BioMarin Pharmaceutical Inc. (BMRN) Earnings & Analysis

Latest quarter

BioMarin reported Q2 FY2026 revenue of $989.7 million, above the consensus estimate of $922.3 million. Adjusted earnings per share were $1.20, also above the consensus estimate of $0.96. The company’s diluted EPS was $0.23, compared with $1.23 a year earlier.

Revenue rose 19.9% from $825.4 million a year earlier. Chief Commercial Officer Cristin Hubbard said pro forma second-quarter revenue grew approximately 10% year over year for Galafold and more than 65% for Pombiliti and Opfolda, the therapies added through the Amicus acquisition.

BioMarin’s gross margin fell to 79.5% from 81.8%. Its filing attributed the decline primarily to higher sales volume and amortization of an acquired inventory fair-value adjustment associated with Amicus products. Operating margin fell to 11.2% from 33.5%; CFO Brian Mueller said GAAP selling, general and administrative expenses included approximately $84 million in transaction and integration charges. BioMarin’s free cash flow was $133.9 million, compared with $167.9 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Alexander Hardy said Voxogo revenue grew by double digits in both the U.S. and international markets. He said BioMarin had submitted an application to expand the drug’s use to hypochondroplasia and would update investors with third-quarter results.

Asked about competition, Hardy said approximately 10% of patients had switched from Voxogo in the U.S., based on BioMarin’s data. Chief Commercial Officer Cristin Hubbard said the reasons the company heard included “injection fatigue or wanting to try a weekly therapy.” She said the company’s clinical coordinators and evidence on the treatment helped support relationships with families who remained on it.

Analysts also asked about switching assumptions in the outlook. CFO Brian Mueller said the guidance included an assumption, but declined to quantify it. Hubbard said BioMarin needed to monitor whether switching would level out or continue.

On Amicus, Hardy said BioMarin retained the acquired company’s commercialization team to support patient continuity. Hubbard said BioMarin’s plans for Galafold centered on increasing diagnosis, while its plans for Pombiliti and Opfolda relied more on patients switching treatments. Mueller said accelerating growth in the acquired products would require some incremental investment.

Asked about the acquisition’s earnings contribution, Mueller said it remained modestly dilutive in 2026 but was “close to break even.” He said BioMarin expected half to slightly more than half of the identified synergies to be realized in 2027. Mueller also said acquisition financing increased interest expense and that investment sales reduced interest income.

For the next quarter, Mueller said BioMarin expected a full quarter of Amicus operating expenses, with cost-synergy benefits becoming more meaningful in the fourth quarter. He expected third-quarter non-GAAP EPS to be slightly higher than in the second quarter.

Guidance

Mueller said BioMarin raised its full-year 2026 guidance for total revenue, Voxogo revenue and non-GAAP diluted EPS. The prior outlook was $3.825 billion to $3.925 billion for total revenue, $975 million to $1.025 billion for Voxogo and $4.85 to $5.05 for non-GAAP diluted EPS.

On the latest call, Hardy said BioMarin expected Voxogo revenue to exceed $1 billion for the year. Mueller said third-quarter revenue would be slightly higher than second-quarter revenue, reflecting a full quarter of Amicus contributions and continued patient growth.