SAN RAFAEL, Calif.,
Aug. 1, 2019 /PRNewswire/ --
Financial
Highlights (in millions of U.S. dollars, except per share data,
unaudited)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
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%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
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$
|
387.8
|
|
|
$
|
372.8
|
|
|
4
|
%
|
|
$
|
788.5
|
|
|
$
|
746.3
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|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Product Revenues
Marketed by BioMarin (1)
|
373.3
|
|
|
343.8
|
|
|
9
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%
|
|
722.5
|
|
|
646.8
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|
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12
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%
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|
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|
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Vimizim Net Product
Revenues
|
122.7
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|
|
127.6
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|
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(4)
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%
|
|
248.5
|
|
|
244.7
|
|
|
2
|
%
|
Kuvan Net Product
Revenues
|
113.3
|
|
|
109.0
|
|
|
4
|
%
|
|
220.2
|
|
|
208.1
|
|
|
6
|
%
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Naglazyme Net Product
Revenues
|
98.2
|
|
|
91.1
|
|
|
8
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%
|
|
185.1
|
|
|
166.1
|
|
|
11
|
%
|
Palynziq Net Product
Revenues
|
18.8
|
|
|
—
|
|
|
n/a
|
|
|
31.1
|
|
|
—
|
|
|
n/a
|
|
Brineura Net Product
Revenues
|
14.8
|
|
|
10.9
|
|
|
36
|
%
|
|
27.0
|
|
|
17.8
|
|
|
52
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%
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|
|
|
|
|
|
|
|
|
|
|
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Aldurazyme Net
Product Revenues
|
5.8
|
|
|
24.0
|
|
|
(76)
|
%
|
|
51.1
|
|
|
90.1
|
|
|
(43)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
$
|
(37.4)
|
|
|
$
|
(16.8)
|
|
|
|
|
$
|
(93.9)
|
|
|
$
|
(60.9)
|
|
|
|
GAAP Net Loss per
Share – Basic and Diluted
|
$
|
(0.21)
|
|
|
$
|
(0.09)
|
|
|
|
|
$
|
(0.53)
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|
|
$
|
(0.35)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Non-GAAP
Income (2)
|
$
|
17.1
|
|
|
$
|
19.9
|
|
|
|
|
$
|
42.2
|
|
|
$
|
41.2
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
Cash, cash
equivalents and investments
|
$1,106.1
|
|
$1,320.2
|
|
|
(1)
|
Net Product Revenues
Marketed by BioMarin is the sum of revenues from Vimizim, Kuvan,
Naglazyme, Palynziq, Brineura and Firdapse, each calculated in
accordance with Generally Accepted Accounting Principles in the
United States (U.S. GAAP). Sanofi Genzyme (Genzyme) is BioMarin's
sole customer for Aldurazyme and is responsible for marketing and
selling Aldurazyme to third-parties. Refer to page 8 for a table
showing Net Product Revenues by product, including
Firdapse.
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|
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(2)
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Non-GAAP Income is
defined by the Company as reported GAAP Net Income, excluding net
interest expense, provision for (benefit from) income taxes,
depreciation expense, amortization expense, stock-based
compensation expense, contingent consideration expense and, in
certain periods, certain other specified items. Refer to Non-GAAP
Information beginning on page 9 of this press release for a
complete discussion of the Company's Non-GAAP financial information
and reconciliations to the comparable information reported under
U.S. GAAP.
|
BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) (BioMarin or the
Company) today announced financial results for the second quarter
ended June 30, 2019.
Total Net Product Revenues for the second of quarter 2019
increased to $379.1 million, compared
to $367.8 million for the second
quarter of 2018. The increase in Net Product Revenues was
attributed to the following:
- Palynziq Net Product Revenues during the second quarter of 2019
totaled $18.8 million driven
primarily by new patients initiating therapy in the U.S. as the
product launched in the third quarter of 2018. Palynziq received
approval from the U.S. Food and Drug Administration (FDA) in
May 2018 and from the European
Medicines Agency (EMA) in May 2019.
EU commercial sales are expected to commence in the third quarter
of 2019; and
- Naglazyme Net Product Revenues increased by $7.1 million, or 8%, primarily due to increased
sales volume driven by government ordering patterns from certain
Latin American and European countries, partially offset by
- Aldurazyme Net Product Revenues decreased $18.2 million, due to the timing of customer
acceptance for product shipped to Genzyme in the second quarter for
which no revenue was recognized as of June
30, 2019. Aldurazyme revenue recognition is based on timing
of Genzyme acceptance of product shipment. Approximately
$23.0 million of Aldurazyme revenue
that was shipped in the second quarter is expected to be recognized
in the third quarter of 2019 once product has been accepted by
Genzyme. The delay was due to a change in the location where
Genzyme receives product. Genzyme's Aldurazyme revenues, as
provided to BioMarin by Genzyme, increased $11.6 million or 9% during the six months ended
June 30, 2019, compared to the same
period in 2018. Full-year total Aldurazyme revenues are expected to
be consistent with full-year Aldurazyme revenues in prior years and
in the $100.0 to $120.0 million range; and
- Vimizim Net Product Revenues decreased by $4.9 million, or 4%, primarily due to decreased
sales volume driven by government ordering patterns in certain
Latin American, Middle Eastern and European countries.
