Biomarin Pharmaceutical Inc. ((BMRN)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for BioMarin Pharmaceutical Inc. reflected a positive sentiment, driven by the company’s robust financial growth and strategic advancements. The expansion of VOXZOGO and strong enzyme therapy sales were highlighted as key contributors to this success. Despite some anticipated reductions in growth rates for specific enzyme products and increased SG&A expenses, the overall outlook remains optimistic due to strong revenue growth and expanded profitability.
Record Growth and Profitability
BioMarin’s full-year 2024 results surpassed market expectations with an impressive 18% year-over-year top-line growth. The non-GAAP operating margin expanded by over 900 basis points, and non-GAAP diluted earnings per share increased by a substantial 69%. These achievements underscore BioMarin’s successful execution of its growth strategy.
VOXZOGO Expansion
VOXZOGO, a treatment for achondroplasia, experienced a remarkable 56% growth year-over-year, driven by strong global demand. BioMarin plans to extend the use of VOXZOGO into hypochondroplasia by 2027, signaling continued growth potential in this segment.
Strong Enzyme Therapy Sales
The enzyme therapy business generated over $1.9 billion in 2024, marking a 12% increase from the previous year. This consistent growth across BioMarin’s marketed brands highlights the strength and resilience of its enzyme therapy portfolio.
Positive Financial Outlook for 2025
BioMarin projects total revenues between $3.1 billion and $3.2 billion for 2025, representing a 10% growth compared to 2024. The company aims to achieve a 40% non-GAAP operating margin next year, indicating a strong financial outlook.
Strong Operating Cash Flow
In 2024, BioMarin generated $573 million of operating cash flow, a significant 260% increase over 2023. The company is on track to exceed $1.25 billion in operating cash flow by 2027, showcasing its strong cash generation capabilities.
Decreased Growth Rates for NAGLAZYME and ALDURAZYME
Due to unique ordering dynamics, BioMarin anticipates lower year-over-year growth rates for NAGLAZYME and ALDURAZYME in 2025. Despite this, the overall sentiment remains positive due to the strong performance in other areas.
Increased SG&A Expenses
BioMarin reported an increase in non-GAAP SG&A expenses year-over-year, attributed to a bad debt reserve, higher VOXZOGO commercialization expenses, and costs associated with ERP implementation. These investments are seen as necessary for sustaining future growth.
Forward-Looking Guidance
BioMarin Pharmaceuticals provided an optimistic outlook for the upcoming years, with expectations of 10% revenue growth in 2025, driven by strong contributions from VOXZOGO and enzyme therapies. The company aims for a high single-digit CAGR in its enzyme therapy business and projects revenue growth to reach $4 billion by 2027, along with achieving a 40% non-GAAP operating margin.
In conclusion, BioMarin Pharmaceutical Inc. presented a positive earnings call, reflecting strong financial growth and strategic advancements. The key takeaways include significant revenue growth, expanded profitability, and promising future prospects driven by VOXZOGO’s expansion and strong enzyme therapy sales. Despite some challenges, the overall sentiment remains optimistic, positioning BioMarin for continued success in the coming years.
