BioMarin Valuation Fair, But Expectations From Hemophilia Therapy Too High: BMO

 

• BMO Capital Markets initiated coverage on BioMarin Pharmaceutical Inc 
  BMRN
   with a Market Perform rating and a price target of $107.
• The analyst writes that Biomarin's first FDA-approved product, Voxzogo, for achondroplasia can drive around $1.5 billion in peak sales. Voxzogo commercial uptake will be significant, providing long-term growth to BioMarin.
• BMO also says that while the management's market research indicates ~35-40% commercial uptake for hemophilia treatment (Valrox), adoption will be (s)lower due to uncertainty around the drug effect, limited effect durability, and required (bi)weekly monitoring for around one year.
• The analyst models peak Valrox sales of ~$900 million and await updates around FDA approval (PDUFA on 3/31/2023).
• According to BMO valuation multiples suggest, BioMarin is fairly valued. 

https://www.benzinga.com/general/biotech/23/01/30626833/biomarin-valuation-fair-but-expectations-from-hemophilia-therapy-too-high-says-analyst