The increase in GAAP Net Loss for the second quarter of 2019,
compared to the same period in 2018 was primarily due to the
following:
- higher research and development (R&D) expense related to
preclinical activities for our PKU gene therapy development program
and clinical activities for our valoctocogene roxaparvovec and
vosoritide development programs, offset by decreased R&D
expense related to Palynziq for which we began capitalizing
manufacturing costs upon FDA approval in May
2018 and a decrease in tralesinidase alfa clinical
manufacturing costs. R&D expenses in the quarter were
consistent with 2019 guidance despite the acceleration of the
valoctocogene roxaparvovec development program and subsequent
activities implemented to pursue an expedited regulatory path
forward; and
- higher intangible asset amortization related to the Palynziq
in-process research and development assets that were placed into
service following EU approval in May
2019; and
- higher selling, general and administrative (SG&A) expense
in support of the EU commercial launch and continued U.S. expansion
of Palynziq, pre-commercialization activities related to
valoctocogene roxaparvovec and increased general and administrative
expense primarily attributed to personnel-related costs resulting
from increased headcount to support our growth; partially offset
by;
- increased gross profits of $12.9
million driven by increased product sales.
The increase in GAAP Net Loss for the second quarter of 2019 did
not affect the Company's full-year GAAP Net Loss Guidance, which
remains unchanged.
Non-GAAP Income for the second quarter of 2019 decreased
$2.8 million, or 14%, to $17.1 million, compared to $19.9 million for the same period in 2018. The
decrease in Non-GAAP Income for the quarter, compared to the same
period in 2018, was attributed to higher R&D expense and
SG&A expense, partially offset by increased gross profit from
sales as described above. The decrease in Non-GAAP Income for the
second quarter of 2019 did not affect the Company's full-year
Non-GAAP Income Guidance, which remains unchanged.
As of June 30, 2019, BioMarin had cash, cash equivalents
and investments totaling approximately $1.1
billion, as compared to $1.3
billion on December 31, 2018.
Commenting on second quarter results, Jean-Jacques Bienaimé,
Chairman and Chief Executive Officer of BioMarin, said, "During the
first half of 2019 we laid the foundation for a number of
significant milestones anticipated over the coming months. We
recently announced our plans to submit marketing applications for
valoctocogene roxaparvovec gene therapy for severe hemophilia A in
both the United States and
Europe. We expect to submit both
applications in the fourth quarter of this year based on recent
interactions with health authorities in those regions. We are
pleased to have the opportunity to initiate the first review of a
marketing application for any type of hemophilia indication with a
gene therapy product. With valoctocogene roxaparvovec people
with severe hemophilia A may soon have the opportunity to
experience improved quality of life, including consequences of
bleeding, physical functioning, role functioning, emotional impact,
treatment concern, and worry. We are very grateful that
health authorities are aligned in their focus to expedite the
review of this potentially transformative treatment option given
the unmet need with current standard of care."
Mr. Bienaimé continued, "Phase 3 results from another potential
commercial product, vosoritide for the treatment of achondroplasia,
are expected to read-out at the end of this year. Our newest
study, a global Phase 2 with vosoritide in infants and young
children (less than 60 months old) with achondroplasia is enrolling
very well. We expect all subjects ages 6 months through 5
years to be enrolled by year-end. We have been very pleased with
the high-level of enthusiasm from families wanting to participate
in this program and look forward to starting enrollment in the
youngest cohort, infants up to 6 months old, later this year.
Another very significant opportunity that is gaining momentum is
the global commercialization of Palynziq. We have been very pleased
with the pace of the U.S. launch, as we ended the second quarter
with 551 patients on reimbursed Palynziq, and an additional 158
naive patients having completed enrollment and awaiting their first
injection. Building on this success and as part of our
strategy to increase our leadership in the PKU market, we
anticipate the submission of an investigational new drug
application (IND) and/or a clinical trial application (CTA) for BMN
307, our gene therapy product for PKU, in the second half of 2019.
BMN 307 demonstrated lifetime normalization of Phe in a validated
PKU mouse model, and as a result, we believe it has the potential
to be an important new treatment and market expander as part of our
PKU franchise."
