Strategic Acquisition of Inozyme Boosts BioMarin’s Long-Term Revenue Prospects

Morgan Stanley analyst Vikram Purohit maintained a Buy rating on BioMarin Pharmaceutical (BMRN – Research Report) today and set a price target of $105.00.

Vikram Purohit has given his Buy rating due to a combination of factors surrounding BioMarin Pharmaceutical’s strategic acquisition of Inozyme. This acquisition is expected to significantly bolster BioMarin’s enzyme replacement therapy (ERT) business, with management projecting potential peak revenues of $400 million to $600 million by the mid-2030s. This represents a notable upside to BioMarin’s consensus sales estimates, enhancing the company’s long-term revenue prospects.
Moreover, the acquisition aligns seamlessly with BioMarin’s existing ERT portfolio, particularly with the addition of Inozyme’s late-stage pipeline asset, INZ-701. INZ-701 is being developed for the treatment of ENPP1 deficiency, a rare genetic condition, and is anticipated to generate substantial sales across various age groups. The expected incremental sales from this acquisition could contribute approximately 10% upside to BioMarin’s 2034 consensus sales, reinforcing Purohit’s positive outlook on the stock.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BMRN in relation to earlier this year.