BioMarin stock rating initiated at Overweight by Morgan Stanley on Voxzogo growth

Investing.com - Morgan Stanley (NYSE:MS) has assumed coverage on BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN) with an Overweight rating and a price target of $97.00, according to a research note released Thursday. The $10.96 billion market cap company, which InvestingPro analysis shows is currently trading below its Fair Value, boasts a perfect Piotroski Score of 9, indicating exceptional financial strength.

The investment bank cited the continued strong progress of Voxzogo, BioMarin’s treatment for children with achondroplasia, as a key factor in its positive outlook for the company.

Morgan Stanley also highlighted the company’s pipeline diversification in skeletal disorders, which it believes offers "attractive optionality" for future growth opportunities.

The analyst note indicated that BioMarin currently trades in-line with or modestly above its enzyme replacement therapy (ERT) business valuation, suggesting potential upside from current levels.

Morgan Stanley further stated that sentiment on BioMarin "appears to have bottomed at current levels," adding that the company is "well-positioned to inflect from strong base business execution, potential BD, and/or competitive updates that do not meet expectations and improve the opportunity for BioMarin."

In other recent news, BioMarin Pharmaceutical Inc. has completed its $270 million acquisition of Inozyme Pharma, adding the late-stage enzyme replacement therapy INZ-701 to its portfolio. This acquisition is expected to enhance BioMarin’s capabilities in enzyme replacement therapies, aligning with its existing business units. The acquisition was completed through a tender offer and subsequent merger, with Inozyme shares ceasing to trade on the Nasdaq Global Select Market. Additionally, BioMarin’s hemophilia A gene therapy, ROCTAVIAN, has shown sustained efficacy and safety five years post-treatment, with 81.3% of participants remaining off prophylactic treatment. Meanwhile, Jefferies has maintained a Buy rating on BioMarin, highlighting the company’s ongoing regulatory challenges concerning its Voxzogo orphan drug exclusivity. Stifel also upheld a Buy rating, noting BioMarin’s growth potential and strategic moves, including the recent acquisition. Bernstein increased its price target for BioMarin to $95, maintaining an Outperform rating, and expressed confidence in the strategic fit of the Inozyme acquisition. These developments reflect BioMarin’s ongoing efforts to strengthen its market position and expand its therapeutic offerings.

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