BioMarin Pharmaceutical Inc.’s (BMRN) fourth quarter 2013 loss (including stock-based compensation expenses but excluding other special items) of 27 cents per share was narrower than the Zacks Consensus Estimate of a loss of 34 cents per share but wider than the year-ago loss of 22 cents per share. The wider year-over-year loss was primarily due to higher expenses. Including one-time items, fourth quarter loss widened by a penny to 44 cents per share.

Total revenues (on an adjusted basis) climbed 13.2% to $148.5 million in the reported quarter beating the Zacks Consensus Estimate of $145 million. The year-over-year increase was attributable to higher net product revenues.

Net product revenues in the final quarter of 2013 surged approximately 10.2% to $144.3 million. Naglazyme, approved for treating MPS-VI, a rare genetic enzyme deficiency disorder, accounted for a significant portion of product revenues recorded in the quarter. Revenues from the drug were up 9% to $68.7 million. The receipt of a centralized order from the Brazilian Ministry of Health aided Naglazyme revenues in the final quarter of 2013.

Net product revenues from Kuvan tablets, indicated for treating mild-to-moderate forms of phenylketonuria, were up 13.3% to $45.3 million. The impressive rise was due to higher demand for the drug. BioMarin expects to launch Kuvan as powder for oral solution shortly. U.S. approval for the new form of Kuvan was gained in Dec 2013.

BioMarin receives royalties from partner Sanofi (SNY) on Aldurazyme, a enzyme replacement therapy. Revenues to BioMarin (excluding transfer revenues) from Aldurazyme were $27.5 million in the fourth quarter, up 15.1%.

Net revenues from Firdapse, currently marketed in the EU, came in at $4.3 million in the quarter, as opposed to $3.4 million a year ago. Firdapse was launched in Apr 2010, in the EU, for treating patients suffering from LEMS, a rare autoimmune disorder. The drug has performed disappointingly since launch.

The latest entrant into BioMarin’s product portfolio is Vimizim. The drug was cleared in the U.S. earlier in the month for treating patients suffering from MPS IVA. The EU approval of the drug is on track with the European Medicines Agency’s (:EMA) Committee for Medicinal Products for Human Use (CHMP) recommending the drug’s approval for the same indication. A decision from the EC on Vimizim is expected in the second quarter of 2014.

Both research & development expenses (15.3%) and selling, general & administrative expenses (30.4%) were steeper during the quarter. BioMarin’s efforts to develop its pipeline contributed to the increase in research & development expenses. Costs associated with the launch of Vimizim pushed up selling, general & administrative expenses.

2014 Outlook

Apart from announcing financial results for the final quarter of 2013, the company also provided an outlook for 2014. BioMarin expects total revenues in the range of $650–$680 million (well above $553.4 million recorded in 2013). The Zacks Consensus Estimate of $671 million is within the company’s guidance range. The company expects total Naglazyme revenues in the range of $290–$310 million and Kuvan net product sales in the range of $180–$200 million. The biopharmaceutical company projects 2014 Vimizim sales of $60–$70 million with about 350 patients on therapy by year end.

BioMarin also provided guidance with on cost items. Selling, general & administrative expenses are expected in the range of $265–$285 million and research & development expenses are projected in the range of $500-$530 million.

BioMarin currently carries a Zacks Rank #3 (Hold). Some better-ranked biopharma stocks include Alexion Pharmaceuticals, Inc. (ALXN) and Gilead Sciences, Inc. (GILD). Both stocks carry a Zacks Rank #1 (Strong Buy).

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