Biomarin Pharma has what investors call a 'pipeline of significance'

Posted Jan 11th 2008 6:09PM by Joseph Lazzaro
Filed under: Other Issues, Stocks to Buy

Uncertain economic times, it goes without saying, create uphill conditions for most stocks. But that does not mean one should not search for promising opportunities, and one that fits the bill, for high-risk investors, is Biomarin Pharmaceutical.

Biomarin Pharmaceutical Inc. (Nasdaq: BMRN) develops and commercializes drugs for rare and chronic diseases.

Analysts like the fact that two of its drugs qualify for FDA orphan drug status, which grants exclusive marketing rights for seven years.

Biomarin's Aldurazyme, the sole therapy for mucopolysaccharidosis I (MPS I), obtained orphan drug status in the U.S. for seven years and in Europe for 10 years. Also, the company's Naglazyme is approved in the U.S. and Europe to treat MPS VI (Maroteaux-Lamy syndrome), another rare, genetic disease. The Reuters FY 2007/FY 2008 EPS consensus estimates for BMRN are -$0.15 to $0.49.

The risks? A failure to roll-out pipeline drugs on-time would hurt BMRN's results. Analysts are also keeping an eye on the company's drug development and marketing costs.

The First Call mean rating for BMRN is: Strong Buy [15 firms]. Mean 2008 target: $45.00 [high: $57, low: $41].

Stock Analysis: Biomarin Pharmaceutical is a high-risk stock not suitable for moderate-risk or low-risk investors. Investors with an investment horizon longer than 3 years should be rewarded from BMRN's shares. Sell/Stop Loss if you were to purchase shares in this company: $17.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

Tags: 11108, Biomarin Pharmaceutical, BMRN, drugs, FDA, MPS I, MPS VI, orphan drugs, Pharmaceutical sector, U.S. Food and Drug Administration