BioMarin at Morgan Stanley conference: growth, deals and pipeline bets

BioMarin Pharmaceutical, at the Morgan Stanley 24th Annual Global Healthcare Conference, detailed a steadily growing business amid a major acquisition and future deal-making. The company showcased robust sales across its rare-disease portfolio, while acknowledging ongoing integration efforts with Amicus Therapeutics and the development of new pipeline assets.

President and CEO Alexander Hardy and CFO Brian Mueller announced BioMarin's journey towards becoming a rare-disease company at scale, boasting increased cash flow, greater scale, and more acquisition opportunities.

The company highlighted several key growth engines, including VOXZOGO, which is projected to reach $1 billion in 2024 revenue, and PALYNZIQ, with 27% growth in the second quarter of 2024. VIMIZIM, growing at about 7% a year, is expected to surpass $1 billion in peak revenue. The Amicus deal, which includes GALAFOLD and POMBILITI, brings about $200 million in annual non-GAAP expense synergies.

BioMarin's market capitalization is now at $12.74 billion, with revenue of $3.41 billion over the last twelve months and an 11.2% growth rate. The company anticipates realizing most synergies by 2027, with partial realization starting in the fourth quarter of 2024.

Management mentioned that the integration process will be lengthy due to the regulated nature of the systems. BioMarin has already announced workforce reductions, retaining 192 of Amicus's 505 employees, primarily in commercial and medical affairs, to support revenue growth for GALAFOLD and POMBILITI. The acquisition is expected to be accretive in the first year, with stronger accretion beginning in 2025.

BioMarin aims to achieve a debt-to-equity ratio below 2.5 times by mid-2027, expanding its balance-sheet capacity to an estimated $6 billion by 2028, allowing the company to continue pursuing M&A while paying down debt.