An FDA advisory committee gave BioMarin's drug Vimizim the thumb's up for the treatment of Morquio A syndrome. This has spurred analysts to suggest that the acquisition activity for BioMarin will heat up. A William Blair company analysts says the biotech will command at least a $93 per share premium offer. This is about 35% above its closing price near $70 yesterday. That would represent a purchase price for the company around $13 B. The highest price that as been talked about in biotech since Genzyme was purchased for $20 B by Sanofi.
Supposedly big pharma companies like Pfizer or GSK are interested. But this would represent a price-sales ratio of nearly 17x as compared to the 5x ratio that was present in the Genzyme deal. Roche CEO, Severin Schwan commented that he doesn't know where these biotech valuations are coming from. He indicated that his company was "scratching its head". A Wedbush Inc analysts concurred with Schwan saying that a lot of companies might like to buy BioMarin but that it was too expensive. BioMarin recently projected posting its first profit in 6 years. See Bloomberg.
Posted by Bruce Lehr Nov 22nd 2013.