BioMarin Reports Fourth Quarter and Full Year 2024 Results; Sets Full Year 2025 Guidance
Strong Execution and Operational Transformation in 2024 Delivered Record Full Year Results and Provides Momentum for Double-Digit Revenue and Profitability Growth in 2025
4Q 2024 Total Revenues of $747 million (+16% Y/Y and +21% at Constant Currency Y/Y); FY 2024 Total Revenues of $2.85 billion (+18% Y/Y and +22% at Constant Currency Y/Y)
Conference Call and Webcast Scheduled Today at 4:30 p.m. ET
SAN RAFAEL, Calif., Feb. 19, 2025 /PRNewswire/ -- BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) today announced financial results for the fourth quarter and full year ended December 31, 2024.
"Our operational transformation and strong financial execution in 2024 is the first step in BioMarin's ambitious multiyear growth plan," said Alexander Hardy, President and Chief Executive Officer of BioMarin. "We begin 2025 ready to build on our leadership in treating genetically defined conditions and deliver breakthrough medicines to the patients we serve. This year, we expect a number of innovative pipeline candidates to advance, including BMN 351 for Duchenne Muscular Dystrophy, and BMN 333 for multiple skeletal conditions, that will yield early clinical data read-outs, as well as results from the Phase 3 PALYNZIQ(®) study for the treatment of adolescents with phenylketonuria between the ages of 12 and 17. We plan to submit applications to expand the age eligibility in the United States and Europe in the second half of 2025, should the PALYNZIQ data be supportive."
Mr. Hardy continued, "We expect 2025 to be another year of strong execution and growth in our Skeletal Conditions business unit, led by the continued global expansion of VOXZOGO for achondroplasia. Across our Enzyme Therapies, we are implementing new initiatives to reach an even greater number of patients around the world. In addition to this commercial performance, we intend to execute on our business development strategy as well as advance five new VOXZOGO indications within our CANOPY clinical program. In summary, we expect continued high performance as we benefit from BioMarin's revamped corporate strategy and operating model in 2025 and beyond."
Fourth Quarter Financial Highlights:
-- Total Revenues for the fourth quarter of 2024 were $747 million, an
increase of 16%, compared to the same period in 2023, driven by strong
VOXZOGO contributions from new patient starts in all regions. In the
quarter, revenues from BioMarin's Enzyme Therapies (ALDURAZYME(®),
BRINEURA(®), NAGLAZYME(®), PALYNZIQ and VIMIZIM(®)) increased 9%
compared to the fourth quarter of 2023. The increase in revenues from
Enzyme Therapies was driven by a combination of increased patient demand
in all regions and the timing of large government orders in certain
regions outside the U.S.
-- GAAP Net Income increased by $105 million to $125 million in the fourth
quarter of 2024 compared to the same period in 2023. The increase was
primarily due to higher gross profit driven by the factors noted above
and reduced research and development (R&D) spend on terminated programs
following the company's strategic portfolio review. The increase was
partially offset by higher spend in Selling, General and Administrative
(SG&A), primarily due to increased bad debt expense.
-- Non-GAAP Income increased by $85 million to $180 million in the fourth
quarter of 2024 compared to the same period in 2023. The increase in
Non-GAAP Income was primarily due to the factors noted above.
Fourth Quarter and Full-year 2024 Highlights and 2025 Outlook
Innovation
-- Skeletal Conditions: Recently published data highlight the importance of
early treatment with VOXZOGO. As published in the December 2024 issue of
MED, VOXZOGO contributes to benefits beyond height, a key area of focus
for caregivers and health care professionals. With three years of
follow-up, VOXZOGO-treated children had statistically significant
improvements in body proportionality compared with untreated children of
the same age range and gender. VOXZOGO is the only treatment for
achondroplasia to have demonstrated, and been published in a
peer-reviewed journal, statistically significant improvement in
proportionality versus an untreated control arm.
-- In January 2025, new international treatment guidelines were published
in the journal Nature Reviews Endocrinology recommending early screening
for achondroplasia followed by VOXZOGO treatment soon after diagnosis to
provide children with the maximal opportunity for clinical benefit.
These guidelines are expected to provide health care professionals and
families confidence in VOXZOGO as the treatment of choice when making
the important decision to pursue therapy, from infancy, for children
with achondroplasia.