2019 Full-Year
Financial Guidance unchanged (in millions, except %)
|
|
|
Item
|
2019
Guidance
|
Total
Revenues
|
$
|
1,680
|
|
to
|
$
|
1,750
|
|
Vimizim Net Product
Revenues
|
$
|
530
|
|
to
|
$
|
570
|
|
Kuvan Net Product
Revenues
|
$
|
420
|
|
to
|
$
|
460
|
|
Naglazyme Net Product
Revenues
|
$
|
350
|
|
to
|
$
|
380
|
|
Palynziq Net Product
Revenues
|
$
|
70
|
|
to
|
$
|
100
|
|
Brineura Net Product
Revenues
|
$
|
55
|
|
to
|
$
|
75
|
|
|
|
|
|
Cost of Sales (% of
Total Revenues)
|
20
|
%
|
to
|
21
|
%
|
Research and
Development Expense
|
$
|
740
|
|
to
|
$
|
780
|
|
Selling, General and
Administrative Expense
|
$
|
650
|
|
to
|
$
|
690
|
|
|
|
|
|
GAAP Net
Loss
|
$
|
(45)
|
|
to
|
$
|
(85)
|
|
Non-GAAP Income
*
|
$
|
130
|
|
to
|
$
|
170
|
|
* All Financial
Guidance items are calculated based on U.S. GAAP with the exception
of Non-GAAP Income/Loss. Refer to Non-GAAP Information beginning on
page 9 of this press release for a complete discussion of the
Company's Non-GAAP financial information and reconciliations to the
corresponding GAAP reported information.
|
Key Program Highlights
- Valoctocogene roxaparvovec gene therapy for hemophilia
A: On July 8, the Company
announced that based on recent meetings with health authorities in
the U.S. and Europe, it plans to
submit marketing applications to both the FDA and the European
Medicines Agency (EMA) in the fourth quarter of 2019 for its
investigational gene therapy, valoctocogene roxaparvovec, for
adults with severe hemophilia A.
These submissions will be based on
the updated three-year Phase 1/2 data and the recently completed
Phase 3 interim analysis of patients treated with valoctocogene
roxaparvovec material from the to-be-commercialized process.
Both submissions are expected to represent the first time a gene
therapy product for any type of hemophilia indication will be
reviewed for marketing authorization by health authorities.
The Company has chosen to cease
development of the 4e13 vg/kg dose of valoctocogene roxaparvovec
given the overwhelming preference by patients to be treated with
the 6e13 vg/kg dose. Enrollment continues in the GENEr8-1 Phase 3
study and the 52 week results are anticipated at the end of
2020.
- Palynziq for PKU: Palynziq, an injection to reduce blood
Phe concentrations in adult patients with PKU, was added to
BioMarin's commercial product portfolio upon its U.S. approval
May 2018. As of June 30, 2019, 551 patients were on reimbursed
Palynziq, with an additional 158 naïve patients enrolled and
awaiting their first treatment with commercial Palynziq. Of the 551
patients on therapy at the end of the second quarter, 410 were
formerly naïve patients and 141 transitioned from clinical studies.
Of the 125 PKU clinics in the U.S., 92 unique clinics had at least
one complete patient enrollment in the REMS program as of
June 30, 2019.
On May 6,
2019, the European Commission (EC) granted marketing
authorization for Palynziq at doses of up to 60 milligrams once
daily, to reduce blood Phe concentrations in patients with PKU aged
16 and older, who have inadequate blood Phe control (blood Phe
levels greater than 600 micromol/L) despite prior management with
available treatment options. In addition, the EC acknowledged that
the Phase 3 trial and extension study is suggestive of an
improvement in inattention and mood symptoms.
- Vosoritide for children with achondroplasia: On
June 18, 2019, the New England
Journal of Medicine published the 42 month results from the
Phase 2 study with vosoritide in children ages 5 to 14 years. The
results also appeared in the July 4
printed issue. BioMarin expects to have over 5 years of clinical
data from this Phase 2 study to corroborate maintenance of effect
at the time of anticipated marketing application submissions.
The Company expects top line
results from the ongoing global, Phase 3 study by year-end 2019.
The vosoritide development program includes four distinct areas of
focus to support global approval, including a large contemporaneous
natural history study which is underway. The global Phase 3 study,
which is fully enrolled, is a randomized, placebo-controlled study
of vosoritide in approximately 110 children with achondroplasia
between the ages of 5 to 14 years.
In 2018, BioMarin began a global
Phase 2 study with vosoritide in infants and young children
(newborn to 60 months old) with achondroplasia, to determine the
impact of treatment in this age group. Three cohorts, segmented by
age, are being enrolled in this study. Cohort 1 includes children
ages 24 to 60 months old and has completed enrollment. Cohort 2
includes children ages 6 to 24 months old and is expected to
complete enrollment by year-end. The Company plans to begin
enrolling infants up to 6 months old by year-end.
- Tralesinidase alfa (formerly referred to as BMN 250) for MPS
IIIB (Sanfilippo Syndrome, Type B): Tralesinidase alfa is
currently being evaluated in ongoing natural history and clinical
trials. Previously, encouraging signs of biochemical and clinical
efficacy have been suggested. Trials are ongoing to collect further
data in regard to the untreated natural history of the condition,
as well as biochemical and clinical outcomes of therapy.
