Please ensure Javascript is enabled for purposes of website accessibility

Why BioMarin Pharmaceutical Inc. Stock Is Fading Today

By George Budwell - Updated Mar 12, 2020 at 11:48AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

BioMarin's stock isn't escaping the marketwide sell-off. Savvy investors, though, may want to take advantage of this latest decline in the drugmaker's shares.

What happened

Rare-disease company BioMarin Pharmaceutical (BMRN -0.12%) saw its shares plunge by 11.5% right out of the gate Thursday morning. The drugmaker's shares were being pulled down by the markewide sell-off sparked by the global spread of the COVID-19 illness.

Unlike a lot of its biotech peers, however, BioMarin's shares rebounded to some degree as the day's trading progressed. The biotech stock, in fact, was down by 4.72% as of 10:54 a.m. EDT Thursday. 

A downward-sloping arrow on a chalkboard

Image source: Getty Images.

So what

As a revenue-generating orphan-drug maker with multiple products on the market and two high-value clinical candidates in late-stage development, BioMarin would seem to be immune to this marketwide turbulence. People with life-threatening rare diseases, after all, aren't going to forgo their treatments. However, investors don't appear to care about the facts in this ongoing flight to safety. Nearly every publicly traded company is taking a major hit today -- even ones like BioMarin, which probably won't be economically impacted by this respiratory illness in the least.   

Now what

Is this dip in BioMarin's share price a buying opportunity? The short answer is yes. BioMarin has one of the best orphan-drug portfolios in the business, along with a robust clinical pipeline. In the near future, the company should also grab key regulatory approvals for its severe hemophilia A drug candidate valrox and its achondroplasia treatment vosoritide. Both of these drugs have blockbuster sales potential. So, if you're willing to buy in this moody market, BioMarin should probably be at the top of your list. 

George Budwell has no position in any of the stocks mentioned. The Motley Fool recommends BioMarin Pharmaceutical. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BioMarin Pharmaceutical Inc. Stock Quote
BioMarin Pharmaceutical Inc.
$95.70 (-0.12%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.