-- Also in January 2025, dosing was initiated for the first-in-human study
with BMN 333, a long-acting C-type natriuretic peptide (CNP). Initial
pharmacokinetic (PK) data is expected by year-end 2025, with detailed
data to be presented at a scientific conference in the first half of
2026. BioMarin is encouraged by the pre-clinical profile of BMN 333 in
non-human primates, where sustained 100 pM concentrations for free CNP
were observed, representing an approximate 2-3 fold increase versus
published data in an analogous pre-clinical model for other long-acting
CNP analogs.
-- During the quarter, BioMarin also advanced development across its CANOPY
clinical program with VOXZOGO in hypochondroplasia, idiopathic short
stature, Noonan syndrome, Turner syndrome, and SHOX deficiency. The
pivotal study in hypochondroplasia is expected to complete enrollment in
the first half of 2025 and remains on track to launch in 2027.
-- Other Clinical Pipeline Programs: BioMarin's next generation
oligonucleotide for Duchenne Muscular Dystrophy, BMN 351, is expected to
report initial proof-of-concept data at a scientific congress in the
second half of 2025 (including muscle dystrophin levels after 25 weeks
of dosing). Results from the phase 3 study with PALYNZIQ in adolescents
ages 12-17 are expected in mid-2025 to support potential submissions for
age label expansions in the U.S. and Europe in the second half of the
year. With BMN 349, an oral therapeutic for Alpha-1 antitrypsin
deficiency (AATD)-associated liver disease, the single-ascending dose
(SAD) phase of the first-in-human study is complete and dosing in the
multiple-ascending dose (MAD) phase of the study began in December 2024.
Growth
-- In 2024, strong global demand drove 42% fourth quarter growth and 56%
full-year growth for VOXZOGO revenues, compared to the same periods in
2023. VOXZOGO's extensive safety and efficacy profile led more families
to begin therapeutic intervention early to potentially improve
craniofacial volume, foramen magnum area, body proportionality and
quality of life, in addition to durable increases in growth velocity. As
of the end of 2024, 47 countries were contributing to VOXZOGO's global
revenues, and the company expects VOXZOGO to be available in more than
60 countries by 2027. With its expected growth trajectory, VOXZOGO is on
track to achieve a revenue compound annual growth rate (CAGR) exceeding
25% for the period 2023 - 2027.
-- To provide additional insight into the dynamics of VOXZOGO's ongoing
global expansion, today BioMarin provided the percentage of actual total
VOXZOGO revenues split between the U.S. and the combined contributions
from outside of the U.S. (OUS). In fourth quarter 2024, VOXZOGO global
revenues were $208 million, including a 26% contribution from the U.S.
and a 74% contribution from OUS. In the full year 2024, VOXZOGO global
revenues were $735 million, including a 24% contribution from the U.S.
and a 76% contribution from OUS.
-- In the U.S., the largest single market opportunity for achondroplasia,
the majority of new patient starts in the quarter were for children
under the age of 5 years. In 2025, launch momentum across the U.S. is
expected to contribute meaningfully to the continued global expansion of
VOXZOGO across all ages from infancy.
-- Enzyme Therapies continue to be a significant driver of growth, with
revenues increasing 9% in the fourth quarter and 12% for the full-year
2024, compared to the same periods in 2023. 2024 benefited from the
timing of ALDURAZYME orders, resulting in 40% Y/Y revenue growth in
ALDURAZYME. Enzyme Therapies excluding ALDURAZYME contributed 10% Y/Y
growth in full year 2024. Double-digit increases in PALYNZIQ revenue
throughout 2024, and solid growth from BioMarin's other enzyme
treatments are expected to continue into 2025, with Enzyme Therapies on
track toward its long-term growth outlook of high single-digit CAGR.
Value Commitment
-- In 2024, BioMarin delivered record performance across the business.
Total revenues for the full-year 2024 grew 18%. BioMarin's full-year
GAAP Operating Margin of 17.0% expanded 9.3 percentage points Y/Y while
GAAP Diluted EPS of $2.21 increased 154% Y/Y. Full-year Non-GAAP
Operating Margin of 28.6% expanded 9.2 percentage points Y/Y while
Non-GAAP Diluted EPS of $3.52 increased 69% Y/Y. These measures of
profitability increased at rates faster than revenue growth,
representing the company's focus on operational efficiency.
