BioMarin (BMRN): Top Biotech Pick for 2016 - Cowen

Cowen analyst, Phil Nadeau, believes that BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) base business is strong, and its pipeline remains one of the best in mid-cap biotech. A disappointing FDA review of drisapersen has pressured BMRN's stock. Nonetheless, we think a string of pipeline events in 2016 will remind investors of BMRN's growth potential and reignite interest.

BioMarin's base business is healthy, and Cowen's analysis suggests that the current stock price is only modestly above the value of the marketed products. A disappointing FDA review of drisapersen has pressured shares. While investors worry BMRN's stock could take a another leg down when the FDA formally declines to approve drisapersen around its 12/27.

Investors are missing that BMRN has 4 other programs in pivotal testing which will generate much news flow over the next 12 months. We think cerliponase (Batten's), pegvaliase (PKU), and vosoritide (achondroplasia) are particularly promising, and could have $2B+ in peak sales potential. Results from all 3 of these programs, including pivotal data from the first two, are expected during H1:16. We expect continued performance of BMRN's marketed products, and the emergence of several late-stage pipeline candidates, will make BMRN a top performer during 2016.

The analyst maintained an Outperform rating and $175 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 $94.15 yesterday.

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