Shares of healthcare company BioMarin Pharmaceutical (NASDAQ:BMRN) jumped nearly 9% today after activist investor Elliott Investment Management built a sizable stake in the company, according to Reuters.
Reportedly, Elliott has been in talks with BioMarin for months and has poured over $1 billion into the stock. However, the exact nature of the talks and any specific demands Elliott may have put forth remained under wraps.
Focused on rare genetic disorders, BioMarin has recently seen changes at its top rung, with long-time CEO Jean-Jacques Bienaime being replaced by Alexander Hardy as President and CEO of the company, effective December 1.
Last week, BioMarin’s third-quarter revenue of $586 million and EPS of $0.21 failed to surpass the Street’s expectations despite a 15% jump in the company’s topline. So far, the company’s progress on sales of its hemophilia treatment Roctavian has failed to impress investors. The drug, approved in the U.S. in June 2023, saw sales of $0.8 million in Q3. However, Voxzogo, Vimzim, Palynziq, and Naglazyme continue to show sales growth for the company. BMRN expects to bring in $3 billion in revenue in Fiscal 2024.
Elliott has successfully achieved changes at a number of companies in the healthcare space and how its activities at BioMarin pan out remains to be seen.
What Is the Price Target for BMRN?
Overall, the Street has a Moderate Buy consensus rating on BioMarin. Following a 24% decline in the company’s shares so far this year, the average BMRN price target of $110.84 implies a hefty 45.4% potential upside in the stock.
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