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Thursday, August 2, 2012, 5:05 pm

BioMarin first-half loss expands on higher R&D spending

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    NOVATO — BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) today reported its net loss expanded five fold in the second quarter and first half of this year, outpacing strong revenue growth.

    BioMarin’s reported net loss for the second quarter, ended June 30, was $32 million, or 27 cents per share, up from a net loss of $5.1 million, or 5 cents a share, a year before. Revenue, however, jumped 12.1 percent to $124 million in that period.

    For the first half of the year, net loss was $56.0 million, 48 cents a share, up from a net loss of $9.4 million, 9 cents a share, for the first six months of 2011.

    BioMarin attributed the losses to products in research and development and to changes in foreign currency exchange rates, which negatively affected net product second-quarter revenue for the flagship Naglazyme treatment by $1 million, which represents 2.5 percent of all sales.

    Sales were also affected by the timing of government ordering patterns, according to the company. However, Naglazyme net product revenue for the first half of 2012 increased by about 9 percent from the pace a year before.

    “Our commercial portfolio continued to perform well in the second quarter, and revenue generated from our products is helping to fund a large portion of our pipeline programs,” said Jean-Jacques Bienaimé, chief executive officer of BioMarin. ”The successful and timely execution of our R&D pipeline remains our top priority as we look forward to several key clinical program readouts in the coming months.”

    That’s when results are due back from the Phase 3 trial of the GALNS treatment for MPS IVA disease and three Phase 2 testing of the drugs PEG-PAL for PKU disorder, BMN-701 for Pompe disease and BMN-673 for solid tumors. Drugs in development include BMN-111 for Achondroplasia and BMN-190 for LINCL, or Batten disease.

    The company focuses on treatments for rare or serious diseases. Chief products are Naglazyme, Kuvan, Aldurazyme and Firdapse. BioMarin suggested the performance of those products is seen in a proforma, non-GAAP look at its finances. From that perspective, the first-half loss shrinks to $7.2 million, and the company was nearly $33 million in the black a year before.

    Non-GAAP adjusted EBITDA was a loss of $7.2 million for the six months ended June 30, 2012, compared to non-GAAP adjusted EBITDA gain of $32.9 million for the six months ended June 30, 2011. BioMarin said the non-GAAP information was useful because it “provides additional information regarding the performance of BioMarin’s core ongoing business, Naglazyme, Kuvan, Aldurazyme and Firdapse and development of its pipeline.”

    The price of BioMarin shares was $37.24 at the end of Thursday trading, down 2 percent, but crept upward in after-hours trading to $37.29.

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