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BioMarin Gets a Downgrade

Every day, the sun rises on Wall Street and a plethora of professional analysts wake with new ideas on how they feel about certain stocks. Here at the Fool, we examine some of these picks -- and the track record of the firms behind them -- so individuals can use this to make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 95,000 investors -- many of whom actually demonstrate better investing insight than published analysts.

In the case of drugmaker and Motley Fool Rule Breakers recommendation BioMarin Pharmaceutical (Nasdaq: BMRN  ) , enough investors in the CAPS community have recently turned negative on the stock to drop its long-held five-star rating down a notch to four stars. Is there any significance to this downgrade? Let's tap the various resources of CAPS to find out.

BioMarin certainly isn't earning one less star for faltering -- just the opposite. Stock in the company has more than doubled in the past year, as the outlook for lower losses kept improving along with sales of its enzyme replacement therapies. While its Aldurazyme drug -- which partner Genzyme (Nasdaq: GENZ  ) markets -- towed its weight, its self-marketed Naglazyme therapy delivered better-than-expected revenue for the year, trimming bottom-line losses.

And while the FDA was putting the red reject stamp to work on drugs like Momenta Pharmaceuticals (Nasdaq: MNTA  ) and Novartis' (NYSE: NVS  ) generic alternative to Lovenox, the regulatory body's approval of BioMarin's Kuvan came to light just as 2007 ended.

With all the good news that BioMarin has seen lately, though, one thing still escapes the company: operating profits. And while that's likely to change in the coming year, today's $3.5 billion market capitalization is likely making investors think twice, considering that alternatives like cash-flowing peer ImClone Systems (Nasdaq: IMCL  ) are better on the projected value scale.

To see what the very best CAPS analysts are saying now about BioMarin -- as well as their track record at picking other winning stocks -- head to CAPS and have a look. Unlike analyst opinions reserved for paying clients, the community research and resources on CAPS are totally free.

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