Why BioMarin Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company BioMarin Pharmaceuticals (NAS: BMRN) surged 31% today after the company reported positive late-stage data for GALNS, its experimental genetic-disorder drug.
So what: BioMarin said patients with Morquio syndrome -- a rare genetic disorder that causes skeletal dysplasia and abnormal breathing -- saw improved breathing and walking after 36 to 48 weeks on GALNS, triggering plenty of analyst optimism over the drug's approval. With about 3,000 GALNS patients worldwide representing a market opportunity of roughly $500 million to $800 million, the positive results also reinforce BioMarin as a particularly tasty takeover candidate.
Now what: Management now plans to submit marketing applications for GALNS starting in the first quarter of 2013. "The GALNS clinical program is currently the highest development priority at BioMarin, and this positive Phase 3 study serves as a potentially transformative milestone for the company," said CEO Jean-Jacques Bienaime. So while BioMarin remains too speculative for average investors, today's ultra-encouraging data might make the stock an interesting pick for biotech-savvy Fools.
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The article Why BioMarin Shares Soared originally appeared on Fool.com.Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend BioMarin Pharmaceutical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.