NOVATO, Calif., July 28, 2011 /PRNewswire/ --Financial Highlights ($ in millions, except per share data, unaudited)ItemQ2 2011Q2 2010 ComparisonTotal BioMarin Revenue
20.2% increase Total Net Product Revenue
21.0% increaseNaglazyme Net Product Revenue
27.5% increaseAldurazyme BioMarin Net Product Revenue*
$17.5Kuvan Net Product Revenue
16.6% increaseFirdapse Net Product Revenue
$1.1GAAP Net Income (Loss)
$(0.5)GAAP Net Income (Loss) per share
$(0.05) (basic and diluted)
$(0.00) (basic), $(0.01) (diluted)Non-GAAP Adjusted EBITDA
$17.5Non-GAAP Adjusted EBITDA per share
$0.13 (basic), $0.12 (diluted)
$0.17 (basic), $0.15 (diluted) * Net product transfer revenue had no impact on net Aldurazyme revenue to BioMarin in the second quarter of 2011 and a negative $0.2 million impact on net Aldurazyme revenue to BioMarin in the second quarter of 2010.
BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) today announced financial results for the second quarter of 2011. GAAP net loss was $5.1 million ($0.05 per diluted share) for the second quarter of 2011, compared to GAAP net loss of $0.5 million ($0.01 per diluted share) for the second quarter of 2010. Non-GAAP adjusted EBITDA was $13.9 million ($0.12 per diluted share) for the second quarter of 2011, compared to non-GAAP adjusted EBITDA of $17.5 million ($0.15 per diluted share) for the second quarter of 2010. Non-GAAP adjusted EBITDA excludes depreciation and amortization, contingent consideration expense, interest income and expense, income taxes, stock compensation expense and material non-recurring items. The reconciliation of the non-GAAP measures to the comparable GAAP measure is detailed in the table provided near the end of the press release.
GAAP net loss for the six months ended June 30, 2011 was $9.4 million ($0.09 per diluted share), compared to GAAP net income of $0.7 million ($0.01 per diluted share) for the six months ended June 30, 2010. Non-GAAP adjusted EBITDA was $32.9 million ($0.28 per diluted share) for the six months ended June 30, 2011, compared to non-GAAP adjusted EBITDA of $32.9 million ($0.30 per diluted share) for the six months ended June 30, 2010.
As of June 30, 2011, BioMarin had cash, cash equivalents and short and long-term investments totaling $412.1 million, as compared to $394.0 million at the end of March 31, 2011.
"We are very pleased with our performance in the first half of 2011," said Jean-Jacques Bienaime, Chief Executive Officer of BioMarin. "Our commercial portfolio has been growing steadily, and our pipeline has advanced significantly. We look forward to many clinical milestones over the next 18 months."
Net Product Revenue (in millions)Three Months Ended June 30,Six Months Ended June 30,20112010$ Change% Change20112010$ Change% ChangeNaglazyme (1)
26.1%Kuvan (2) 28.824.74.1
20.9%Firdapse (3) 22.214.171.124
100%+(1) Changes in foreign currency rates, net of hedges, had a $1.1 million and $1.2 million positive impact on Naglazyme sales in the three months and six months ended June 30, 2011, respectively. Naglazyme revenues experience quarterly fluctuations due to the timing of government ordering patterns in certain countries.
(2) The quantity of commercial tablets dispensed to patients in the U.S., increased 16.2 percent in the second quarter of 2011 compared to the second quarter of 2010 and increased 9.1 percent in the second quarter of 2011 compared to the first quarter of 2011.
(3) A product for the treatment of Lambert Eaton Myasthenic Syndrome (LEMS) which was launched in the EU in April 2010. Three Months Ended June 30, Six Months Ended June 30, 20112010$ Change% Change 20112010$ Change% Change Aldurazyme revenue reported by Genzyme (4)
4.4%Royalties due from Genzyme17.317.7(0.4)34.033.70.3Incremental (previously recognized) -(0.2)0.22.0(2.0)4.0Total Aldurazyme net product revenues (5)
4.3(4) Changes in foreign currency rates caused an increase to Aldurazyme sales by Genzyme of $3.1 million in the three months ended June 30, 2011 and an increase to Aldurazyme sales by Genzyme of $3.5 million for the six months ended June 30, 2011.
