Wedbush Raises Price target on BioMarin Pharma (BMRN) to $137 Following Merck Serono Deal

Wedbush reiterated a Neutral rating on BioMarin Pharmaceutical Inc. (NASDAQ: BMRN), and raised the price target to $137.00 (from $131.00), following Merck Serono Deal.

Analyst Liana Moussatos commented, "BioMarin has bought the ex-US/Canada rights to Kuvan and pegvaliase from Merck Serono and announced 2016 revenue guidance for Kuvan of $320MM- $350MM. Under the terms of the agreement, BioMarin will pay Merck Serono €340MM as an upfront payment (upon close of transaction), €125MM for regulatory milestones related to pegvaliase and an additional €60MM in milestones if combined sales of Kuvan and pegvaliase reach an undisclosed threshold. In return, BioMarin will gain exclusive worldwide rights to Kuvan and pegvaliase with the exception of Kuvan in Japan and noted that it will begin commercializing and recognizing Kuvan revenue from global sales (except Japan) in January 2016 and expects 2016 revenue for Kuvan to be between $320MM-$350MM including $70MM-$80MM from expected 2016 ex-US/Canada sales. We have updated our model based on guidance. The net impact of the payment to Merck Serono versus the additional Kuvan income was an improvement in revenue/net income for 2016 and subsequent years and thus increased our price target."

For an analyst ratings summary and ratings history on BioMarin Pharmaceutical Inc. click here. For more ratings news on BioMarin Pharmaceutical Inc. click here.

Shares of BioMarin Pharmaceutical Inc. closed at $113.00 yesterday.

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