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BioMarin Announces Fourth Quarter and Full Year 2017 Financial Results Financial Highlights (in millions of U.S. dollars, except per share data, unaudited) Three Months Ended December 31, Twelve Months Ended December 31, ...

Key Takeaway: SAN RAFAEL, Calif. , Feb. 22, 2018 /PRNewswire/ -- BioMarin Pharmaceutical Inc. (NASDAQ: BMRN ) today announced financial results for the fourth quarter and year ended December 31, 2017 . For the quarter ended December 31, 2017 GAAP Net Loss was $51.4 million , or $0.29 and $0.3

Full Press Release Details

SAN RAFAEL, Calif. , Feb. 22, 2018 /PRNewswire/ --
Financial Highlights (in millions of U.S. dollars, except per share data, unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
2017 2016 % Change 2017 2016 % Change
Total Revenues $ 358.3 $ 300.1 19% $ 1,313.6 $ 1,116.9 18%
Aldurazyme Net Product Revenues 28.3 35.0 (19)% 90.0 93.8 (4)%
Brineura Net Product Revenues 5.2 n/a 8.6 n/a
Kuvan Net Product Revenues 107.4 90.2 19% 407.5 348.0 17%
Naglazyme Net Product Revenues 93.8 74.9 25% 332.2 296.5 12%
Vimizim Net Product Revenues 114.0 93.8 22% 413.3 354.1 17%
GAAP Net Loss $ (51.4) $ (90.7) $ (117.0) $ (630.2)
GAAP Net Loss per Share - Basic (0.29) (0.53) (0.67) (3.80)
GAAP Net Loss per Share - Diluted (0.30) (0.53) (0.67) (3.81)
Non-GAAP Income (Loss) (1) $ 5.2 $ (27.5) $ 74.0 $ (36.5)
December 31, December 31,
2017 2016
Cash, cash equivalents and investments $ 1,781.7 $ 1,362.4
BioMarin Pharmaceutical Inc. (NASDAQ: BMRN ) today announced financial results for the fourth quarter and year ended December 31, 2017 . For the quarter ended December 31, 2017 GAAP Net Loss was $51.4 million , or $0.29 and $0.30 per basic and diluted share, respectively, compared to GAAP Net Loss of $90.7 million , or $0.53 per basic and diluted share, respectively, for the quarter ended December 31, 2016 . GAAP Net Loss for the year ended December 31, 2017 was $117.0 million , or $0.67 per basic and diluted share, respectively, compared to GAAP Net Loss of $630.2 million , or $3.80 and $3.81 per basic and diluted share, respectively, for the year ended December 31, 2016 . The reduction in GAAP Net Loss year over year was primarily due to increased net product revenues for Kuvan, Naglazyme and Vimizim, the $31.5 million net upfront license payment received from Sarepta Therapeutics Inc. (Sarepta) in connection with the settlement of the Company's patent proceedings against Sarepta, the $125.0 million gain on sale of intangible assets related to the sale of the Priority Review Voucher, and the absence of the impairment of intangible assets associated with the discontinuance of the Kyndrisa and reveglucosidase alfa programs in 2016, partially offset by an increase in the provision for income taxes related to the impact of the Tax Cuts and Jobs Act on the Company's operating results.
Non-GAAP Income for the three months ended December 31, 2017 was $5.2 million , compared to Non-GAAP Loss of $27.5 million for the three months ended December 31, 2016 . Non-GAAP Income for the year ended December 31, 2017 was $74.0 million , compared to Non-GAAP Loss of $36.5 million for the year ended December 31, 2016 .
Total Revenues were $1.3 billion for the year ended December 31, 2017 compared to $1.1 billion for the year ended December 31, 2016 , an increase of 18%. For the year ended December 31, 2017 , Kuvan net product revenues increased 17% year over year. Growth was driven by a 7% increase in the number of commercial patients on Kuvan therapy in North America resulting in 21% revenue growth in that region. For the year ended December 31, 2017 , Vimizim net product revenues increased by 17% year over year, due primarily to an increase of 20% in the number of Vimizim commercial patients. Naglazyme net product revenues increased 12% year over year during the year ended December 31, 2017 . The number of Naglazyme commercial patients increased 6% year over year.
As of December 31, 2017, BioMarin had cash, cash equivalents and investments totaling approximately $1.8 billion , as compared to $1.4 billion on December 31, 2016 .