- BMN 307 gene therapy product candidate for phenylketonuria
(PKU): As previously announced, the Company expects to submit
an IND and/or a CTA for a gene therapy product for the treatment of
PKU in the second half of 2019. At R&D Day 2018, BioMarin
shared data with BMN 307 that demonstrated a lifetime Phe
correction sustained at 80 weeks in preclinical mouse models. BMN
307 is an AAV vector containing the DNA sequence that codes for the
phenylalanine hydroxylase enzyme that is deficient in people with
PKU. Product to support clinical evaluation will be produced at
BioMarin's gene therapy manufacturing facility, where valoctocogene
roxaparvovec is currently made, using a commercial scale
manufacturing process to facilitate rapid clinical development.
- BMN 290 for Friedreich's Ataxia: The Company today
announced plans to cease the preclinical studies in the BMN 290
program based on progress of other portfolio assets that have
demonstrated stronger product profiles.
BioMarin will host a conference
call and webcast to discuss second quarter 2019 financial results
today, Thursday, August 1, 2019 at
4:30 p.m. ET. This event can be
accessed on the investor section of the BioMarin website
at www.biomarin.com.
U.S. / Canada Dial-in
Number: 866.502.9859
|
Replay Dial-in
Number: 855.859.2056
|
International Dial-in
Number: 574.990.1362
|
Replay International
Dial-in Number: 404.537.3406
|
Conference ID:
6989536
|
Conference ID:
6989536
|
About BioMarin
BioMarin is a global biotechnology company that develops and
commercializes innovative therapies for people with serious and
life-threatening rare diseases and medical conditions. The Company
selects product candidates for diseases and conditions that
represent a significant unmet medical need, have well-understood
biology and provide an opportunity to be first-to-market or offer a
significant benefit over existing products. The Company's portfolio
consists of several commercial therapies and multiple clinical and
preclinical product candidates.
For additional information, please
visit www.biomarin.com.
Forward-Looking Statements
This press release and the associated conference call and
webcast contain forward-looking statements about the business
prospects of BioMarin Pharmaceutical Inc. (BioMarin), including,
without limitation, statements about: the expectations of Total
Revenues, including Aldurazyme revenues expected to be recognized
in the third quarter of 2019 once product shipped in the second
quarter has been accepted by Sanofi Genzyme (Genzyme) and full year
Aldurazyme revenues, Net Product Revenues and expenses for
BioMarin's commercial products, Cost of Sales, GAAP Net Loss,
Non-GAAP Income and other specified income statement guidance,
including guidance for Total Revenues for the full-year; the
financial performance of BioMarin as a whole; BioMarin's potential
for growth: BioMarin anticipating significant milestones over the
coming months; the timing of BioMarin's clinical development and
commercial prospects, including (i) BioMarin's planned submissions
to regulatory authorities, including marketing authorization
applications for valoctocogene roxaparvovec in both the U.S. and
Europe and an IND and/or a CTA for
BMN 307, (ii) BioMarin's clinical studies and trials, (iii)
completion of enrollment of those studies and trials, including
enrollment in BioMarin's Phase 3 program with valoctocogene
roxaparvovec and global Phase 2 study with vosoritide, and (iv)
announcements of data from those studies and trials, including
BioMarin's Phase 3 program and Phase 1/2 study with valoctocogene
roxaparvovec and global Phase 3 study of vosoritide; the clinical
development and commercialization of BioMarin's product candidates
and commercial products, including (i) valoctocogene roxaparvovec
offering people with severe hemophilia A the opportunity to
experience improved quality of life, (ii) BioMarin's planned
submission of marketing authorization applications for
valoctocogene roxaparvovec representing the first time a gene
therapy product for any type of hemophilia will be reviewed for
marketing authorization by health authorities, (iii) product to
support clinical evaluation of BMN 307 being produced using a
commercial scale manufacturing process to facilitate rapid clinical
development and (iv) the possible approval and commercialization of
BioMarin's product candidates, including vosoritide for the
treatment of achondroplasia.
These forward-looking statements are predictions and involve
risks and uncertainties such that actual results may differ
materially from these statements. These risks and uncertainties
include, among others: BioMarin's success in the commercialization
of its commercial products; Genzyme success in continuing the
commercialization of Aldurazyme; results and timing of current and
planned preclinical studies and clinical trials, BioMarin's ability
to successfully manufacture its commercial products and product
candidates; the content and timing of decisions by the FDA, the
European Commission and other regulatory authorities concerning
each of the described products and product candidates; the market
for each of these products; actual sales of BioMarin's commercial
products; the introduction of generic versions of BioMarin's
commercial products, in particular generic versions of Kuvan; and
those factors detailed in BioMarin's filings with the Securities
and Exchange Commission (SEC), including, without limitation, the
factors contained under the caption "Risk Factors" in BioMarin's
Quarterly Report on Form 10-Q for the quarter ended March 31,
2019 as such factors may be updated by any subsequent reports.
Stockholders are urged not to place undue reliance on
forward-looking statements, which speak only as of the date hereof.
