BioMarin stock holds $105 target, acquires INZY for $270M

Published 16/05/2025, 18:12
BioMarin stock holds $105 target, acquires INZY for $270M

On Friday, BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN), a pharmaceutical company with a market capitalization of $11.37 billion and a perfect Piotroski Score of 9 according to InvestingPro, sustained its Outperform rating and a $105.00 price target from Evercore ISI. The firm’s endorsement follows BioMarin’s announcement of acquiring a company known as INZY for approximately $270 million, which includes $40 million in cash and $230 million in enterprise value (EV).

Evercore ISI views the acquisition as a strategic move, describing it as "a savvy, low-risk/medium-reward transaction." The firm believes that the purchase leaves BioMarin with considerable resources for additional business development opportunities. INZ701, the primary asset acquired in the transaction, is seen as a complementary fit within BioMarin’s existing enzyme therapy business.

The acquired ENPP1 deficiency program is noted for its sufficient clinical validation and the potential for multiple near-to-midterm catalysts. In a market where several biotech valuations have been significantly affected, Evercore ISI points out that this type of deal is what they would hope to see from BioMarin and similar companies.

Further details on the acquisition were shared, highlighting the key takeaways from follow-up management discussions. With impressive revenue growth of 19.36% and a "GREAT" financial health score from InvestingPro, Evercore ISI reiterated the Outperform rating, maintaining a positive outlook on BioMarin’s strategic direction and growth potential. The acquisition is expected to enhance BioMarin’s portfolio and contribute to its 2025 goals. Discover 8 more exclusive ProTips and comprehensive analysis in the Pro Research Report.

In other recent news, BioMarin Pharmaceutical Inc. reported strong financial results for the first quarter of 2025, surpassing Wall Street’s expectations. The company achieved earnings per share of $1.13, significantly beating the forecasted $0.70, with revenue reaching $745 million, exceeding the anticipated $741.02 million. BioMarin also announced the acquisition of Inozyme Pharma in an all-cash deal valued at approximately $270 million, which will enhance its portfolio with INZ-701, a late-stage enzyme replacement therapy. This acquisition is seen as a strategic fit by Stifel analysts and is expected to bolster BioMarin’s existing enzyme replacement therapy offerings. Additionally, Cantor Fitzgerald maintained an Overweight rating on BioMarin with a $90 price target, citing the company’s consistent financial performance and projected earnings growth. The company confirmed its full-year earnings per share guidance to be in the range of $4.20 to $4.40, indicating a year-over-year growth of 19-25%. BioMarin’s CEO, Alexander Hardy, emphasized the strategic alignment of the Inozyme acquisition, highlighting the potential of INZ-701 to be the first treatment for ENPP1 Deficiency across all age groups. BioMarin’s financial outlook remains strong, with a targeted 40% Non-GAAP Operating Margin for 2026, excluding the acquisition’s accounting impacts.

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