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华尔街日报What's Going On With BioMarin Stock On Tuesday?
On Friday, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) agreed to acquire Amicus Therapeutics, Inc. (NASDAQ:FOLD) for a total equity value of about $4.8 billion.
"Immediately upon close, this transaction is expected to accelerate BioMarin's revenue growth and strengthen our financial outlook, delivering significant value to patients, employees, and stockholders. The transaction is expected to be accretive to Non-GAAP Diluted EPS in the first 12 months following close," said Alexander Hardy, President and Chief Executive Officer of BioMarin.
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Analyst Take
Truist Securities maintains BioMarin with a Buy and raises the price forecast from $80 to $100.
William Blair views the acquisition favorably, citing the addition of two revenue-generating rare disease therapies to BioMarin's portfolio. Analyst Sami Corwin sees a strong strategic fit, highlighting clear synergies with BioMarin's expertise in rare disease and enzyme therapy commercialization.
While the deal does not fully offset potential Voxzogo revenue pressure from competition, it meaningfully diversifies BioMarin's revenue base and carries no clinical development risk.
William Blair notes that Galafold is a more mature asset, which may limit growth, but believes BioMarin's scale and proven ability to expand diagnosis and drive patient adherence position the company to capture the remaining upside.
Analyst Corwin notes that Pompe disease affects roughly 1 in 18,000 people worldwide. Management believes each asset could generate about $1 billion in peak sales in the 2030s, supporting stronger long-term revenue growth for BioMarin. The company also expects operational synergies to accelerate growth and lift net profits.
Technical Analysis
BioMarin Pharmaceuticals Inc. (BMRN) is showing a bullish setup as it's trading significantly above its short-term moving averages, indicating positive momentum.
The stock is currently positioned well above the 20-day, 50-day, and 100-day SMAs, suggesting strength in the near term.
The RSI is at 65.54, which is considered neutral but close to overbought territory. This level indicates that while the stock has upward momentum, traders should remain cautious as it approaches the overbought threshold.
MACD is above its signal line, signaling bullish momentum for BMRN. This suggests that the current trend could continue, and traders might look for further upside in the near term.
Key support is at $52.50, and resistance is at $64.00, which are crucial levels to watch. If the stock approaches these levels, a bounce off support could indicate a continuation of the uptrend, while a break above resistance may signal a stronger bullish move.
The stock has been struggling with a longer-term bearish trend, as indicated by the 50-day SMA being below the 200-day SMA. This relationship shows that while there is short-term strength, the overall longer-term trend remains under pressure.
Looking at the 12-month performance, BMRN is down 8.23%, reflecting challenges over the past year. This decline highlights the importance of monitoring both short-term gains and the broader trend to gauge the stock's future potential.
Currently, BMRN is trading at 44.3% of its 52-week range, indicating it is closer to the lower end of that range. This positioning suggests that while there is room for growth, traders should be aware of the potential for volatility as it attempts to break through resistance levels.
The technical setup suggests a cautious optimism, but the longer-term trend remains a key consideration.
BMRN Price Action: BioMarin Pharmaceutical shares were up 2.45% at $59.37 at the time of publication on Tuesday, according to Benzinga Pro data.
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