BioMarin is under no obligation, and expressly disclaims any
obligation to update or alter any forward-looking statement,
whether as a result of new information, future events or
otherwise.
BioMarin®, Brineura®, Firdapse®, Kuvan®, Naglazyme®,
Palynziq® and Vimizim® are registered trademarks of
BioMarin Pharmaceutical Inc., or its affiliates.
Aldurazyme® is a registered trademark of BioMarin/Genzyme
LLC.
Contact:
|
|
|
|
Investors:
|
|
|
Media:
|
Traci
McCarty
|
|
|
Debra
Charlesworth
|
BioMarin
Pharmaceutical Inc.
|
|
|
BioMarin
Pharmaceutical Inc.
|
(415)
455-7558
|
|
|
(415)
455-7451
|
BIOMARIN
PHARMACEUTICAL INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS June 30, 2019 and
December 31, 2018 (In thousands of U.S. dollars,
except share and per share amounts)
|
|
|
June 30,
2019 (1)
|
|
December 31,
2018 (2)
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
307,577
|
|
|
$
|
493,982
|
|
Short-term
investments
|
423,526
|
|
|
590,326
|
|
Accounts receivable,
net
|
377,150
|
|
|
342,633
|
|
Inventory
|
578,736
|
|
|
530,871
|
|
Other current
assets
|
119,779
|
|
|
98,403
|
|
Total current
assets
|
1,806,768
|
|
|
2,056,215
|
|
Noncurrent
assets:
|
|
|
|
Long-term
investments
|
374,965
|
|
|
235,864
|
|
Property, plant and
equipment, net
|
962,970
|
|
|
948,682
|
|
Intangible assets,
net
|
476,632
|
|
|
491,808
|
|
Goodwill
|
197,039
|
|
|
197,039
|
|
Deferred tax
assets
|
475,554
|
|
|
460,952
|
|
Other
assets
|
99,456
|
|
|
36,568
|
|
Total
assets
|
$
|
4,393,384
|
|
|
$
|
4,427,128
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
429,502
|
|
|
$
|
437,290
|
|
Short-term contingent
consideration
|
9,926
|
|
|
85,951
|
|
Total current
liabilities
|
439,428
|
|
|
523,241
|
|
Noncurrent
liabilities:
|
|
|
|
Long-term convertible
debt, net
|
839,165
|
|
|
830,417
|
|
Long-term contingent
consideration
|
50,151
|
|
|
46,883
|
|
Other long-term
liabilities
|
103,686
|
|
|
58,647
|
|
Total
liabilities
|
1,432,430
|
|
|
1,459,188
|
|
Stockholders'
equity:
|
|
|
|
Common stock, $0.001
par value: 500,000,000 shares authorized; 179,433,316
and 178,252,954
shares issued and outstanding, respectively.
|
179
|
|
|
178
|
|
Additional paid-in
capital
|
4,744,316
|
|
|
4,669,926
|
|
Company common stock
held by Nonqualified Deferred Compensation Plan
|
(10,211)
|
|
|
(13,301)
|
|
Accumulated other
comprehensive income
|
17,439
|
|
|
5,271
|
|
Accumulated
deficit
|
(1,790,769)
|
|
|
(1,694,134)
|
|
Total stockholders'
equity
|
2,960,954
|
|
|
2,967,940
|
|
Total liabilities and
stockholders' equity
|
$
|
4,393,384
|
|
|
$
|
4,427,128
|
|
(1)
|
As of January 1,
2019, the Company adopted the requirements of Accounting Standards
Codification 842, Leases, using the modified
retrospective method as of the effective date, and as a result,
Other Assets and Liabilities are not comparable to the prior
periods presented.
|
|
(2)
|
December 31,
2018 balances were derived from the audited Consolidated Financial
Statements included in the Company's Annual Report on Form 10-K for
the year ended December 31, 2018, filed with the U.S.
Securities and Exchange Commission (SEC) on February 28,
2018.