-- In 2025, the company will continue to implement additional components of
the $500 million cost transformation program announced in September of
2024, with full realization of benefits expected in 2026. This ongoing
integration of efficiencies in 2025 is expected to enable BioMarin to
realize 40% Non-GAAP Operating Margin in 2026.
-- In 2025, full year Total Revenues guidance represents 10% Y/Y growth at
the mid-point, expected to be driven by VOXZOGO's continued global
expansion and solid demand across Enzyme Therapies. The company is on
track to deliver its previously targeted Total Revenues of approximately
$4 billion in 2027. Non-GAAP Operating Margin is expected to grow 14%
(3.9 percentage points) Y/Y at the mid-point of guidance and Non-GAAP
Diluted EPS is expected to increase 22% Y/Y at the mid-point of
guidance, as a result of continued strong commercial execution and focus
on operational efficiencies across the business.
-- The company generated operating cash flows totaling $573 million in full
year 2024, an increase of 260% compared to full year 2023. Total cash
and investments at the end of the fourth quarter were approximately $1.7
billion, and with anticipated increasing profitability, BioMarin is
positioned to generate increasing operating cash flow into the future,
targeting more than $1.25 billion operating cash flows per year starting
in 2027.
Financial Highlights
(in millions of U.S. dollars, except per share data, unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2024 2023 % Change 2024 2023 % Change
Total Revenues $747 $646 16 % $2,854 $2,419 18 %
Net Product Revenues by Product:
VOXZOGO $208 $146 42 % $735 $470 56 %
Enzyme Therapies:
VIMIZIM $191 $176 9 % $740 $701 6 %
NAGLAZYME 110 98 12 % 480 420 14 %
PALYNZIQ 100 88 14 % 355 304 17 %
BRINEURA 48 44 9 % 169 162 4 %
ALDURAZYME 39 43 (9) % 184 131 40 %
Total Enzyme Therapies Revenue $488 $449 9 % $1,928 $1,718 12 %
KUVAN $28 $37 (24) % $121 $181 (33) %
ROCTAVIAN(R) $11 $3 267 % $26 $3 767 %
GAAP Net Income $125 $20 525 % $427 $168 154 %
Non-GAAP Income (1) $180 $95 89 % $686 $405 69 %
GAAP Operating Margin % (2) 21.6 % 4.2 % 17.0 % 7.7 %
Non-GAAP Operating Margin % (1) 31.1 % 17.2 % 28.6 % 19.4 %
GAAP Diluted Earnings per Share (EPS) $0.64 $0.11 482 % $2.21 $0.87 154 %
Non-GAAP Diluted EPS (1) $0.92 $0.49 88 % $3.52 $2.08 69 %
December 31, December 31,
2024 2023
Total cash, cash equivalents & investments $1,659 $1,685
(1) Refer to Non-GAAP Information beginning on page 10 of this press
release for definitions of Non-GAAP Income, Non-GAAP Operating
Margin percentage and Non-GAAP Diluted EPS along with the related
reconciliations to the comparable information reported under U.S.
GAAP.
(2) GAAP Operating Margin percentage is defined by the company as GAAP
Income from Operations divided by Total Revenues.
Forward-Looking Non-GAAP Financial Information
BioMarin does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking Non-GAAP financial measures to the most directly comparable GAAP reported financial measures because the company is unable to predict with reasonable certainty the financial impact of changes resulting from its strategic portfolio and business operating model reviews; potential future asset impairments; gains and losses on investments; and other unusual gains and losses without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. As such, any reconciliations provided would imply a degree of precision that could be confusing or misleading to investors.
2025 Full-Year Financial Guidance (in millions, except % and EPS amounts)
Item 2025 Guidance
Total Revenues (1) $3,100 to $3,200
Non-GAAP Operating Margin % (2) 32 % to 33 %
Non-GAAP Diluted EPS (2)(3) $4.20 to $4.40
(1) VOXZOGO contribution to full-year 2025 Total Revenues expected to be
in the range of $900 million to $950 million.
(2) Refer to Non-GAAP Information beginning on page 10 of this press
release for definitions of Non-GAAP Operating Margin and Non-GAAP
Diluted EPS.
(3) Non-GAAP Diluted EPS guidance assumes approximately 200 million
Weighted-Average Diluted Shares Outstanding.
BioMarin will host a conference call and webcast to discuss fourth quarter and full-year 2024 financial results today, Wednesday, February 19, 2025, at 4:30 p.m. ET. This event can be accessed through this link or on the investor section of the BioMarin website at www.biomarin.com.
