BioMarin Shares Jump 5% After Global Patent Settlement With Ascendis

On August 31, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) experienced a 5% stock increase after announcing a global patent settlement with Ascendis Pharma A/S (NASDAQ:ASND). The agreement resolves a dispute over Ascendis's achondroplasia drug, Yuviwel. The settlement eliminates ongoing litigation, including a US International Trade Commission investigation, and includes a royalty payment structure.

BioMarin will pay Ascendis 20% of Yuviwel's net sales in the US and 18% in the EU, Brazil, and South Korea until May 20, 2030. In exchange, BioMarin grants Ascendis a royalty-free license for Yuviwel's active compound. BioMarin's CEO emphasized the importance of long-term innovation, while Ascendis CEO highlighted Yuviwel's commercial success.

Institutional ownership for BioMarin decreased while Ascendis saw a slight increase. The settlement provides BioMarin with a defined, long-term royalty stream and Ascendis with full commercial flexibility for Yuviwel.