|
BIOMARIN
PHARMACEUTICAL INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Six
Months Ended June 30, 2019 and 2018
(In thousands of
U.S. dollars, except per share amounts)
(unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
Net product
revenues
|
$
|
379,075
|
|
|
$
|
367,786
|
|
|
$
|
773,558
|
|
|
$
|
736,885
|
|
Royalty and other
revenues
|
8,688
|
|
|
5,059
|
|
|
14,950
|
|
|
9,407
|
|
Total net
revenues
|
387,763
|
|
|
372,845
|
|
|
788,508
|
|
|
746,292
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
Cost of
sales
|
77,436
|
|
|
79,019
|
|
|
166,618
|
|
|
161,352
|
|
Research and
development
|
185,641
|
|
|
175,582
|
|
|
369,232
|
|
|
359,530
|
|
Selling, general and
administrative
|
160,754
|
|
|
153,280
|
|
|
322,912
|
|
|
291,616
|
|
Intangible asset
amortization and contingent
consideration
|
20,286
|
|
|
10,227
|
|
|
40,051
|
|
|
23,429
|
|
Gain on sale of
intangible assets
|
(15,000)
|
|
|
(20,000)
|
|
|
(15,000)
|
|
|
(20,000)
|
|
Total operating
expenses
|
429,117
|
|
|
398,108
|
|
|
883,813
|
|
|
815,927
|
|
LOSS FROM
OPERATIONS
|
(41,354)
|
|
|
(25,263)
|
|
|
(95,305)
|
|
|
(69,635)
|
|
|
|
|
|
|
|
|
|
Equity in the loss of
BioMarin/Genzyme LLC
|
(44)
|
|
|
(107)
|
|
|
(229)
|
|
|
(39)
|
|
Interest
income
|
5,899
|
|
|
5,569
|
|
|
12,197
|
|
|
10,803
|
|
Interest
expense
|
(6,866)
|
|
|
(12,225)
|
|
|
(13,593)
|
|
|
(23,787)
|
|
Other income,
net
|
470
|
|
|
2,849
|
|
|
2,078
|
|
|
2,677
|
|
LOSS BEFORE INCOME
TAXES
|
(41,895)
|
|
|
(29,177)
|
|
|
(94,852)
|
|
|
(79,981)
|
|
Benefit from income
taxes
|
(4,460)
|
|
|
(12,385)
|
|
|
(944)
|
|
|
(19,040)
|
|
NET
LOSS
|
$
|
(37,435)
|
|
|
$
|
(16,792)
|
|
|
$
|
(93,908)
|
|
|
$
|
(60,941)
|
|
NET LOSS PER
SHARE, BASIC AND DILUTED
|
$
|
(0.21)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.53)
|
|
|
$
|
(0.35)
|
|
Weighted average
common shares outstanding, basic and diluted
|
179,048
|
|
|
176,873
|
|
|
178,662
|
|
|
176,405
|
|
The following table presents Net Product Revenues by
Product:
Net Product
Revenues by Product
(In millions of
U.S. dollars)
(unaudited)
|
|
|
Three Months
Ended June 30,
|
|
Six Months
Ended June 30,
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
Brineura
|
$
|
14.8
|
|
|
$
|
10.9
|
|
|
36
|
%
|
|
$
|
27.0
|
|
|
$
|
17.8
|
|
|
52
|
%
|
Firdapse
|
5.5
|
|
|
5.2
|
|
|
6
|
%
|
|
10.6
|
|
|
10.1
|
|
|
5
|
%
|
Naglazyme
|
98.2
|
|
|
91.1
|
|
|
8
|
%
|
|
185.1
|
|
|
166.1
|
|
|
11
|
%
|
PKU
franchise
|
132.1
|
|
|
109.0
|
|
|
21
|
%
|
|
251.3
|
|
|
208.1
|
|
|
21
|
%
|
Vimizim
|
122.7
|
|
|
127.6
|
|
|
(4)
|
%
|
|
248.5
|
|
|
244.7
|
|
|
2
|
%
|
Net Product Revenues
Marketed by BioMarin
|
373.3
|
|
|
343.8
|
|
|
|
|
722.5
|
|
|
646.8
|
|
|
|
Aldurazyme Net
Product Revenues Marketed by Genzyme
|
5.8
|
|
|
24.0
|
|
|
(76)
|
%
|
|
51.1
|
|
|
90.1
|
|
|
(43)
|
%
|
Total Net Product
Revenues
|
$
|
379.1
|
|
|
$
|
367.8
|
|
|
|
|
$
|
773.6
|
|
|
$
|
736.9
|
|
|
|
The following table presents Net Product Revenues for the PKU
Franchise by Product:
Net Product
Revenues by Product for the PKU Franchise
(In millions of
U.S. dollars)
(unaudited)
|
|
|
Three Months
Ended June 30,
|
|
Six Months
Ended June 30,
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
Kuvan
|
$
|
113.3
|
|
|
$
|
109.0
|
|
|
4
|
%
|
|
$
|
220.2
|
|
|
$
|
208.1
|
|
|
6
|
%
|
Palynziq
|
18.8
|
|
|
—
|
|
|
n/a
|
|
|
31.1
|
|
|
—
|
|
|
n/a
|
|
Total PKU
franchise
|
$
|
132.1
|
|
|
$
|
109.0
|
|
|
21
|
%
|
|
$
|
251.3
|
|
|
$
|
208.1
|
|
|
21
|
%
|
The following table presents Genzyme's Aldurazyme Revenues:
Aldurazyme
Revenues Provided by Genzyme to BioMarin
(In millions of
U.S. dollars)
(unaudited)
|
|
|
Three Months
Ended June 30,
|
|
Six Months
Ended June 30,
|
|
2019
|
|
2018
|
|
%
Change
|
|
2019
|
|
2018
|
|
%
Change
|
Genzyme's Aldurazyme
Revenues
|
$
|
60.4
|
|
|
$
|
61.6
|
|
|
(2)
|
%
|
|
$
|
136.1
|
|
|
$
|
124.5
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Information
The results presented in this press release include both GAAP
information and Non-GAAP information. As used in this release,
Non-GAAP Income is defined by the Company as GAAP Net Loss
excluding net interest expense, provision for (benefit from) income
taxes, depreciation expense, amortization expense, stock-based
compensation expense, contingent consideration expense and, in
certain periods, certain other specified items, as detailed below
when applicable. In addition, BioMarin includes in this press
release the effects of these adjustments on certain components of
GAAP Net Loss for each of the periods presented. In this regard,
Non-GAAP Income and its components, including Non-GAAP Cost of
Sales, Non-GAAP Research and Development expenses, Non-GAAP
Selling, General and Administrative expense, Non-GAAP Intangible
Asset Amortization and Contingent Consideration, Non-GAAP Gain on
the Sale of Intangible Asset and Non-GAAP Benefit From Income Taxes
are statement of operations line items prepared on the same basis
as, and therefore components of, the overall Non-GAAP measures.
