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BioMarin reported a strong second quarter with $990 million in revenue, which was about $60 million higher than analysts expected. The company earned $1.20 per share, comfortably beating the $0.95 estimate. This growth was driven by its bone-growth drug, Voxzogo, and the addition of new treatments for Fabry and Pompe diseases from its recent purchase of Amicus Therapeutics.
Management raised its financial targets for the rest of the year, signaling confidence that it can combine the two companies while cutting overlapping costs. This is a key step in BioMarin's plan to shift from a research-heavy firm into a more profitable business. By using its existing sales teams to sell these new, high-priced medicines globally, the company expects to widen its profit margins and bring in more cash through the next decade.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company is scheduled to report its latest results after the market closes today. Analysts expect earnings of about 95 cents per share on roughly 930 million dollars in sales.
The main things to watch are how well the company is folding in its recent 3.7 billion dollar purchase of Amicus Therapeutics and the sales growth of Voxzogo, its drug for children with a common form of dwarfism. These two areas are the biggest drivers for whether the company can hit its goal of widening profit margins to 35 percent.
The company is starting a research project with the n-Lorem Foundation to find a treatment for ReNU syndrome. This is a rare genetic condition that affects how the brain develops and currently has no approved medicines. This fits the company's strategy of focusing on rare diseases where it can be the first or only provider. While this is early research and will not affect profits for years, it helps build out the future list of potential medicines the company can sell through its existing global network.
Source: PRNewsWire
The company has a habit of clearing the bars set for it, beating profit expectations in six of the last eight quarters. This suggests management has a very good handle on its costs.
| Expectation | |
|---|---|
| EPS | $1.46 |
| Revenue | $1.03B |
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