U.S./Canada Dial-in Number: 800-715-9871 Replay Dial-in Number: 800-770-2030
International Dial-in Number: 646-307-1963 Replay International Dial-in Number:
609-800-9909
Conference ID: 1878833
Conference ID: 1878833
About BioMarin
BioMarin is a global biotechnology company dedicated to translating the promise of genetic discovery into medicines that make a profound impact on the life of each patient. The San Rafael, California-based company, founded in 1997, has a proven track record of innovation with eight commercial therapies and a strong clinical and preclinical pipeline. Using a distinctive approach to drug discovery and development, BioMarin pursues treatments that offer new possibilities for patients and families around the world navigating rare or difficult to treat genetic conditions. To learn more, please visit www.biomarin.com.?
Forward-Looking Statements
This press release and the associated conference call and webcast contain forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc. (BioMarin), including, without limitation, statements about: future financial performance, including the expectations of Total Revenues, Non-GAAP Operating Margin percentage, Non-GAAP Diluted EPS and Operating Cash Flow for, in certain instances, the full-year 2025 and future periods, as well as double-digit revenue and profitability growth in 2025, and the underlying drivers of those results, such as the revenue opportunity represented by treatments for Skeletal Conditions, namely VOXZOGO, the expected demand and continued growth potential of BioMarin's Enzyme Therapies portfolio, including PALYNZIQ, and the expectation regarding the full realization of the benefits of BioMarin's cost transformation program and the integration of efficiencies; plans regarding BioMarin's revamped corporate strategy and operating model in 2025 and beyond, including expected growth in the Skeletal Conditions business unit and execution of BioMarin's business development strategy, and its anticipated benefits; expectations regarding the Revenue Compound Annual Growth Rate (CAGR) of VOXZOGO and Enzyme Therapies for future periods; the timing of orders for commercial products; BioMarin's ability to meet product demand; the timing of BioMarin's clinical development and commercial prospects, including announcements of data from clinical studies and trials; the clinical development and commercialization of BioMarin's product candidates and commercial products, including (i) expected advancements of pipeline candidates, including BMN 333, BMN 349 and BMN 351, and expected early clinical data read-outs in 2025 for BMN 333 and BMN 351; (ii) expected results from Phase 3 PALYNZIQ study for the treatment of adolescents with phenylketonuria between the ages of 12 and 17 in 2025 and plans to submit applications to expand age eligibility in the U.S. and Europe in the second half of 2025; (iii) plans for the pivotal study in hypochondroplasia to complete enrollment in the first half of 2025 and launch in 2027; (iv) the expectations regarding global expansion of VOXZOGO and that VOXZOGO will be available in more than 60 countries by 2027; (v) plans to advance five new VOXZOGO indications with BioMarin's CANOPY clinical program; and (vi) plans to reach greater number of patients around the world across BioMarin's Enzyme Therapies; the expected benefits and availability of BioMarin's commercial products and product candidates; and potential growth opportunities and trends.
These forward-looking statements are predictions and involve risks and uncertainties such that actual results may differ materially from these statements. These risks and uncertainties include, among others: BioMarin's success in the commercialization of its commercial products; impacts of macroeconomic and other external factors on BioMarin's operations; results and timing of current and planned preclinical studies and clinical trials and the release of data from those trials; BioMarin's ability to successfully manufacture its commercial products and product candidates; the content and timing of decisions by the Food and Drug Administration, the European Commission and other regulatory authorities concerning each of the described products and product candidates; the market for each of these products; actual sales of BioMarin's commercial products; and those factors detailed in BioMarin's filings with the Securities and Exchange Commission, including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 as such factors may be updated by any subsequent reports. Stockholders are urged not to place undue reliance on forward-looking statements, which speak only as of the date hereof. BioMarin is under no obligation, and expressly disclaims any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise.
BioMarin(®), BRINEURA(®), KUVAN(®), NAGLAZYME(®), PALYNZIQ(®), ROCTAVIAN(®), VIMIZIM(®) and VOXZOGO(®) are registered trademarks of BioMarin Pharmaceutical Inc., or its affiliates. ALDURAZYME(®) is a registered trademark of BioMarin/Genzyme LLC. All other brand names and service marks, trademarks and other trade names appearing in this release are the property of their respective owners.