Commenting on the year and the quarter, Jean-Jacques Bienaimé, Chairman and Chief Executive Officer of BioMarin, said, "2017 was a momentous year for BioMarin driven by numerous financial, regulatory and clinical achievements. We reduced our GAAP Net Loss and achieved our goal of Non-GAAP profitability for the full year supported by continued strong demand for our commercial products. On the regulatory front, during the first half of 2017, we received U.S. and EU approval of our sixth commercial product, Brineura, the first treatment approved for CLN2 disease. Our late-stage clinical programs all advanced as expected, including vosoritide, pegvaliase and valoctocogene roxaparvovec (formerly referred to as BMN 270). In addition to receiving PRIME and Breakthrough Therapy designations for valoctocogene roxaparvovec gene therapy for severe hemophilia A, we shared new 1.5 year results demonstrating sustained FVIII levels within the normal range. This achievement led to the start of our global GENEr8–1 and GENEr8-2 Phase 3 studies for the treatment of patients with severe hemophilia A."
Mr. Bienaimé continued, "With pegvaliase, we were pleased to have submitted our Biologics License Application in June, which was filed for review by the FDA and received a Priority Review designation. We anticipate FDA action on our Biologics License Application for pegvaliase at the end of May 2018 , In addition, we plan to submit our Marketing Authorization Application for pegvaliase in Europe in the first quarter of 2018. Finally, we shared many significant updates at our R&D Day in the fourth quarter, including the announcement of our next IND candidate BMN 290 for Friedriech's ataxia, a rare neurologic disorder that affects nearly 15,000 people worldwide. We were also pleased to share that vosoritide for achondroplasia demonstrated a sustained increase in annualized growth rate at 30 months of treatment. We begin 2018 poised to move our 5 potential new product candidates to their next stage of clinical or regulatory development while driving top line revenues from our six commercialized products."
Revenues (in millions of U.S. dollars, unaudited)
Total Revenues
Three Months Ended December 31, Twelve Months Ended December 31,
2017 2016 $ Change % Change 2017 2016 $ Change % Change
Aldurazyme $ 28.3 $ 35.0 $ (6.7) (19)% $ 90.0 $ 93.8 $ (3.8) (4)%
Brineura 5.2 5.2 n/a 8.6 8.6 n/a
Firdapse 4.8 4.3 0.5 12% 18.8 18.0 0.8 4%
Kuvan (1) 107.4 90.2 17.2 19% 407.5 348.0 59.5 17%
Naglazyme (2) 93.8 74.9 18.9 25% 332.2 296.5 35.7 12%
Vimizim (2) 114.0 93.8 20.2 22% 413.3 354.1 59.2 17%
Net Product Revenues 353.5 298.2 55.3 19% 1,270.4 1,110.4 160.0 14%
Royalty and other revenues 4.8 1.9 2.9 43.2 6.5 36.7
Total revenues $ 358.3 $ 300.1 $ 58.2 19% $ 1,313.6 $ 1,116.9 $ 196.7 18%
(1) Kuvan revenue growth was driven by a 7% increase in the number of commercial patients on Kuvan therapy in the U.S.
(2) Naglazyme and Vimizim net product revenues experience quarterly fluctuations primarily due to the timing of government ordering patterns in certain countries.
Details of Net Product Revenues Attributable to Aldurazyme
Three Months Ended December 31, Twelve Months Ended December 31,
2017 2016 $ Change % Change 2017 2016 $ Change % Change
Aldurazyme revenue reported by Genzyme $ 57.5 $ 54.8 $ 2.7 5 % $ 233.8 $ 223.3 $ 10.5 5 %
Three Months Ended December 31, Twelve Months Ended December 31,
2017 2016 $ Change 2017 2016 $ Change
Revenues earned based on Genzyme net sales $ 27.9 $ 26.9 $ 1.0 $ 102.1 $ 98.1 $ 4.0
Net product transfer revenues (3) 0.4 8.1 (7.7) (12.1) (4.3) (7.8)
Total Aldurazyme net product revenues $ 28.3 $ 35.0 $ (6.7) $ 90.0 $ 93.8 $ (3.8)
2018 Financial Guidance
Full-year Revenue Guidance ($ in millions)
Item
2018 Guidance
Total Revenues $1,470 to $1,530
Kuvan Net Product Revenues $440 to $480
Naglazyme Net Product Revenues $325 to $355
Vimizim Net Product Revenues $460 to $500
Brineura Net Product Revenues $35 to $55
Select Full-year Income Statement Guidance ($ in millions, except percentages)
Item
2018 Guidance
Cost of Sales (% of Total Revenues) 20.0% to 21.0%
Research and Development Expense $645 to $685
Selling, General and Admin. Expense $575 to $615
GAAP Net Loss $(115) to $(165)
Non-GAAP Income $100 to $140
* All Financial Guidance items are calculated based on Generally Accepted Accounting Principles (GAAP) with the exception of Non-GAAP Income. Refer to Non-GAAP Information beginning on page 10 of this press release for a complete discussion of the Company's Non-GAAP financial information and reconciliations to the comparable GAAP reported information.
