One-glance verdict
Undervalued
$148.99 our estimate vs market $64.73
Wall Street consensus: $91.42 (-38.6% lower than our fair-value estimate)
57% below our estimate, below the bear case
Fundamentals snapshot
BioMarin Pharmaceutical Inc.
BMRN · NMS · Healthcare · Biotechnology
Current price
$64.73
52-week range
$49.26 - $70.98
Market cap
$12.53B
Balance sheet
Watch
37.57x Strong cushion
Net debt $3.33B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 5.8% last year.
- Reward Returns 1.2% on equity, ahead of 16% of its peers.
- Risk Stock trades 124.6% above its 5-year average P/E.
- Risk Insider ownership is only 0.3% (peer median: 1.1%).
What this company does
BioMarin Pharmaceutical Inc.
BioMarin is a drug company that focuses on creating treatments for rare and life-threatening genetic conditions that often have no other options. It makes its money by selling a small number of these highly specialized drugs, like Voxzogo for a form of dwarfism, which allows it to face less competition but also makes its financial health dependent on the success of just a few products.
How the company got here
BioMarin was founded in 1997 with a specific focus on developing treatments for rare genetic diseases that other pharmaceutical companies often overlook. A key turning point was the approval of its first drug, Aldurazyme, in 2003, which established its expertise in enzyme replacement therapies (a way to replace a missing or deficient enzyme in the body to treat a disease). Over the years, the company has grown by acquiring other companies and expanding its pipeline (the set of drugs a company is developing) of treatments for various rare conditions. This strategy has made it a significant player in the orphan drug market, which are medicines for rare diseases.
What it actually does
Think of BioMarin as a company that creates highly specialized medicines for people born with rare genetic conditions that can be life-threatening. These aren't everyday drugs like aspirin; they are complex treatments for small groups of patients around the world. The company handles everything from discovering and developing these drugs to getting them approved by regulators and selling them to hospitals and specialty pharmacies. Their core focus is on enzyme replacement therapies and other genetic-based treatments that address the root cause of these diseases.
Enzyme Therapies
This is BioMarin's foundational and largest business area, making up a significant portion of its revenue. It includes a portfolio of drugs that replace missing or non-functioning enzymes in patients with rare metabolic disorders, such as various types of mucopolysaccharidosis (MPS) and phenylketonuria (PKU). Hospitals and specialty pharmacies purchase these therapies, which are often administered for a patient's entire life. Products in this group include Vimizim, Naglazyme, and Palynziq, which are crucial for the company's steady cash flow (the amount of cash a company generates).
Skeletal Conditions
This is a newer but rapidly growing part of BioMarin's business, centered around its product Voxzogo. Voxzogo is a treatment for achondroplasia, the most common form of dwarfism, and represents a significant growth area for the company. Unlike the enzyme therapies, this product targets a skeletal growth disorder. The customers are still specialized physicians and hospitals who treat children with this condition, and this segment is a key part of management's strategy for future growth.
Roctavian®
This segment represents BioMarin's venture into gene therapy, a cutting-edge approach to treating genetic diseases. Roctavian is a one-time treatment for severe hemophilia A, a rare bleeding disorder. While technologically advanced, this business is smaller and more focused, with sales concentrated in the U.S., Germany, and Italy where reimbursement (the process by which insurance companies and governments pay for healthcare services) has been established. Recently, the company has decided to explore options to divest (sell off) this part of the business to focus on its other core areas.
