UPDATE: BioMarin (BMRN) Won't Sell Even for 25% - 30% Premium

January 8, 2013 2:25 PM EST Send to a Friend
(Updated - January 8, 2013 2:57 PM EST)

BioMarin Pharmaceutical (Nasdaq: BMRN) likes the course its on and wouldn't even consider selling itself right now. Not even for a 25 percent or 30 percent premium.

Speaking at the J.P. Morgan Healthcare Conference today, CEO Jacques Bienaime commented that that best way to prevent a takeover is to "keep the stock up and we are doing that." He noted that the company has received several indications of interest recently.

Any decision to sell the company would actually come from large shareholders, Bienaime noted, not him nor the Board.

Big pharmaceutical companies are generally looking to replace drugs which run a risk of patents expiring, doing so with drugs that cover rare diseases and fetch robust premiums. BioMarin is looking to file with the FDA for approval of GALNS in the U.S. GALNS is designed as an enzyme replacement therapy for Morquio A syndrome.

According to an encyclopaedia entry: "Morquio's syndrome is an autosomal recessive mucopolysaccharide storage disease, usually inherited. It is a rare type of birth defect with serious consequences." Chances of getting the disease are one in 200,000.

Bienaime suspects that approval for GALNS would bring about $1 billion in revs for BioMarin.

Shares are down 0.6 percent Tuesday.


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