BioMarin regularly uses both GAAP and Non-GAAP results and
expectations internally to assess its financial operating
performance and evaluate key business decisions related to its
principal business activities: the discovery, development,
manufacture, marketing and sale of innovative biologic therapies.
Because Non-GAAP Income and its components are important
internal measurements for BioMarin, the Company believes that
providing this information in conjunction with BioMarin's GAAP
information enhances investors' and analysts' ability to
meaningfully compare the Company's results from period to period
and to its forward looking guidance, and to identify operating
trends in the Company's principal business. BioMarin also uses
Non-GAAP Income internally to understand, manage and evaluate its
business and to make operating decisions, and compensation of
executives is based in part on this measure.
Non-GAAP Income and its components are not meant to be
considered in isolation, as a substitute for, or superior to
comparable GAAP measures and should be read in conjunction with the
consolidated financial information prepared in accordance with
GAAP. Investors should note that the Non-GAAP information is not
prepared under any comprehensive set of accounting rules or
principles and does not reflect all of the amounts associated with
the Company's results of operations as determined in accordance
with GAAP. Investors should also note that these Non-GAAP measures
have no standardized meaning prescribed by GAAP and, therefore,
have limits in their usefulness to investors. In addition, from
time to time in the future there may be other items that the
Company may exclude for purposes of its Non-GAAP measures;
likewise, the Company may in the future cease to exclude items that
it has historically excluded for purposes of its Non-GAAP measures.
Because of the non-standardized definitions, the Non-GAAP measure
as used by BioMarin in this press release and the accompanying
tables may be calculated differently from, and therefore may not be
directly comparable to, similarly titled measures used by other
companies.
The following table presents the reconciliation of GAAP Net Loss
to Non-GAAP Income:
Reconciliation of
GAAP Net Loss to Non-GAAP Income
(In millions of
U.S. dollars)
(unaudited)
|
|
|
Three Months
Ended June 30,
|
|
Six Months
Ended
June 30,
|
|
Guidance
Year
Ending
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
December 31,
2019
|
GAAP Net
Loss
|
$
|
(37.4)
|
|
|
$
|
(16.8)
|
|
|
$
|
(93.9)
|
|
|
$
|
(60.9)
|
|
|
$
|
(45.0)
|
|
|
—
|
$
|
(85.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
1.0
|
|
|
6.7
|
|
|
1.4
|
|
|
13.0
|
|
|
—
|
|
|
—
|
10.0
|
|
Benefit from income
taxes
|
(4.5)
|
|
|
(12.3)
|
|
|
(0.9)
|
|
|
(19.0)
|
|
|
(50.0)
|
|
|
—
|
(30.0)
|
|
Depreciation
expense
|
12.9
|
|
|
13.5
|
|
|
27.9
|
|
|
29.5
|
|
|
45.0
|
|
|
—
|
60.0
|
|
Amortization
expense
|
13.4
|
|
|
7.5
|
|
|
20.9
|
|
|
15.1
|
|
|
40.0
|
|
|
—
|
55.0
|
|
Stock-based
compensation expense
|
39.8
|
|
|
38.6
|
|
|
82.6
|
|
|
75.2
|
|
|
150.0
|
|
|
—
|
175.0
|
|
Contingent
consideration expense
|
6.9
|
|
|
2.7
|
|
|
19.2
|
|
|
8.3
|
|
|
20.0
|
|
|
—
|
30.0
|
|
Gain on sale of
intangible assets
|
(15.0)
|
|
|
(20.0)
|
|
|
(15.0)
|
|
|
(20.0)
|
|
|
(30.0)
|
|
|
—
|
(45.0)
|
|
Non-GAAP
Income
|
$
|
17.1
|
|
|
$
|
19.9
|
|
|
$
|
42.2
|
|
|
$
|
41.2
|
|
|
$
|
130.0
|
|
|
—
|
$
|
170.0
|
|
The following reconciliation of the GAAP reported to the
Non-GAAP information provides the details of the effects of the
Non-GAAP adjustments on certain components of the Company's
operating results for each of the periods presented.
