Can Biomarin’s Strategic Pivot Unlock Long-term Growth Potential?

On the back of a solid earnings report and an ongoing internal transformation, BioMarin Pharmaceutical (NASDAQ: BMRN) could present a compelling long-term investment opportunity — one that’s hard to ignore for those seeking stability in the biotech sector.

First, let’s cover the essentials: BioMarin reported Q2 2024 earnings that beat expectations. The company posted an EPS of $0.96, far surpassing the estimated $0.57. Revenue hit $712.03 million, representing a 19.6% year-over-year increase and beating projections by 7.68%​.

Key products like Voxzogo, which treats achondroplasia, were significant drivers of this growth, with sales soaring 62.3% year-over-year to $183.9 million. Other products like Naglazyme and Vimizim also contributed to the revenue boost.

No less impressive is the fact that profit margins have more than doubled in the last year alone, going from 4.5% to 9.9%, and the company isn’t leveraged to a high degree, boasting a debt-to-equity ratio of just 0.34.

However, when it comes to price action, things aren’t looking as rosy. The stock is down some -14.36% YTD.

YTD chart for BMRN, courtesy TradingView

How did this happen? It’s quite simple — while the rate of earnings growth (37.03% per year) is outpacing both the biotech sector and the wider market average (15.35% and 17.03%, respectively), revenue is another matter entirely. 

Sluggish would perhaps be an understatement — while the forecast revenue growth of 9.5% might just barely outperform the market average of 9.45%, the average for the biotech industry is a whopping 35.19%.

So, BMRN has decided to tackle the issue head-on — with a major (and quite ambitious) internal overhaul aimed at doubling revenue and quadrupling patient reach by 2027. This will include layoffs, deprioritizing some early-stage candidate therapies, and expanding into new markets as a leaner, more efficient business.

The company has even brought in high-profile biotech executives, Greg Friberg from Amgen Inc (NASDAQ: AMGN) and James Sabry from Roche to oversee R&D and business development. 

Naturally, a shift of this magnitude tends to spook off the more risk-averse among investors. However, Wall Street analysts are quite optimistic.

The average price forecast for September 2025 is $109.30, which would represent a +28.41% gain. Of the 10 analysts who cover the stock, 7 rate it a Strong Buy, 1 rates it a Buy, and 2 rate it a Hold — with nary a Sell or Strong Sell rating in sight.

Jessica Fye of JP Morgan is among the more optimistic analysts, having set a price target of $120, which would translate to a +40.98% upswing. In her report, she noted that BMRN’s investor day presentation pipeline largely addressed concerns regarding the company's viability and ultimate worth, along with providing a realistic outlook in terms of guidance.

Time will tell whether this ambitious plan will pay off — while BioMarin's ambitious overhaul might appear risky, it's important to remember that this isn't some fledgling biotech startup — it's a company with over two decades of experience, known for bringing life-changing therapies to market. 

Once all is said and done, we’d recommend at least adding the stock to your watchlist. Should upcoming earnings releases meet expectations (particularly in terms of revenue growth) without the stock becoming much more expensive, this could be a real diamond in the rough poised for long-term growth.

—> Click here to research BMRN. You can also take a peek at our Biotech Breakthroughs for a list of companies analysts expect to be profitable within the next 3 years.

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