Benchmark Capital Downgrades BioMarin (BMRN) to Hold

October 15, 2008 9:34 AM EDT

Benchmark Capital downgrades BioMarin (Nasdaq: BMRN) from Buy to Hold.

Benchmark analyst says, "We are downgrading BioMarin to Hold on concerns of Kuvan lower-than-expected sales run-rate may linger. Recently, we spoke with BioMarin's head of sales and CFO. We believe numbers in the out years may have to come in further and investors may not see a bottom in the stock for a few more quarters...We believe catalysts such as the initiation of a DTC campaign, reimbursement for psychological evaluations, and clarity on dosing and efficacy are needed for Kuvan to gain further traction. Near-term challenges, in our view, are not going away anytime soon...Overall, we believe BioMarin faces a number of near-term challenges and few catalysts to drive a meaningful move up in the stock in the near-term. While expectations for the quarter have come in considerably, we do not believe investors fully appreciate the length of time it will take to overcome challenges to Kuvan's adoption...The Company, however, has a rich pipeline and the growth story may become more relevant in late 2009."

BioMarin Pharmaceutical Inc. (BioMarin) develops and commercializes biopharmaceuticals for serious diseases and medical conditions.

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