Key Program Highlights
Conference Call Details
BioMarin will host a conference call and webcast to discuss third quarter 2017 financial results today, Thursday, February 22, 2018 at 4:30 p.m. ET . This event can be accessed on the investor section of the BioMarin website at www.biomarin.com .
U.S. / Canada Dial-in Number: 866.502.9859 Replay Dial-in Number: 855.859.2056
International Dial-in Number: 574.990.1362 Replay International Dial-in Number: 404.537.3406
Conference ID: 5289587 Conference ID: 5289587
About BioMarin BioMarin is a global biotechnology company that develops and commercializes innovative therapies for patients with serious and life-threatening rare and ultra-rare genetic diseases. The Company's portfolio consists of six approved products and multiple clinical and pre-clinical product candidates. For additional information, please visit www.biomarin.com .
BioMarin ® , Brineura ® , Firdapse ® , Kuvan ® , Naglazyme ® and Vimizim ® are registered trademarks of BioMarin Pharmaceutical Inc., or its affiliates. Kyndrisa TM is a trademark of BioMarin Pharmaceutical Inc. Aldurazyme ® is a registered trademark of BioMarin/Genzyme LLC.
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2017 and December 31, 2016
(In thousands of U.S. dollars, except share and per share amounts)
December 31, 2017 December 31, 2016(1)
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 598,028 $ 408,330
Short-term investments 797,940 381,347
Accounts receivable, net 261,365 215,280
Inventory 475,775 355,126
Other current assets 74,036 61,708
Total current assets 2,207,144 1,421,791
Noncurrent assets:
Long-term investments 385,785 572,711
Property, plant and equipment, net 896,700 798,768
Intangible assets, net 517,510 553,780
Goodwill 197,039 197,039
Deferred tax assets 399,095 446,786
Other assets 29,852 32,815
Total assets $ 4,633,125 $ 4,023,690
LIABILITIES AND STOCKHOLDERS ' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 401,921 $ 370,505
Short-term convertible debt, net 360,949 22,478
Short-term contingent acquisition consideration payable 53,648 46,327
Total current liabilities 816,518 439,310
Noncurrent liabilities:
Long-term convertible debt, net 813,521 660,761
Long-term contingent acquisition consideration payable 135,318 115,310
Other long-term liabilities 59,105 42,034
Total liabilities 1,824,462 1,257,415
Stockholders' equity:
Common stock, $0.001 par value: 500,000,000 and 250,000,000 shares authorized, respectively; 175,843,749 and 172,647,588 shares issued and outstanding, respectively. 176 173
Additional paid-in capital 4,483,220 4,288,113
Company common stock held by Nonqualified Deferred Compensation Plan (the NQDC) (14,224) (14,321)
Accumulated other comprehensive income (loss) (22,961) 12,816
Accumulated deficit (1,637,548) (1,520,506)
Total stockholders' equity 2,808,663 2,766,275
Total liabilities and stockholders' equity $ 4,633,125 $ 4,023,690
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three and Twelve Months Ended December 31, 2017 and 2016
(In thousands of U.S. dollars, except per share amounts)
(Unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
2017 2016 2017 2016
REVENUES:
Net product revenues $ 353,577 $ 298,186 $ 1,270,445 $ 1,110,381
Royalty and other revenues 4,728 1,905 43,201 6,473
Total revenues 358,305 300,091 1,313,646 1,116,854
OPERATING EXPENSES:
Cost of sales 75,995 64,147 241,786 209,620
Research and development 168,608 175,242 610,753 661,905
Selling, general and administrative 160,280 142,958 554,336 476,593
Intangible asset amortization and contingent consideration 20,375 7,365 46,471 (26,953)
Impairment of intangible assets 599,118
Gain on sale of intangible asset (125,000) (125,000)
Total operating expenses 300,258 389,712 1,328,346 1,920,283
INCOME (LOSS) FROM OPERATIONS 58,047 (89,621) (14,700) (803,429)
Equity in the loss of BioMarin/Genzyme LLC (295) (164) (1,291) (538)
Interest income 4,822 2,926 14,853 7,487
Interest expense (11,664) (9,732) (42,707) (39,499)
