Expect A Pair Of Drug Approvals From BioMarin In 2017; Stock Remains Pricey

“While we see potential approval of two products this year and meaningful pipeline progress, we continue to believe BioMarin Pharmaceutical Inc. BMRN is relatively expensive as it consistently trades at the top of peers,” Wedbush’s Liana Moussatos said in a note, while reiterating a Neutral rating on the company, with a price target of $102.

Q4/FY Results

BioMarin Pharma reported its total revenue for the fourth quarter at $300 million, beating the consensus, with FY 2016 total revenue of $1117 million, which was also ahead of expectations.

The company’s Q4 and FY 2016 EPS came in at $(0.53) and $(3.81), respectively, with both missing the consensus forecasts due to higher than anticipated operating expenses.

BioMarin Pharma reiterated its guidance for 2017 of achieving non-GAAP profitability, with non-GAAP income guidance of $30 million–$70 million.

Related Link: Your Guide To 2017's Emerging Pharmaceuticals Catalysts

The company ended 2016 with $1.4 billion in cash, equivalents, and long- and short-term investments.

Moussatos believes the 2017 guidance “points to topline growth,” and mentioned that the estimated Naglazyme, Kuvan and Vimizim support this.

The FY 2017 guidance “for total revenue of $1.25 billion–$1.3 billion represents a 12–16 percent increase over 2016’s $1.1 billion,” the analyst stated.

Drug Approvals Expected

Moussatos continues to expect Brineura to receive approval on or before the PDUFA data of April 27, while noting that BioMarin Pharma intends to dose another three patients with the same regimen as in Q4 2016, which suggests the initial safety and efficacy data were likely to have been favorable.

“BMRN expects to provide an update before the start of the BMN-270 registration directed Phase 2b in Q3:17,” the analyst went on to say.

The company also reaffirmed plans to submit the BLA (biologics license application for PEG-PAL in Q2 2017, which would set the stage for the potential approval and launch of the drug candidate before year end 2017.

Shares of BioMarin closed Friday trading down 1.99 percent at $87.51.