BioMarin Pharmaceutical Inc. (BMRN) Stock Takes a Hit After FDA Panel Criticizes Clinical Evidence for Muscular Dystrophy Treatment


BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) stock today has taken a hit in early trading after receiving negative comments from FDA advisers, who were critical of the company’s efforts in showing clinical evidence supporting their experimental Duchenne muscular dystrophy (DMD) drug, drisapersen. The panel, which consisted of independent experts, determined that the drug did not provide for any significant benefit to those suffering from DMD. In addition, it was pointed out that there were several safety concerns; most notably that the drug has been shown to potentially cause a blood-platelet deficiency for some patients.

Although the review appeared to be very negative, no ultimate decision was made as far as FDA approval goes. A final decision will be reached on December 27.The stock is down 2.61% or $2.55 after the negative news, hitting $95.25 per share. About 361,727 shares traded hands. BMRN has declined 20.46% since April 23, 2015 and is downtrending. It has underperformed by 19.44% the S&P500.

Out of 8 analysts covering BioMarin Pharmaceutical (NASDAQ:BMRN), 6 rate it “Buy”, 0 “Sell”, while 2 “Hold”. This means 75% are positive. $175 is the highest target while $119 is the lowest. The $154.30 average target is 61.99% above today’s ($95.25) stock price. BioMarin Pharmaceutical was the topic in 16 analyst reports since August 5, 2015 according to StockzIntelligence Inc. Oppenheimer initiated the stock on November 18 with “Perform” rating. RBC Capital Markets maintained it with “Buy” rating and $145 target price in an August 24 report. Wedbush maintained the shares of BMRN in a report on October 5 with “Neutral” rating. William Blair maintained the firm’s rating on August 5. William Blair has “Buy” rating and $160 price target. Finally, Cowen & Co maintained the stock with “Buy” rating in an August 25 report.

The institutional sentiment decreased to 1.27 in Q2 2015. Its down 0.20, from 1.47 in 2015Q1. The ratio turned negative, as 36 funds sold all BioMarin Pharmaceutical Inc. shares owned while 122 reduced positions. 55 funds bought stakes while 145 increased positions. They now own 156.08 million shares or 18.41% less from 191.29 million shares in 2015Q1.

Palo Alto Investors Llc holds 10.1% of its portfolio in BioMarin Pharmaceutical Inc. for 1.66 million shares. Tang Capital Management Llc owns 182,300 shares or 7.57% of their US portfolio. Moreover, Amici Capital Llc has 7.41% invested in the company for 1.49 million shares. The Quebec – Canada-based Sectoral Asset Management Inc has invested 5.51% in the stock. Baker Bros. Advisors Lp, a New York-based fund reported 4.10 million shares.

Since March 4, 2015, the stock had 0 insider purchases, and 10 insider sales for $2.43 million net activity. Bienaime Jean Jacques sold 1,000 shares worth $108,241. Ajer Jeffrey Robert sold 3,000 shares worth $450,000. Fuchs Henry J sold 1,864 shares worth $228,001. Spiegelman Daniel K sold 1,649 shares worth $201,669. The insider Davis George Eric sold 2,558 shares worth $320,415.

BioMarin Pharmaceutical Inc. develops and commercializes pharmaceuticals for serious diseases and medical conditions. The company has a market cap of $15.36 billion. The Company’s product portfolio is comprised of five approved products and multiple clinical and pre-clinical product candidates. It currently has negative earnings. The Company’s approved products are Vimizim , Naglazyme (galsulfase), Kuvan (sapropterin dihydrochloride), Aldurazyme (laronidase) and Firdapse (amifampridine phosphate).