Other income (expense) 3,688 4,425 7,970 4,929
INCOME (LOSS) BEFORE INCOME TAXES 54,598 (92,166) (35,875) (831,050)
Provision for (benefit from) income taxes 105,990 (1,446) 81,167 (200,840)
NET LOSS $ (51,392) $ (90,720) $ (117,042) $ (630,210)
NET LOSS PER SHARE, BASIC $ (0.29) $ (0.53) $ (0.67) $ (3.80)
NET LOSS PER SHARE, DILUTED $ (0.30) $ (0.53) $ (0.67) $ (3.81)
Weighted average common shares outstanding, basic 175,485 172,006 174,427 165,985
Weighted average common shares outstanding, diluted 175,705 172,240 174,427 166,219
Non-GAAP Information
The results presented in this press release for the three and twelve months ended December 31, 2017 and 2016 include both GAAP information and Non-GAAP information. As used in this release, Non-GAAP Income (Loss) is defined by the Company as GAAP Net Loss excluding net interest expense, provision for (benefit from) income taxes, depreciation expense, amortization expense, stock-based compensation expense, contingent consideration expense and certain other specified items, as detailed below. In addition, BioMarin includes in this press release the effects of these adjustments on certain components of GAAP Net Loss for each of the periods presented. In this regard, Non-GAAP income (loss) and its components, including Non-GAAP Royalty and Other Revenues, Non-GAAP Cost of Sales, Non-GAAP Research and Development expenses, Non-GAAP Selling, General and Administrative expense, Non-GAAP Intangible Asset Amortization and Contingent Consideration, Non-GAAP Gain on Sale of Intangible Assets, and Non-GAAP Provision for (Benefit From) Income Taxes are statement of operations line items prepared on the same basis as, and therefore components of, the overall Non-GAAP measures.
Non-GAAP Income (Loss) and its components are not meant to be considered in isolation, as a substitute for, or superior to comparable GAAP measures and should be read in conjunction with the consolidated financial information prepared in accordance with GAAP. Investors should note that the Non-GAAP information is not prepared under any comprehensive set of accounting rules or principles and does not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP. Investors should also note that these Non-GAAP measures have no standardized meaning prescribed by GAAP and, therefore, have limits in their usefulness to investors. In addition, from time to time in the future there may be other items that the Company may exclude for purposes of its Non-GAAP measures; likewise, the Company may in the future cease to exclude items that it has historically excluded for purposes of its Non-GAAP measures. Because of the non-standardized definitions, the Non-GAAP measure as used by BioMarin in this press release and the accompanying tables may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
The following table presents the reconciliation of GAAP Net Loss to Non-GAAP Income (Loss):
Reconciliation of GAAP Net Loss to Non-GAAP Income (Loss)
(In millions of U.S. dollars)
(unaudited)
Three Months Ended Twelve Months Ended Year Ending
December 31, December 31, December 31, 2018
2017 2016 2017 2016 Guidance
GAAP Net Loss $ (51.4) $ (90.7) $ (117.0) $ (630.2) $(115.0) - $(165.0)
Interest expense, net 6.8 6.8 27.9 32.0 25.0 - 35.0
Provision for (benefit from) income taxes 106.0 (1.4) 81.2 (200.8) (40.0) - 0.0
Depreciation expense 14.8 13.1 51.7 55.8 50.0 - 60.0
Amortization expense 13.4 7.6 36.2 30.2 30.0
Stock-based compensation expense 33.6 37.3 140.2 134.6 150.0 - 170.0
Contingent consideration expense (1) 7.0 (0.2) 10.3 (57.2) 20.0 - 30.0
Impairment charges (2) 599.1 -
Gain on sale of intangible asset (3) (125.0) (125.0) (20.0)
Royalty and other revenues (4) (31.5) -
Non-GAAP Income (Loss) $ 5.2 $ (27.5) $ 74.0 $ (36.5) $100 - $140
The following reconciliation of the GAAP reported to Non-GAAP information provides the details of the effects of the Non-GAAP adjustments on certain components of the Company's operating results for each of the periods presented.
