BioMarin Incurs $283M IPR&D Expense Impacting Q3 Earnings
BioMarin Pharmaceutical (BMRN) announced it will record a one-time in-process research and development expense of $283 million for the third quarter. This charge is expected to reduce both GAAP and non-GAAP diluted earnings per share by $1.50, with an updated non-GAAP EPS estimate now at $1.25 for Q3. The IPR&D expense reflects ongoing investments in research projects that have not yet reached commercialization stages. The company has also faced recent challenges including the halt of clinical studies for its drug Voxzogo in treating Noonan syndrome and a shift in market perception due to overestimation concerns around product erosion. Despite these setbacks, BioMarin remains under an 'outperform' rating at BMO, suggesting analysts still see potential despite near-term financial headwinds.
Tickers: $BMRN
Topics: EPS impact pharmaceutical R&D expenses