Is BioMarin the Next Biotech Takeover Candidate? (BMRN)
Everyone is looking fo rthe next biotech takeover candidate for their investment portfolios, but you can’t look at just market caps nor just at sales. Those are critical because many aren’t worth the time for larger players, but you also have to consider the pipeline and have to consider its partnerships and total reach that can be attained (among other issues).
BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) is one of the biotech players that has come up over and over in the last couple of years over its market cap and with 2008 being the year that its revenues finally start to ramp up. It showed $121 million in 2007 revenues, and analysts are looking for $312 million in 2008 and over 4420 million in 2009. This is also the year its P/E is finally supposed to go positive with analysts looking for $0.49 EPS for 2008 and $1.13 EPS for 2009.
It also has partnerships with the following:
- Genzyme (NASDAQ: GENZ) for the development and commercialization of Aldurazyme® (laronidase) for MPS I;
- Alliant Pharmaceuticals for the North American commercialization of the Orapred product line, including Orapred ODT (prednisolone soduim phosphate orally disintegrating tablets)’
- and Merck Serono for the development and ex-U.S./ ex-Japan/ ex-Canada commercialization (pending regulatory approvals) of BioMarin’s Kuvan and 6R-BH4 for other indications.
The company also just yesterday announced that Summit plc signed a worldwide licensing agreement for Duchenne Muscular Dystrophy program.
This was mentioned as a potential buyout candidate yesterday by an analyst on CNBC. Shares closed up $1.21 at $31.40 yesterday and shares are up 1.5% at $31.90 at 9:54. Its 52-week trading range is $17.63 to $41.00.
Whether or not this is the next biotech to fall is still an unknown. But it fits the bill and this is one that traders seem to be putting funds toward over the last couple of weeks.
Jon Ogg
July 23, 2008