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three and Twelve Months Ended December 31, 2024 and 2023
(In thousands of U.S. dollars, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2024 2023 2024 2023
REVENUES:
Net product revenues $735,634 $633,148 $2,809,445 $2,372,538
Royalty and other revenues 11,679 13,059 44,470 46,688
Total revenues 747,313 646,207 2,853,915 2,419,226
OPERATING EXPENSES:
Cost of sales 136,139 137,930 580,235 532,062
Research and development 173,509 206,250 747,184 746,773
Selling, general and administrative 266,607 259,512 1,009,025 892,406
Intangible asset amortization 9,651 15,236 43,257 62,211
Gain on sale of nonfinancial assets - (10,000)
Total operating expenses 585,906 618,928 2,369,701 2,233,452
INCOME FROM OPERATIONS 161,407 27,279 484,214 185,774
Interest income 17,680 18,044 74,883 58,339
Interest expense (2,577) (6,098) (12,666) (17,335)
Other expense, net (6,871) (19,898) (4,668) (38,215)
INCOME BEFORE INCOME TAXES 169,639 19,327 541,763 188,563
Provision for (benefit from) income taxes 44,696 (1,048) 114,904 20,918
NET INCOME $124,943 $20,375 $426,859 $167,645
EARNINGS PER SHARE, BASIC $0.66 $0.11 $2.25 $0.89
EARNINGS PER SHARE, DILUTED $0.64 $0.11 $2.21 $0.87
Weighted average common shares outstanding, basic 190,688 188,479 190,027 187,834
Weighted average common shares outstanding, diluted 196,581 191,838 196,708 191,595
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2024
and 2023
(In thousands of U.S. dollars, except per share amounts)
(Unaudited)
December 31, 2024 December 31, 2023
?(1)?
ASSETS
Current assets:
Cash and cash equivalents $942,842 $755,127
Short-term investments 194,864 318,683
Accounts receivable, net 660,535 633,704
Inventory 1,232,653 1,107,183
Other current assets 201,533 141,391
Total current assets 3,232,427 2,956,088
Noncurrent assets:
Long-term investments 521,238 611,135
Property, plant and equipment, net 1,043,041 1,066,133
Intangible assets, net 255,278 294,701
Goodwill 196,199 196,199
Deferred tax assets 1,489,366 1,545,809
Other assets 251,391 171,538
Total assets $6,988,940 $6,841,603
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $606,988 $683,147
Short-term convertible debt, net - 493,877
Total current liabilities 606,988 1,177,024
Noncurrent liabilities:
Long-term convertible debt, net 595,138 593,095
Other long-term liabilities 128,824 119,935
Total liabilities 1,330,950 1,890,054
Stockholders' equity:
Common stock, $0.001 par value: 500,000,000 shares authorized; 190,761,349 and 191 189
188,598,154 shares issued and outstanding, respectively
Additional paid-in capital 5,802,068 5,611,562
Company common stock held by the Nonqualified Deferred Compensation Plan (11,227) (9,860)
Accumulated other comprehensive income (loss) 61,653 (28,788)
Accumulated deficit (194,695) (621,554)
Total stockholders' equity 5,657,990 4,951,549
Total liabilities and stockholders' equity $6,988,940 $6,841,603
(1) December 31, 2023 balances were derived from the audited Consolidated
Financial Statements included in the company's Annual Report on Form
10-K for the year ended December 31, 2023, filed with the SEC on
February 26, 2024.
