TD Cowen maintains BioMarin stock Buy rating, $120 target

On Friday, BioMarin Pharmaceutical (TADAWUL:2070) Inc. (NASDAQ:BMRN), currently trading at $59.39 and showing strong financial health according to InvestingPro metrics, received a continued endorsement from TD Cowen, with the firm reiterating a Buy rating and a price target of $120.00. This affirmation follows BioMarin’s recent announcement of its acquisition of Inozyme Pharma (INZY) for $4 per share, amounting to a total cash transaction of $270 million. With a healthy current ratio of 5.52 and minimal debt-to-capital ratio of 0.05, BioMarin appears well-positioned to finance this acquisition. The deal centers around INZ-701, a phase 3 candidate for the treatment of ectonucleotide pyrophosphatase/phosphodiesterase 1 (ENPP1) deficiency.

TD Cowen analysts believe that the acquisition is a strategic move for BioMarin, complementing its existing enzyme replacement therapy business. The addition of INZ-701 to BioMarin’s portfolio is seen as promising, with pivotal trial data expected in 2026, potential regulatory approval anticipated in 2027, and projected peak sales of approximately $600 million.

The transaction is designed to expand BioMarin’s pipeline with a late-stage candidate that aligns with the company’s expertise in developing treatments for rare genetic diseases. The analysts at TD Cowen underscored the potential benefits of the deal, stating, "We think the deal makes strategic sense, fits with BMRN’s enzyme business, and adds a promising late-stage candidate to BMRN’s portfolio."

The focus on ENPP1 deficiency, a rare condition, is consistent with BioMarin’s history of targeting niche markets with significant unmet medical needs. The company’s strategy typically involves developing therapies for conditions with limited treatment options, thus potentially providing a substantial benefit to patients.

BioMarin’s acquisition of Inozyme Pharma is expected to enhance its research and development capabilities while potentially delivering long-term value to its shareholders. With an impressive revenue growth of 19.36% and a perfect Piotroski Score of 9 according to InvestingPro, the company demonstrates strong operational efficiency. The deal reflects BioMarin’s ongoing commitment to investing in innovative therapies that can address rare and serious genetic diseases. For deeper insights into BioMarin’s financial health and growth prospects, investors can access comprehensive Pro Research Reports available on InvestingPro, covering over 1,400 top US stocks.

In other recent news, BioMarin Pharmaceutical Inc. announced its acquisition of Inozyme Pharma in an all-cash deal valued at approximately $270 million. This strategic move centers around Inozyme’s lead asset, INZ-701, currently in phase 3 development for ENPP1 deficiency, a rare genetic disorder. The acquisition is expected to close in the third quarter of 2025, pending regulatory approval, and aims to bolster BioMarin’s enzyme replacement therapy portfolio. Analysts from Evercore ISI and Stifel have noted the acquisition as a strong strategic fit, with INZ-701 potentially achieving peak sales between $400 million and $600 million.

Additionally, BioMarin recently reported earnings that surpassed expectations, with the company confirming its full-year earnings per share guidance between $4.20 and $4.40, indicating a year-over-year growth of 19-25%. Cantor Fitzgerald maintained its Overweight rating on BioMarin, with a $90 price target, citing the company’s consistent financial performance and projected double-digit earnings growth through 2029. The company is also focusing on improving operating margins, anticipating them to exceed 40% in the coming years.

Furthermore, BioMarin has been advancing its CANOPY clinical program for VOXZOGO, which has shown promise in treating tibial bowing in children with achondroplasia. Recent data presented at endocrinology meetings highlighted significant improvements in patients, with ongoing studies expected to provide further insights. BioMarin’s strategic acquisitions and robust clinical developments underscore its commitment to expanding its pipeline and enhancing shareholder value.

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