What management is betting on now
Management's current strategy is to focus on and grow its core Enzyme Therapies and Skeletal Conditions businesses. They are aiming to expand the use of their existing drugs, like Voxzogo, for other related conditions and to bring new drugs in their pipeline to market. The company is also focused on improving its profitability by implementing a significant cost-saving program. A key part of their strategy involves divesting Roctavian to sharpen their focus on what they see as their most promising growth areas.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$203.02M
FY2024 Q4
$166.10M
FY2025 Q1
$157.63M
FY2025 Q2
$168.17M
FY2025 Q3
$340.24M
FY2025 Q4
$58.92M
FY2026 Q1
$199.73M
FY2026 Q2
$139.29M
Revenue
$989.71M
Net income
$44.76M
Diluted EPS
0.23
Operating cash flow
$168.11M
Free cash flow
$139.29M
Fetching…
Sources
Revenue
$766.21M
Net income
$105.53M
Diluted EPS
0.54
Operating cash flow
$220.65M
Free cash flow
$199.73M
Fetching…
Sources
Revenue
$874.57M
Net income
$-46.57M
Diluted EPS
-0.22
Operating cash flow
$99.64M
Free cash flow
$58.92M
Fetching…
Sources
Revenue
$776.13M
Net income
$-30.74M
Diluted EPS
-0.16
Operating cash flow
$368.69M
Free cash flow
$340.24M
Fetching…
Sources
Revenue
$825.41M
Net income
$240.53M
Diluted EPS
1.23
Operating cash flow
$185.27M
Free cash flow
$168.17M
Fetching…
Sources
Revenue
$745.14M
Net income
$185.69M
Diluted EPS
0.95
Operating cash flow
$174.39M
Free cash flow
$157.63M
Fetching…
Sources
Revenue
$747.31M
Net income
$124.94M
Diluted EPS
0.65
Operating cash flow
$185.63M
Free cash flow
$166.10M
Fetching…
Sources
Revenue
$745.74M
Net income
$106.08M
Diluted EPS
0.55
Operating cash flow
$221.48M
Free cash flow
$203.02M
Fetching…
Sources
Is it cheap or expensive?
Fair value $148.99 vs current price $64.73
Wall Street consensus is the average analyst price target: $91.42 (-38.6% lower than our fair-value estimate).
Our most-likely fair value is $148.99 a share — about 130.2% above today's price of $64.73, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $3.3B. Interest coverage 37.6x.
Net debt
$3.33B
Interest coverage
37.57x
BioMarin Pharmaceutical Inc.'s profit covers its interest bill about 37.6 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
BMRN
BASELINE
BioMarin Pharmaceutical Inc.
Total debt $4.20B Interest coverage 37.57x This is the baseline the peer rows are being compared against.
Total debt $1.98B Interest coverage 342.44x +811% vs BMRN Carries about 9.1x more debt cushion than BMRN.
Total debt $1.06B Interest coverage -17.25x -100% vs BMRN This peer has almost no interest-payment cushion compared with BMRN.
Total debt $2.99B Interest coverage 1.99x -95% vs BMRN Carries about 18.9x less debt cushion than BMRN.
Total debt $461.60M Interest coverage 5.03x -87% vs BMRN Carries about 7.5x less debt cushion than BMRN.
Total debt $38.27M Interest coverage 553.04x +1,372% vs BMRN Carries about 14.7x more debt cushion than BMRN.
What you should know
The case for and against BMRN
3 Rewards
2 Risks
Rewards
-
Revenue grew 5.8% last year.
-
Returns 1.2% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Stock trades 124.6% above its 5-year average P/E.
-
Insider ownership is only 0.3% (peer median: 1.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
174.95x
Forward P/E
9.76x
P/B
1.98x
P/S
3.68x
EV/EBITDA
24.57x
PEG ratio
0.39x
Profitability
How much profit each dollar creates
Gross margin
51.0%
Operating margin
21.2%
Net margin
2.1%
ROE
1.2%
ROA
3.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
2.39x
Quick ratio
1.16x
Total debt
$4.20B
Total cash
$874.00M
Growth
How the business has been compounding
Revenue TTM
$3.41B
Revenue 5Y CAGR
14.9%
EPS TTM
0.37
EPS 5Y CAGR
33.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$857.09M
Free CF TTM
$724.96M
FCF margin
21.3%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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