Cross Over to BioMarin

Karen Andersen, an analyst with Morningstar, says that a company that would be interested in BioMarin would likely be one that "has experience in rare diseases and an international sales force but also has an interest in the cardiovascular diseases." She adds, "It's possible that Genzyme would be interested. They've been a very acquisitive company."

BioMarin is also teamed with Serono (SRA), its partner in Phenoptin and the cardiovascular indications of 6R-BH4. Serono is in the process of being acquired by Germany's Merck KGaA.

If the 6R-BH4 data are positive in the phase II results next year, I would expect some larger company to snap up BioMarin, especially if the mergers-and-acquisition environment is as hot as it is today.

CEO Bienaime says he has no plans to sell the company. Then again, he acknowledges he's not vehemently opposed to the idea. "Because we have multiple product opportunities, are generating significant revenue and are pretty close to being cash-flow positive, we believe we have the ability to build this company for the long term," he says. "At the same time, we cannot guarantee we will remain independent forever."

Morningstar's Andersen believes that the company can operate just fine on its own and that joint ventures with larger biotechs or pharmas are unnecessary. She states, "Naglazyme's success shows the company doesn't need a partner like Genzyme to successfully educate and navigate the reimbursement environments internationally."

Even without 6R-BH4, BioMarin has proven itself in the difficult area of rare diseases and should be able to continue to grow sales in MPS and eventually PKU. The cardiovascular and other indications could be a nice bonus while the company brings in cash serving its niche base.

Invesors will likely continue to notice. Don't be surprised if a suitor does too.

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