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What’s BioMarin’s Expected Revenue Growth in 2016 and 2017?

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Nov. 20 2020, Updated 5:25 p.m. ET

Revenue expectations

Wall Street analysts expect BioMarin Pharmaceutical (BMRN) to generate $1.1 billion in fiscal 2016 and $1.3 billion in fiscal 2017. During its 2Q16 earnings call, BioMarin revised its 2016 revenue guidance. It now expects revenue to be $1.1 billion–$1.2 billion.

Vimizim is expected to remain the key contributor to BMRN’s top line. We’ll look at that drug in detail in the next part of the series. For details on order-driven Vimizim, please read BioMarin’s Key Order-Driven Drugs: Vimizim and Naglazyme.

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Net margin expectations

BioMarin has revised its non-GAAP (generally accepted accounting principles) net loss guidance for 2016 to $30 million–$50 million. The earlier estimate was $75 million–$100 million. The main reason for the reduced loss is a strong growth in sales and better management of operating expenses. For details on BioMarin’s earlier guidance, please go to BioMarin’s Guidance for 2016: The Inside Story.

Although BioMarin expects a GAAP loss in 2017, it expects to break even on a non-GAAP basis. Wall Street analysts expect its adjusted net income margin to improve to -4.2% in 2016 and to 1.1% in 2017.

In the rare disease space, BioMarin operates with other major biotechnology companies such as Alexion Pharmaceuticals (ALXN), Vertex Pharmaceuticals (VRTX) and Biogen Idec (BIIB).

The stock price of any pharmaceutical or biotechnology company depends on the success or failure of its late-stage development products. To minimize this risk, investors can opt for funds such as the First Trust NYSE Arca Biotechnology ETF (FBT). FBT has 3.4% of its holdings in BioMarin.

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