Reconciliation of
Certain GAAP Reported Information to Non-GAAP
Information
(In millions of
U.S. dollars)
(unaudited)
|
|
|
Three months ended
June 30,
|
|
2019
|
|
2018
|
|
|
|
Adjustments
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
Reported
|
|
Interest,
Taxes,
Depreciation
and
Amortization
|
|
Stock-Based
Compensation,
Contingent
Consideration
and Other
Adjustments
|
|
Non-GAAP
|
|
GAAP Reported
|
|
Interest,
Taxes,
Depreciation
and
Amortization
|
|
Stock-Based
Compensation,
Contingent
Consideration
and Other
Adjustments
|
|
Non-GAAP
|
Cost of
sales
|
$
|
77.4
|
|
|
$
|
—
|
|
|
$
|
(3.7)
|
|
|
$
|
73.7
|
|
|
$
|
79.1
|
|
|
$
|
—
|
|
|
$
|
(3.3)
|
|
|
$
|
75.8
|
|
Research and
development
|
185.6
|
|
|
(7.3)
|
|
|
(14.9)
|
|
|
163.4
|
|
|
175.6
|
|
|
(7.9)
|
|
|
(15.5)
|
|
|
152.2
|
|
Selling, general and
administrative
|
160.8
|
|
|
(5.6)
|
|
|
(21.2)
|
|
|
134.0
|
|
|
153.3
|
|
|
(5.6)
|
|
|
(19.8)
|
|
|
127.9
|
|
Intangible asset
amortization and contingent consideration
|
20.3
|
|
|
(13.4)
|
|
|
(6.9)
|
|
|
—
|
|
|
10.2
|
|
|
(7.5)
|
|
|
(2.7)
|
|
|
—
|
|
Gain on sale of
intangible assets
|
(15.0)
|
|
|
—
|
|
|
15.0
|
|
|
—
|
|
|
(20.0)
|
|
|
—
|
|
|
20.0
|
|
|
—
|
|
Interest expense,
net
|
(1.0)
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
(6.7)
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
Benefit from income
taxes
|
(4.5)
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
(12.3)
|
|
|
12.3
|
|
|
—
|
|
|
—
|
|
GAAP Net
Loss/Non-GAAP Income (Loss)
|
(37.4)
|
|
|
22.8
|
|
|
31.7
|
|
|
17.1
|
|
|
(16.8)
|
|
|
15.4
|
|
|
21.3
|
|
|
19.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
2019
|
|
2018
|
|
|
|
Adjustments
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Reported
|
|
Interest,
Taxes,
Depreciation
and
Amortization
|
|
Stock-Based
Compensation,
Contingent
Consideration
and Other
Adjustments
|
|
Non-GAAP
|
|
GAAP Reported
|
|
Interest,
Taxes,
Depreciation
and
Amortization
|
|
Stock-Based
Compensation,
Contingent
Consideration
and Other
Adjustments
|
|
Non-GAAP
|
Cost of
sales
|
$
|
166.6
|
|
|
$
|
—
|
|
|
$
|
(8.5)
|
|
|
$
|
158.1
|
|
|
$
|
161.4
|
|
|
$
|
—
|
|
|
$
|
(6.4)
|
|
|
$
|
155.0
|
|
Research and
development
|
369.2
|
|
|
(16.7)
|
|
|
(28.8)
|
|
|
323.7
|
|
|
359.5
|
|
|
(18.4)
|
|
|
(28.8)
|
|
|
312.3
|
|
Selling, general and
administrative
|
322.9
|
|
|
(11.2)
|
|
|
(45.3)
|
|
|
266.4
|
|
|
291.6
|
|
|
(11.1)
|
|
|
(40.0)
|
|
|
240.5
|
|
Intangible asset
amortization and contingent consideration
|
40.1
|
|
|
(20.9)
|
|
|
(19.2)
|
|
|
—
|
|
|
23.4
|
|
|
(15.1)
|
|
|
(8.3)
|
|
|
—
|
|
Gain on sale of
intangible assets
|
(15.0)
|
|
|
—
|
|
|
15.0
|
|
|
—
|
|
|
(20.0)
|
|
|
—
|
|
|
20.0
|
|
|
—
|
|
Interest expense,
net
|
(1.4)
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
(13.0)
|
|
|
13.0
|
|
|
—
|
|
|
—
|
|
Benefit from income
taxes
|
(0.9)
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
(19.0)
|
|
|
19.0
|
|
|
—
|
|
|
—
|
|
GAAP Net
Loss/Non-GAAP Income (Loss)
|
(93.9)
|
|
|
49.3
|
|
|
86.8
|
|
|
42.2
|
|
|
(60.9)
|
|
|
38.6
|
|
|
63.5
|
|
|
41.2
|
|
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SOURCE BioMarin Pharmaceutical Inc.