Reconciliation Of Certain GAAP Reported Information To Non-GAAP Information
(In millions of U.S. dollars)
(Unaudited)
Three Months Ended December 31,
2017 2016
Adjustments Adjustments
GAAP Reported Interest, Taxes, Depreciation and Amortization Royalty and Other Revenues, Stock-Based Compensation, Contingent Consideration and Other Adjustments Non- GAAP GAAP Reported Interest, Taxes, Depreciation and Amortization Royalty and Other Revenues, Stock-Based Compensation, Contingent Consideration and Other Adjustments Non- GAAP
Cost of sales $ 76.0 $ $ (2.8) $ 73.2 $ 64.1 $ $ (3.1) $ 61.0
Research and development 168.6 (8.0) (13.2) 147.4 175.2 (7.6) (15.3) 152.3
Selling, general and administrative 160.3 (6.8) (17.6) 135.9 143.0 (5.5) (18.9) 118.6
Intangible asset amortization and contingent consideration (1) 20.4 (13.4) (7.0) 7.4 (7.6) 0.2
Gain on sale of intangible asset (3) (125.0) 125.0
Interest expense, net (6.8) 6.8 (6.8) 6.8
Provision for (benefit from) income taxes 106.0 (106.0) (1.4) 1.4
GAAP Net Loss/Non-GAAP Income (Loss) (51.4) 141.0 (84.4) 5.2 (90.7) 26.1 37.1 (27.5)
Twelve Months Ended December 31,
2017 2016
Adjustments Adjustments
GAAP Reported Interest, Taxes, Depreciation and Amortization Royalty and Other Revenues, Stock-Based Compensation, Contingent Consideration and Other Adjustments Non- GAAP GAAP Reported Interest, Taxes, Depreciation and Amortization Royalty and Other Revenues, Stock-Based Compensation, Contingent Consideration and Other Adjustments Non- GAAP
Royalty and other revenues (4) $ 43.2 $ $ (31.5) $ 11.7 $ 6.5 $ $ $ 6.5
Cost of sales 241.8 (10.6) 231.2 209.6 (9.1) 200.5
Research and development 610.8 (28.2) (53.1) 529.5 661.9 (31.0) (58.3) 572.6
Selling, general and administrative 554.3 (23.5) (76.5) 454.3 476.6 (24.8) (67.2) 384.6
Intangible asset amortization and contingent consideration (1) 46.5 (36.2) (10.3) (27.0) (30.2) 57.2
Impairment of intangible assets (2) 599.1 (599.1)
Gain on sale of intangible asset (3) (125.0) 125.0
Interest expense, net (27.9) 27.9 (32.0) 32.0
Provision for (benefit from) income taxes 81.2 (81.2) (200.8) 200.8
GAAP Net Loss/Non-GAAP Income (Loss) (117.0) 197.0 (6.0) 74.0 (630.2) (82.8) 676.5 (36.5)
1. Amounts include the expense associated with the change in the fair value of contingent acquisition consideration payable for the period, resulting from changes in estimated probabilities and timing of achieving certain regulatory and commercial milestones. Amounts for the year ended December 31, 2016 include $43.8 million and $21.1 million related to the change in probability of achieving the Kyndrisa and reveglucosidase alfa development milestones, respectively, as a result of discontinuance of these programs in June 2016.
2. Amounts for the twelve months ended December 31, 2016 include $574.1 million and $25.0 million for the impairment of intangible assets associated with the discontinuance of the Kyndrisa and Reveglucosidase alpha development programs, respectively.
3. Amount represents gain on the sale of the Priority Review Voucher in December 2017.
4. Primarily represents the one-time upfront payment related to the License and Settlement Agreement entered into with Sarepta Therapeutics, Inc. in July 2017.
Contact:
Investors: Media:
Traci McCarty Debra Charlesworth
BioMarin Pharmaceutical Inc. BioMarin Pharmaceutical Inc.
(415) 455-7558 (415) 455-7451
SOURCE BioMarin Pharmaceutical Inc.

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Last updated: Feb 22, 2018