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.
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.
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.