NEW YORK (TheStreet) -- Shares of BioMarin Pharmaceutical (BMRN) - Get Report are up by 6.68% to $103.29 in early afternoon trading on Wednesday, after the company won a patent dispute with Sarepta Therapeutics (SRPT) - Get Report yesterday.
The U.S. Patent Trial and Appeal Board (PTAB) ruled that BioMarin's muscular dystrophy treatment did not interfere with Sarepta's drug patents.
The PTAB's decision includes the cancellation of Sarepta's antisense oligonucleotides patent.
Sarepta intends to go to the U.S. Court of Appeals to appeal the board's decision.
Separately, TheStreet Ratings team rates BIOMARIN PHARMACEUTICAL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate BIOMARIN PHARMACEUTICAL INC (BMRN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 30.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- BMRN's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.55, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for BIOMARIN PHARMACEUTICAL INC is currently very high, coming in at 88.95%. Regardless of BMRN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BMRN's net profit margin of -32.72% significantly underperformed when compared to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 144.7% when compared to the same quarter one year ago, falling from -$33.50 million to -$81.99 million.
- Net operating cash flow has decreased to -$12.99 million or 12.65% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: BMRN