Benchmark Capital Upgrades BioMarin (BMRN) to Buy

January 7, 2009 11:32 AM EST

Benchmark Capital upgrades BioMarin (Nasdaq: BMRN) from Hold to Buy. Price target $22

Benchmark analyst says, "BioMarin announced a partnership with LaJolla Pharmaceuticals (Nasdaq: LJPC) for Riquent, which is being developed for lupus renal disease. Upfront costs include $7.5m in cash and $7.5m for the purchase of preferred shares. BioMarin stands to lose no more than $52.5m (and perhaps much less) if Riquent fails or 9% of its current cash position...BioMarin has a relatively high short interest ratio at 16% although some of it is due to convertible arbitrage. Going forward, it is may become more difficult for investors to short BioMarin given that we see $5-6 upside to BioMarin shares if Riquent pivotal trial succeeds...If Riquent fails and Kuvan sales do not materially pick up in the coming year, then BioMarin faces greater focus on its emerging pipeline."

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

Related Categories

Upgrades

Stocks Mentioned

Related Entities

• Benchmark Capital

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?