(5) To the extent units shipped to third party customers by Genzyme exceeded BioMarin inventory transfers to Genzyme, BioMarin will record a decrease in net product revenue from the royalty payable to BioMarin for the amount of previously recognized product transfer revenue. If BioMarin inventory transfers exceed units shipped to third party customers by Genzyme, BioMarin will record incremental net product transfer revenue for the period.
2011 Guidance Revenue Guidance ($ in millions)Item
Previous 2011 GuidanceTotal BioMarin Revenues
$436 to $465
$422 to $452Total Net Product Revenues
$429 to $458
$416 to $446Naglazyme Net Product Revenue
$225 to $240
$211 to $225Kuvan Net Product Revenue
$112 to $120Aldurazyme Net Product Revenue to BioMarin
$79 to $83Firdapse Net Product Revenue
$13 to $15
$14 to $18Selected Income Statement Guidance ($ in millions)Item
Previous 2011 GuidanceCost of Sales (% of Total Revenue)
18% to 20%Selling, General and Admin. Expense
$164 to $174Research and Development Expense
$200 to $205
$195 to $205Amortization and Contingent Consideration
$3Income Tax Expense (Benefit)
$15GAAP Net Income (Loss)
$(43) to $(33)
$(52) to $(42)Stock Compensation Expense
$43Non-GAAP Adjusted EBITDA
$49 to $59
$51 to $61Anticipated Upcoming Milestones3Q 2011/4Q 2011: Top-line results for Phase II trial for PEG-PAL, including daily dosing and formulation studies
1Q 2012/2Q 2012: Initiation of Phase III trial for PEG-PAL
1Q 2012: Initiation of Phase I trial for BMN-111 for Achondroplasia
2H 2012: Top-line results for Phase III trial for GALNS for MPS IVA
2H 2012: Top-line results for PKU-016 Kuvan neurocognitive study
2H 2012: Top-line results for Phase I/II trial for BMN-701 for Pompe disease
4Q 2012/1Q 2013: Market authorization application filings for GALNS for MPS IVA
1Q 2013-3Q 2013: 510k clearance and commercial availability of the handheld blood Phe monitor for PKU
Research and Development ProgramsBioMarin continues to make significant investments in research and development to ensure persistent growth of the company. The current pipeline includes programs in various stages of development that are focused on treating a range of serious unmet medical needs.Advanced Clinical Programs
Mid-Stage Clinical Programs
Early-Stage Clinical Programs
Non-GAAP Financial Information and ReconciliationThe above results for the three and six months ended June 30, 2011 and June 30, 2010 and financial guidance for the year ending December 31, 2011 are presented both as determined in accordance with GAAP and on a non-GAAP basis. As used in this release, non-GAAP income is based on GAAP Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) adjusted to exclude non-cash stock compensation expense, contingent consideration expense and certain nonrecurring material items (adjusted EBITDA).
The following tables detail the reconciliation of non-GAAP to GAAP financial metrics:
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA(in millions)(unaudited)Three Months EndedJune 30, Six Months EndedJune 30, Year EndingDecember 31, 2011 NOTES2011201020112010Guidance GAAP Net Income (Loss)$ (5.1)$ (0.5)$ (9.4)$ 0.7 $(43) - $(33) Interest expense, net1.3
6Income tax expense3.9
4EBITDA 7.47.516.514.6 6 - 16 Stock-based compensation10.6
45Gain on sale of equity investments-(0.9)
(2)Adjusted EBITDA$ 13.9$ 17.5$ 32.9$ 32.9 $49 - $59 (1) Represents the changes in the fair value of contingent acquisition consideration payable for the period. BioMarin believes that this non-GAAP information is useful to investors, taken in conjunction with BioMarin's GAAP information because it provides additional information regarding the performance of BioMarin's core ongoing business, Naglazyme, Kuvan, Aldurazyme and Firdapse and development of its pipeline. By providing information about both the overall GAAP financial performance and the non-GAAP measures that focus on continuing operations, the company believes that the additional information enhances investors' overall understanding of the company's business and prospects for the future. Further, the company uses both the GAAP and the non-GAAP results and expectations internally for its operating, budgeting and financial planning purposes and uses the adjusted EBITDA methodology in establishing corporate goals for internal compensation programs.
