Raymond James raises BioMarin stock price target on patent settlement

Raymond James upgraded its price target for BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) to $109 from $105, while keeping the stock's rating at Outperform. The company's shares are currently priced at $65.07, with a Fair Value assessment of $82.73 indicating considerable upside potential. The revised target was issued on Monday, in response to BioMarin's recent announcement of a settlement with Ascendis Pharma over a patent infringement dispute concerning BioMarin's Yuviwel drug, a competitor to Ascendis' CNP analog.

The settlement led to a 20% royalty rate in the U.S. and 18% in major non-U.S. markets through 2030, pertaining to all potential Yuviwel indications and combinations. Raymond James highlighted that the combined royalties from both regions will substantially benefit BioMarin during the launch period of Yuviwel and accelerate the company's efforts to reduce debt following its Amicus acquisition.

An InvestingPro tip indicates that BioMarin's net income is anticipated to increase this year, backing the optimistic outlook. Investors can obtain more detailed information by accessing the Pro Research Report, which covers BioMarin and over 1,400 US stocks. In related news, BioMarin and Ascendis Pharma recently settled their patent dispute, with Ascendis agreeing to pay BioMarin a 20% royalty on net sales in the U.S., EU, Brazil, and South Korea until May 2030.

Additionally, BioMarin is planning to acquire Alesta Therapeutics for $275 million upfront, with potential additional payments of up to $215 million contingent on specific developmental and regulatory milestones. The acquisition involves the sale of all non-ALE1 assets by Alesta to BioMarin, without any transfer of Alesta employees to BioMarin.

In reaction to these developments, Stifel maintained a Hold rating with a $70 price target, while Piper Sandler kept an Overweight rating with an $88 target, citing productive discussions with BioMarin management. Canaccord Genuity also reaffirmed a Buy rating and set a $114 price target, emphasizing the Alesta acquisition. Contrastingly, H.C.

Wainwright reduced its price target from $60 to $59, retaining a Neutral rating due to the financial implications of the Alesta acquisition. These recent events demonstrate BioMarin's strategic maneuvers within the pharmaceutical sector. This report was AI-assisted and edited for accuracy.