BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) stock lost over 3.5% on 2nd August 2019 (as of 11:39 am GMT-4; Source: Google finance) as the company posted mixed results in the second quarter of FY 19. Non-GAAP income for the second quarter of 2019 decreased $2.8 million, or 14%, to $17.1 million, compared to $19.9 million for the same period in 2018. As of June 30, 2019, BioMarin had cash, cash equivalents and investments totaling approximately $1.1 billion, as compared to $1.3 billion on December 31, 2018.
BMRN in the second quarter of FY 19 has reported the adjusted earnings per share of 9 cents, beating the analysts’ estimates for the adjusted earnings per share of 17 cents, as per Zacks Investment Research. The company had reported the adjusted revenue of $387.76 million in the second quarter of FY 19, beating the analysts’ estimates for revenue by 5.63%.
Meanwhile, for Vimizim, the quarterly revenue of the $122.7 million was impacted by the limited ordering from Brazil that was partially offset by other organic growth. Naglazyme delivered $98.2 million on revenue for the second quarter, an 8% increase compared to the second quarter last year and 13% over the previous quarter. Palynziq Net Product Revenues during the second quarter of 2019 totaled $18.8 million driven primarily by new patients initiating therapy in the U.S. as the product launched in the third quarter of 2018. Aldurazyme Net Product Revenues decreased $18.2 million, due to the timing of customer acceptance for product shipped to Genzyme in the second quarter for which no revenue was recognized as of June 30, 2019.
Additionally, during the second quarter, BMRN had higher research and development (R&D) expense related to preclinical activities for our PKU gene therapy development program and clinical activities for our valoctocogene roxaparvovec and vosoritide development programs, offset by decreased R&D expense related to Palynziq for which the company began capitalizing manufacturing costs upon FDA approval in May 2018 and a decrease in tralesinidase alfa clinical manufacturing costs.
Currently, the base business is expected to produce about $1.7 billion in top-line results this year and the company is very confident it will be followed by $2 billion in commercial revenues in 2020. These estimates are based on the projected growth of the existing commercial and substantial acceleration of Palynziq revenues.
In the U.S. enrollment in Palynziq are expected to grow at a steady-state, while more and more patients reach maintenance dosing. In Europe, the company is beginning the typical country-by-country launch process that will culminate in meaningful revenues in 2020. Specific to the new product opportunities, the company plan to submit marketing applications for valrox in the fourth quarter of this year with potential approval and launch next year.