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended December 31, 2024
and 2023
(In thousands of U.S. dollars)
(Unaudited)
Twelve Months Ended December 31,
2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $426,859 $167,645
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 96,426 104,386
Non-cash interest expense 3,359 4,188
Amortization of premium (accretion of discount) on investments (8,345) (9,228)
Stock-based compensation 201,571 207,099
Gain on sale of nonfinancial assets (10,000)
Impairment of assets and other non-cash adjustments 19,889 38,608
Deferred income taxes 56,096 (44,981)
Unrealized foreign exchange loss (gain) (16,753) 28,446
Other 20,135 (365)
Changes in operating assets and liabilities:
Accounts receivable, net (57,909) (190,435)
Inventory (63,530) (157,058)
Other current assets (3,778) (50,335)
Other assets (73,700) (31,149)
Accounts payable and other short-term liabilities (32,240) 68,853
Other long-term liabilities 14,761 23,585
Net cash provided by operating activities 572,841 159,259
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (85,424) (96,691)
Maturities and sales of investments 633,018 864,863
Purchases of investments (410,250) (868,496)
Proceeds from sale of nonfinancial assets 10,000
Purchase of intangible assets (11,994) (10,920)
Other 1,141
Net cash provided by (used in) investing activities 136,491 (111,244)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of awards under equity incentive plans 49,277 69,353
Taxes paid related to net share settlement of equity awards (77,560) (76,319)
Repayments of convertible debt (494,987)
Payments of contingent consideration - (9,475)
Other (3,177) (2,286)
Net cash used in financing activities (526,447) (18,727)
Effect of exchange rate changes on cash 4,830 1,308
NET INCREASE IN CASH AND CASH EQUIVALENTS 187,715 30,596
Cash and cash equivalents:
Beginning of period $755,127 $724,531
End of period $942,842 $755,127
Non-GAAP Information
The results presented in this press release include both GAAP information and Non-GAAP information. Non-GAAP Income is defined by the company as GAAP Net Income excluding amortization of intangible assets, stock-based compensation expense and, in certain periods, certain other specified items, as detailed below when applicable. The company also includes a Non-GAAP adjustment for the estimated tax impact of the reconciling items. Non-GAAP R&D expenses and Non-GAAP SG&A expenses are defined by the company as GAAP R&D expenses and GAAP SG&A expenses, respectively, excluding stock-based compensation expense and, in certain periods, certain other specified items, as detailed below when applicable. Non-GAAP Operating Margin percentage is defined by the company as GAAP Income from Operations, excluding amortization of intangible assets, stock-based compensation expense and, in certain periods, certain other specified items, divided by GAAP Total Revenues. Non-GAAP Diluted EPS is defined by the company as Non-GAAP Income divided by Non-GAAP Weighted-Average Diluted Shares Outstanding. Non-GAAP Weighted-Average Diluted Shares Outstanding is defined by the company as GAAP Weighted-Average Diluted Shares Outstanding, adjusted to include any common shares issuable under the company's equity plans and convertible debt in periods when they are dilutive under Non-GAAP. The company's presentation of percentage changes in total revenues at Constant Currency rates, which is computed using current period local currency sales at the prior period's foreign exchange rates, is also a Non-GAAP financial measure. This measure provides information about growth (or declines) in the company's total revenue as if foreign currency exchange rates had not changed between the prior period and the current period.
BioMarin regularly uses both GAAP and Non-GAAP results and expectations internally to assess its financial operating performance and evaluate key business decisions related to its principal business activities: the discovery, development, manufacture, marketing and sale of innovative biologic therapies. Because Non-GAAP Income, Non-GAAP R&D expenses, Non-GAAP SG&A expenses, Non-GAAP Operating Margin percentage, Non-GAAP Diluted EPS, Non-GAAP Weighted-Average Diluted Shares Outstanding and Constant Currency are important internal measurements for BioMarin, the company believes that providing this information in conjunction with BioMarin's GAAP information enhances investors' and analysts' ability to meaningfully compare the company's results from period to period and to its forward-looking guidance, and to identify operating trends in the company's principal business. BioMarin also uses Non-GAAP Income internally to understand, manage and evaluate its business and to make operating decisions, and compensation of executives is based in part on this measure.
