Strategic Acquisition of INZY Boosts BioMarin’s Growth Potential and Pipeline Expansion

Kostas Biliouris, an analyst from BMO Capital, maintained the Buy rating on BioMarin Pharmaceutical (BMRN – Research Report). The associated price target remains the same with $115.00.

Kostas Biliouris has given his Buy rating due to a combination of factors that highlight BioMarin Pharmaceutical’s strategic acquisition and growth potential. The acquisition of INZY, which focuses on INZ-701 for ENPP1 deficiency, is seen as a strategic fit for BioMarin’s existing expertise in enzyme replacement therapies (ERTs). This acquisition, made at a relatively low cost, is expected to yield a favorable return on investment with projected peak sales reaching between $400-600 million by the mid-2030s.
Biliouris also notes that INZ-701 could become a first-in-disease treatment for ENPP1 deficiency, a condition with a significant unmet need due to the lack of approved treatments. The ongoing clinical trials and BioMarin’s global regulatory and commercialization capabilities are expected to maximize the impact of INZ-701. Furthermore, the acquisition is not anticipated to affect BioMarin’s operational expenses significantly, allowing for continued growth and margin expansion. Overall, the INZY acquisition is viewed as a strategic move that enhances BioMarin’s pipeline and positions the company for future growth.

In another report released on May 16, Bernstein also maintained a Buy rating on the stock with a $95.00 price target.

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.