BioMarin Pharmaceutical (BMRN) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $712 million, up 20% year-over-year, driven by strong global demand for VOXZOGO and enzyme therapies, with VOXZOGO revenues rising 62% to $184 million and 3,500 children treated globally.

• Net income for Q2 2024 was $107.2 million, nearly doubling from Q2 2023, with GAAP diluted EPS up 90% to $0.55 and non-GAAP diluted EPS up 78% to $0.96.

• Strategic portfolio review led to prioritization of high-impact R&D programs, discontinuation of certain others, and a 5% workforce reduction.

• Announced a focused strategy for ROCTAVIAN, prioritizing the US, Germany, and Italy, with a cost envelope of $60 million for 2025 and a goal of profitability by year-end 2025.

• Cash, cash equivalents, and investments totaled $1.78 billion as of June 30, 2024, with $495 million in convertible notes repaid in August 2024.

Financial highlights

• Q2 2024 total revenues reached $712 million, a 20% increase year-over-year and 25% on a constant currency basis; H1 2024 revenues were $1.36 billion, up 14% year-over-year.

• Gross margin improved to 81.7% from 78.1% in Q2 2023, and operating income for Q2 2024 was $120.5 million, up from $65.6 million in Q2 2023.

• Q2 non-GAAP operating margin was 31.2% (up from 21.7%); GAAP operating margin was 16.9% (up from 11.0%).

• Q2 benefited from $20 million in incremental VOXZOGO revenue due to early supply availability and $20 million in large government orders for enzyme therapies.

• Net cash provided by operating activities was $165.7 million for H1 2024.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $2.75–$2.825 billion, representing ~15% growth at the midpoint.

• Non-GAAP operating margin guidance increased to 25–27%, a 7% expansion over 2023.

• Non-GAAP EPS guidance raised to $3.10–$3.25.

• Guidance does not reflect potential future business decisions from ongoing strategic review.

• Interest expense is expected to decrease following the repayment of the 2024 convertible notes.