Non-GAAP financial measures are not meant to be considered in isolation or 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 financial 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 financial measures; likewise, the company may in the future cease to exclude items that it has historically excluded for purposes of its Non-GAAP financial measures. Because of the non-standardized definitions, the Non-GAAP financial 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 tables present the reconciliation of GAAP reported to Non-GAAP adjusted financial information:
Reconciliation of GAAP Reported Information to Non-GAAP Information (1)
(In millions of U.S. dollars, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2024 2023 2024 2023
GAAP Reported Net Income $125 $20 $427 $168
Adjustments
Stock-based compensation expense - COS 3 5 15 18
Stock-based compensation expense - R&D 14 16 60 66
Stock-based compensation expense - SG&A 34 34 127 124
Amortization of intangible assets 10 15 43 62
Gain on sale of nonfinancial assets (2) - (10)
Severance and restructuring costs (3) 10 96 (1)
Asset impairments (4) - 14 14
Loss on investments (5) - 12 5 25
Income tax effect of adjustments (16) (21) (76) (70)
Non-GAAP Income $180 $95 $686 $405
Three Months Ended Twelve Months Ended
December 31, December 31,
2024 2024
Dollar Percentage Dollar Percentage
GAAP Change in Total Revenues $101 16 % $435 18 %
Adjustment for unfavorable impact of foreign currency 33 108
exchange rates on product sales denominated in currencies
other than U.S. dollars
Non-GAAP change in Total Revenues at Constant Currency $134 21 % $543 22 %
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024 2023 2024 2023
R&D SG&A R&D SG&A R&D SG&A R&D SG&A
GAAP expenses $174 $267 $206 $260 $747 $1,009 $747 $892
Adjustments
Stock-based compensation expense (14) (34) (16) (34) (60) (127) (66) (124)
Severance and restructuring costs (3) (10) (96)
Asset impairments (4) (14) (14)
Non-GAAP expenses $159 $222 $190 $212 $688 $786 $681 $755
Three Months Ended Twelve Months Ended
December 31,
December 31,
2024 Percent 2023 Percent 2024 Percent 2023 Percent
of GAAP of GAAP of GAAP of GAAP
Total Total Total Total
Revenue Revenue Revenue Revenue
GAAP Income from Operations $161 21.6 % $27 4.2 % $484 17.0 % $186 7.7 %
Adjustments
Stock-based compensation expense 51 6.8 55 8.5 202 7.1 207 8.6
Amortization of intangible assets 10 1.3 15 2.3 43 1.5 62 2.6
Gain on sale of nonfinancial assets (2) (10) (0.4)
Severance and restructuring costs (3) 10 1.3 96 3.4 (1)
Asset impairments (4) 14 2.2 14 0.6
Non-GAAP Income from Operations $232 31.1 % $111 17.2 % $815 28.6 % $469 19.4 %
Three Months Ended Twelve Months Ended
December 31, December 31,
2024 2023 2024 2023
GAAP Diluted EPS $0.64 $0.11 $2.21 $0.87
Adjustments
Stock-based compensation expense 0.26 0.27 1.03 1.04
Amortization of intangible assets 0.05 0.08 0.22 0.31
Gain on sale of nonfinancial assets (2) (0.05)
Severance and restructuring costs (3) 0.05 0.49
Asset impairments (4) 0.07 0.07
Loss on investments (5) 0.06 0.03 0.12
Income tax effect of adjustments (0.08) (0.10) (0.39) (0.33)
Non-GAAP Diluted EPS $0.92 $0.49 $3.52 $2.08
(1) Certain amounts may not sum or recalculate due to rounding.
(2) Represents a payment triggered by a third party's attainment of a
regulatory approval milestone related to previously sold intangible
assets.
(3) These amounts were included in SG&A and represent severance and
restructuring costs related to the company's 2024 portfolio strategy
review and the associated organizational redesign efforts announced
in the second and third quarters of 2024. These amounts also include
impairments of certain right-of-use and fixed assets.
(4) Represents the write-off of capitalized tooling and fixed assets in
SG&A associated with the company's decision to cease development of
the first generation VOXZOGO pen device in the fourth quarter of
2023.
(5) The current period represents a downward adjustment to non-
marketable equity securities recorded in Other income (expense), net
in the first quarter of 2024. The prior year represents the
impairment losses on an investment in non-marketable equity
securities and a convertible note recorded in Other expense, net in
the first and fourth quarter of 2023, respectively.
Three Months Twelve Months
Ended Ended
December 31, December 31,
2024 2023 2024 2023
GAAP Weighted-Average Diluted Shares Outstanding 196.6 191.8 196.7 191.6
Adjustments
Common stock issuable under the company's convertible debt (1) 8.4 8.4
Non-GAAP Weighted-Average Diluted Shares Outstanding 196.6 200.2 196.7 200.0
(1) Common stock issuable under the company's convertible debt was
excluded from the computation of GAAP Weighted-Average Diluted
Shares Outstanding when they were anti-dilutive. If converted, for
the prior year comparative period, the company would have issued
approximately 4.4 million shares under the convertible notes due in
2027 and 4 million shares under the convertible notes that matured
on August 1, 2024.
Contact:
Investors: Media:
Traci McCarty Marni Kottle
BioMarin Pharmaceutical Inc. BioMarin Pharmaceutical
Inc.
(415) 455-7558 (650) 374-2803
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SOURCE BioMarin Pharmaceutical Inc.
