BioMarin (BMRN) PT Raised to $155 at UBS; Best Catalyst Path in Biotech

UBS analyst Andrew Peters reiterated a Buy rating and boosted his price target on BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) to $155.00 (from $136.00), saying it still has the best catalyst path in biotech.

"We are revising our BMRN model ahead of 2Q15 earnings and believe the stock continues to be well positioned ahead of the most robust catalyst path in biotech," Peters said. "Importantly, we have updated our model to reflect a more bullish outlook on BMN-111 in achondroplasia following positive data last month as well as an improved view on the DMD franchise (including other exon-skipping programs). Following these updates we maintain our Buy rating on BMRN and continue to view it as a core holding in mid cap biotech. Given the robust catalyst path, we still see many paths to additional value creation, with an FDA AdCom for drisapersen in 2H15 among the most visible and highest impact events in biotech this year. For 2Q results, we expect f/x headwinds to impact sequential growth, with the Vimizim launch the biggest focus for investors."

The analyst highlighted the following Key points and why we expect the stock to continue to move higher:

1] We have updated our model to reflect the strong BMN-111 data. Notably, while the growth velocity data were indeed encouraging, the key focus for us is the safety profile, which suggests the ability to move into higher doses, as well as broader potential utilization as the clinical benefit/risk profile is far greater with a safe drug.

[2] Our improved outlook on the DMD franchise is two-fold: (a) we now include risk-adjusted value for other exon-skipping programs – which are currently underappreciated by investors, and (b) management has become increasingly bullish on potential regulatory action by FDA, which we understand to be a reflection of ongoing discussions with FDA.

[3] The catalyst path remains the best in biotech in our view. With an increasingly diversified pipeline, even if drisapersen approval is delayed pending a confirmatory study, additional read-outs over the next 6-12mos help mitigate downside risk. Further, despite meaningful outperformance YTD, we expect shares to react on each read-out.

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 $137.59 yesterday.

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