BioMarin Shoots Up on Roche Takeover Rumor

July 7, 2016
By Alex Keown, BioSpace.com Breaking News Staff

SAN RAFAEL, Calif. – Shares of BioMarin are climbing this afternoon on rumors Swiss pharma giant Roche was making a bid to acquire the company specializing in the development of therapies for rare diseases.

CNBC reported this morning that Roche could make a deal worth $130 to $140 per share for BioMarin, however there have been no formal proposals. Shares of BioMarin are currently trading at $87.69, but earlier today hit a high of $89.90 per share.

Neither company responded to CNBC’s request for comment on the rumors. This is not the first time Roche has been rumored to target BioMarin, CNBC said. In 2013, the Swiss drugmaker was rumored to have lined up a $15 billion proposal for the company and its orphan drug line, but no move was made.

BioMarin has a number of other promising experimental drugs in its pipeline, including BMN 190 (cerliponase alfa) for a rare neurodegenerative disease, CLN2, its phenylketonuria candidate pegvaliase, and, of course, BMN 270. In April, BioMarin reported positive preliminary data from the Phase I/II trial of BMN 270. Earlier this year Jean-Jacques Bienaimé, BioMarin’s chief executive officer, predicted 2016 to be a billion dollar year, however, the company has seen some stumbles due, in large part, to the failure of its Kyndrisa (drisapersen) program for Duchenne muscular dystrophy (DMD).

The company also faced concerns from some investors as its phenylketonuria drug pegvaliase, developed to treat the buildup of the amino acid phenylalanine in patients, received mixed results in a trial. However, BioMarin was able to breathe a sigh of relief when its late-stage treatment for Batten disease met its goal.

Analysts at TheStreet noted a number of weaknesses at BioMarin, including “feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.”

This is not the first time in recent days that BioMarin has been considered for a takeover. Paris-based Sanofi was also rumored to be looking at snapping up the company as a backup plan if its hostile takeover bid for San Francisco-based Medivation falls through.

Rumors about Roche’s interest in BioMarin were first reported on the U.K. blog, Betaville. Citing unnamed sources familiar with the matter, Betaville said Roche has been interested in approaching the company, but held off an earlier inquiry due to uncertainty how the Brexit vote would impact the market.

Last month, California-based BioMarin saw a drop in share price after it temporarily suspended recruitment for its hemophilia A trial.