Diluted Earnings Per Share Calculation The calculation of GAAP diluted earnings per share for both the three and six months ended June 30, 2011 and 2010 excludes 19.1 million and 26.3 million shares, respectively, related to the outstanding convertible debt as their impact is considered antidilutive. Additionally, all other potentially issuable shares were considered antidilutive under the Treasury method, including stock options, restricted stock, potential future ESPP shares and shares in the Nonqualified Deferred Compensation Plan.
The calculation of non-GAAP adjusted EBITDA earnings per share for the three and six months ended June 30, 2011 excludes 172,000 shares related to common stock issued to the Nonqualified Deferred Compensation Plan, and 3.2 million shares related to a portion of the outstanding convertible debt for just the three months ended June 30, 2011 as their impact is considered antidilutive. No potentially dilutive shares were excluded in the calculation of the non-GAAP adjusted EBITDA earnings per share for the three and six months ended June 30, 2010.
Conference Call DetailsBioMarin will host a conference call and webcast to discuss second quarter 2011 financial results today, Thursday, July 28, at 5:00 p.m. ET. This event can be accessed on the investor section of the BioMarin website at www.BMRN.com.Date: July 28, 2011Time: 5:00 p.m. ET U.S. / Canada Dial-in Number: 866.761.0748International Dial-in Number: 617.614.2706Participant Code: 79527137Replay Dial-in Number: 888.286.8010Replay International Dial-in Number: 617.801.6888Replay Code: 97774602About BioMarinBioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company's product portfolio comprises four approved products and multiple clinical and pre-clinical product candidates. Approved products include Naglazyme® (galsulfase) for mucopolysaccharidosis VI (MPS VI), a product wholly developed and commercialized by BioMarin; Aldurazyme® (laronidase) for mucopolysaccharidosis I (MPS I), a product which BioMarin developed through a 50/50 joint venture with Genzyme Corporation; Kuvan® (sapropterin dihydrochloride) Tablets, for phenylketonuria (PKU), developed in partnership with Merck Serono, a division of Merck KGaA of Darmstadt, Germany; and Firdapse™ (amifampridine), which has been approved by the European Commission for the treatment of Lambert Eaton Myasthenic Syndrome (LEMS). Product candidates include GALNS (N-acetylgalactosamine 6-sulfatase), which is currently in Phase III clinical development for the treatment of MPS IVA, amifampridine phosphate (3,4-diaminopyridine phosphate), which is currently in Phase III clinical development for the treatment of LEMS in the U.S., PEG-PAL (PEGylated recombinant phenylalanine ammonia lyase), which is currently in Phase II clinical development for the treatment of PKU, BMN 701, a novel fusion protein of insulin-like growth factor 2 and acid alpha glucosidase (IGF2-GAA), which is currently in Phase I/II clinical development for the treatment of Pompe disease, and BMN 673, a poly ADP-ribose polymerase (PARP) inhibitor, which is currently in Phase I/II clinical development for the treatment of genetically-defined cancers. For additional information, please visit www.BMRN.com. Information on BioMarin's website is not incorporated by reference into this press release.Forward-Looking StatementThis press release contains forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc., including, without limitation, including, without limitation, statements about: the expectations of revenue and sales related to Naglazyme, Kuvan, Firdapse, and Aldurazyme; the financial performance of the BioMarin as a whole; the timing of BioMarin's clinical trials of GALNS, Firdapse, PEG-PAL, BMN-673 , BMN-701 and other product candidates; the continued clinical development and commercialization of Aldurazyme, Naglazyme, Kuvan, Firdapse, and its product candidates; and actions by regulatory authorities. 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: our success in the continued commercialization of Naglazyme, Kuvan, and Firdapse; Genzyme Corporation's success in continuing the commercialization of Aldurazyme; results and timing of current and planned preclinical studies and clinical trials, particularly with respect to GALNS, Firdapse, PEG-PAL, BMN 673 and BMN 701; our ability to successfully manufacture our products and product candidates; the content and timing of decisions by the U.S. Food and Drug Administration, the European Commission and other regulatory authorities concerning each of the described products and product candidates; the market for each of these products and particularly Aldurazyme, Naglazyme, Kuvan and Firdapse; actual sales of Aldurazyme, Naglazyme Kuvan and Firdapse; Merck Serono's activities related to Kuvan; and those factors detailed in BioMarin's filings with the Securities and Exchange Commission, including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's 2010 Annual Report on Form 10-K, and the factors contained in BioMarin's reports on Form 10-Q. 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®, Naglazyme®, Kuvan® and Firdapse™ are registered trademarks of BioMarin Pharmaceutical Inc.
