William Blair analyst Sami Corwin notes Market Perform-rated BioMarin (BMRN) announced that it will acquire Amicus Therapeutics (FOLD) for $14.50 per share in an all-cash transaction, representing a total equity value of approximately $4.8B. The firm views the acquisition positively as it adds two revenue-generating, rare disease therapies to BioMarin’s commercial arsenal. William Blair sees the deal as a strong strategic fit given the clear synergies with BioMarin’s expertise in rare disease and enzyme therapy commercialization. In addition, while the acquisition does not fully offset the potential erosion of Voxzogo revenue due to competition, it is an actionable step that further diversifies the company’s revenue stream with no clinical risk. The firm also recognizes Galafold is a more mature product, which could make incremental growth more challenging to achieve. However, it believes BioMain’s scale and proven ability to drive diagnosis and adherence in rare disease should maximize the remaining opportunity.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on BMRN:
- Balanced View on BioMarin’s Amicus Acquisition: Strategic Rare-Disease Upside Versus Near-Term Leverage and Earnings Dilution Supports Hold Rating
- BioMarin rises 21.4%
- Midday Fly By: Nike reports Q2 beat, TikTok to sell U.S. unit
- Morning News Wrap-Up: Friday’s Biggest Stock Market Stories!
- BioMarin’s Amicus Acquisition: Leveraging Rare-Disease Assets and IP Extension to Drive Blockbuster Growth and Support a Buy Rating