You won't find many people who would complain about BioMarin Pharmaceutical's (NASDAQ:BMRN) performance so far this year. The stock has soared 68% since its March low and is now up more than 40% year to date.
BioMarin announced its second-quarter results after the market closed on Tuesday. And it didn't disappoint. Here are the highlights from BioMarin's Q2 update.
By the numbers
BioMarin reported revenue in the second quarter of $429.5 million, up 11% year over year. This result easily topped the consensus Wall Street revenue estimate of $418.6 million.
The company announced a net loss in the second quarter of $29.2 million, or $0.16 per share, based on generally accepted accounting principles (GAAP). However, BioMarin's bottom line improved from the GAAP net loss of $37.4 million, or $0.21 per share, posted in the prior-year period.
Wall Street is usually more concerned with adjusted non-GAAP earnings, though. BioMarin recorded adjusted net income of $57.4 million, or $0.32 per share. This blew past the average analysts' earnings estimate of $0.16 per share.
Behind the numbers
BioMarin's revenue growth in the second quarter was driven mainly by higher sales of two drugs. Sales of Aldurazyme, which is approved for treating rare genetic disease mucopolysaccharidosis I (MPS I), skyrocketed 457% higher year over year to $32.3 million. Sales for Palynziq, which treats genetic disorder phenylketonuria (PKU), soared 116% to $40.7 million.
Sales for the company's top-selling PDU drug, Kuvan, rose 8% year over year to $122.6 million -- mainly because of a price increase in the U.S. BioMarin's MPS IVA drug Vimizim lost some steam in Q2, with sales falling 5% year over year due to the timing of orders and the negative impact of the COVID-19 pandemic.
Naglazyme ranked as the biotech's worst performer in the second quarter. Sales for the MPS VI drug sank 18% year over year to $81 million. As was the case for Vimizim, Naglazyme's sales declined because of the timing of orders and the pandemic.
BioMarin's GAAP bottom line improved in Q2 in part because of its revenue growth. The company also benefited from a higher income tax benefit than in the prior-year period. Its adjusted earnings rose in the second quarter of 2020 thanks primarily to lower research and development expenses and a higher gross profit.
BioMarin projects sales of between $1.85 billion and $1.95 billion for full-year 2020, the same as its previous outlook given in April. The company expects GAAP net income will come in between $720 million and $980 million, up from the range of $20 million to $80 million previously announced.
There are several potential catalysts on the way for the biotech stock in the next several months. An FDA approval decision for Valoctocogene Roxaparvovec in treating severe hemophilia A is expected by Aug. 21. BioMarin expects European approval of the drug by late 2020 or early 2021. In addition, the company awaits European approval for Vosoritide in treating children with bone growth disorder achondroplasia.