Bernstein raises BioMarin stock target to $95, maintains Outperform

On Monday, Bernstein SocGen Group updated its outlook on BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN), increasing the price target to $95 from the previous $94, while reiterating an Outperform rating on the company’s shares. According to InvestingPro data, analyst targets range from $65 to $122, with the stock currently trading at $58.74. The adjustment follows the announcement of BioMarin’s acquisition of Inozyme, a decision that marks CEO Alexander Hardy’s first deal since taking the helm.

BioMarin revealed it would acquire Inozyme for $270 million in cash, a significant move as Inozyme is a single-asset enzyme replacement company. The acquisition price of $4 per share is a substantial 182% premium over Inozyme’s closing share price on Sunday. The transaction also involves BioMarin obtaining $40 million in net cash, effectively valuing the deal at $230 million in enterprise value (EV). With a strong current ratio of 5.52 and moderate debt levels, InvestingPro analysis shows BioMarin is well-positioned financially to execute this acquisition. The completion of this acquisition is anticipated in the third quarter of 2025.

Bernstein’s analyst expressed a positive stance on the acquisition, stating it aligns well with BioMarin’s existing business units and research and development strengths. The analyst also noted that the acquisition price was reasonable and that the overlap in call points is beneficial. The deal is seen as a strong strategic fit and is expected to build investor confidence in BioMarin’s business development strategy.

The acquisition is anticipated to enhance BioMarin’s portfolio and capabilities in enzyme replacement therapies. The analyst’s outlook suggests that similar future deals could increase the range of investment that shareholders are willing to support, further solidifying trust in BioMarin’s approach to growth and development.

Investors and market observers will be looking closely at how this acquisition integrates into BioMarin’s operations and whether it will serve as a precedent for future business development moves by the company. The market’s response to the updated price target and the acquisition news will be monitored as BioMarin continues to execute its strategic plans. Notably, InvestingPro analysis indicates the company has achieved a perfect Piotroski Score of 9, suggesting strong financial health, while maintaining impressive revenue growth of 19.36% over the last twelve months. InvestingPro subscribers have access to over 30 additional key metrics and insights about BioMarin’s financial health and valuation status.

In other recent news, BioMarin Pharmaceutical Inc. has announced its acquisition of Inozyme Pharma Inc. in an all-cash deal valued at approximately $270 million. This strategic acquisition aims to enhance BioMarin’s enzyme therapy portfolio with INZ-701, a Phase 3 candidate for treating ENPP1 Deficiency, a rare genetic disorder. The transaction is expected to close in the third quarter of 2025, pending regulatory approval and other customary conditions. Analysts from TD Cowen have reiterated a Buy rating for BioMarin, with a price target of $120, citing the acquisition as a strategic move that complements BioMarin’s existing enzyme replacement therapy business. Evercore ISI also maintains an Outperform rating, describing the acquisition as a "savvy, low-risk/medium-reward transaction." Stifel analysts highlight the strong strategic fit of INZ-701 within BioMarin’s portfolio, noting the company’s expertise in commercialization. BioMarin estimates that INZ-701 could achieve peak sales between $400 million and $600 million, aligning with its strategy to enhance its pipeline amid competitive risks. The acquisition underscores BioMarin’s commitment to investing in innovative therapies for rare and serious genetic diseases.

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