be between 26.5% and 27.5% compared with the earlier projection of 26-27%.
BioMarin also expects adjusted earnings per share to be in the range of $3.25-$3.35 compared with the earlier expectation of $3.10-$3.25.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -8.89% due to these changes.
VGM Scores
Currently, BioMarin has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, BioMarin has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.