BioMarin Pharma (BMRN) Could Be Pressured By Roche/Spark Deal (RHHBY) (ONCE)

Nomura/Instinet analyst, Christopher Marai, reiterated his Neutral rating on shares of BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) after the WSJ reported that Roche (OTC: RHHBY) is nearing a deal to purchase Spark Therapeutics (NASDAQ: ONCE). ONCE is developing SPK-8011 a gene therapy for hemophilia A that would directly compete with BMRN’s valoctocogene roxaparvovec (ValRox) and the analyst expects a selloff if the acquisition occurs.

The analyst believes it validates mostly overlooked competition and BMRN will become targeted for the hemophilia gene therapy product stating "We’ve previously highlighted SPK-8011 competitive threat to ValRox, though this has been discounted by the Street due to ValRox’s later-stage of development and higher factor-VIII level production. However, we believe that with ONCE, Roche could become “a one stop shop” for long-acting factor products – including gene therapy and thus major competitor to BMRN’s ValRox".

No change to the price target of $93.

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 $92.94 yesterday.

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