BioMarin (BMRN) Stock Soars on Takeover Speculation
NEW YORK (TheStreet) -- Shares of BioMarin Pharmaceutical (BMRN) - Get Report are surging 9.32% to $88.34 on heavy trading volume late Thursday morning on speculation that Swiss drugmaker Roche (RHHBY) might purchase the Novato, CA-based pharmaceutical company.
A bid would likely be between $130 and $150 per share, though it's unclear whether a formal offer has been made or discussions have been held, sources told U.K. financial blog Betaville.
One Betaville source did claim that Roche got close to making a formal offer before Britain's recent decision to exit the European Union and the ensuing market fallout.
About 3.79 million shares of BioMarin have been traded so far today, well above its average trading volume of roughly 1.54 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
BioMarin's weaknesses include its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: BMRN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.