Aldurazyme® is a registered trademark of BioMarin/Genzyme LLC.
Bob PurcellBioMarin Pharmaceutical Inc.
BioMarin Pharmaceutical Inc.(415) 506-6570
(415) 506-3267BIOMARIN PHARMACEUTICAL INC.CONSOLIDATED BALANCE SHEETS(In thousands of U.S. dollars, except share and per share amounts)June 30, 2011December 31,
2010 (1)ASSETS(Unaudited)Current assets:Cash and cash equivalents
186,033Accounts receivable, net (allowance for doubtful accounts; $969 and $63, respectively)
109,698Other current assets
33,874Total current assets
504,260Investment in BioMarin/Genzyme LLC
128,171Property, plant and equipment, net
221,866Intangible assets, net
53,364Long-term deferred tax assets
1,262,623LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued liabilities
83,844Total current liabilities
377,521Other long-term liabilities
545,366Stockholders' equity:Common stock, $0.001 par value: 250,000,000 shares authorized at June 30, 2011 and December 31, 2010 : 111,564,800 and 110,634,465 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively
111Additional paid-in capital
1,090,188Company common stock held by Nonqualified Deferred Compensation Plan
(1,965Accumulated other comprehensive income (loss)
(371,265Total stockholders' equity
717,257Total liabilities and stockholders' equity
1,262,623(1) December 31, 2010 balances were derived from the audited consolidated financial statements.BIOMARIN PHARMACEUTICAL INC.CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three and Six Months Ended June 30, 2011 and 2010(In thousands, except for per share data)(Unaudited) Three Months Ended June 30, Six Months Ended June 30,2011201020112010REVENUES:Net product revenues$
174,665Collaborative agreement revenues153176278377Royalty and license revenues8621,1821,1171,861Total revenues110,63191,950220,087176,903OPERATING EXPENSES:Cost of sales (excludes amortization of developed product technology)19,26314,40140,05931,813Research and development52,90935,64997,88965,746Selling, general and administrative41,01537,27782,08971,277Intangible asset amortization and contingent consideration(3,324)1,580(3,012)2,234Total operating expenses109,86388,907217,025171,070INCOME FROM OPERATIONS7683,0433,0625,833Equity in the loss of BioMarin/Genzyme LLC(667)(864)(1,209)(1,555)Interest income7981,0351,5802,225Interest expense(2,072)(2,635)(4,213)(5,064)Net gain from sale of investments---927INCOME (LOSS) BEFORE INCOME TAXES(1,173)579(780)2,366Provision for income taxes3,9041,0568,6681,692NET INCOME (LOSS)$
674NET INCOME (LOSS) PER SHARE, BASIC $
0.01NET INCOME (LOSS) PER SHARE, DILUTED$
0.01Weighted average common shares outstanding, basic111,114101,712110,884101,431Weighted average common shares outstanding, diluted111,114101,834110,884104,347STOCK-BASED COMPENSATION EXPENSEThree Months EndedSix Months EndedJune 30, June 30, 2011201020112010(unaudited)(unaudited)(unaudited)(unaudited)Cost of sales
1,809Research and development4,0243,4427,6986,623Selling, general and administrative5,4564,94310,7609,279$
|SOURCE BioMarin Pharmaceutical Inc.|
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