BioMarin Pharmaceutical (NASDAQ:BMRN) introduced its longer-term outlook and plans to implement a $500M cost transformation program at its investor day event today.
The New York-based pharma has undertaken a strategic transformation of its operations over the last nine months, reviewing its corporate plan including its new company structure and updated organizational model, now built around three business units, Enzyme Therapies, Skeletal Conditions and Roctavian, its gene therapy for adults with severe hemophilia A.
The updated strategy will also see the company executing a $500M cost transformation that is expected to contribute to adjusted operating margin targets set for 2026 and beyond. The plan calls for focused Roctavian investment to help achieve profitability by YE25, external spend optimization and enterprise-wide reorganization, among other things.
The drugmaker outlined its long-term financial outlook, based on its strategic plan to drive revenue growth and expand adjusted operating margin. For 2027, it expects non-GAAP operating margin of low-to-mid 40%s (starting with 40% in 2026) and revenue of $4B, higher than Wall Street estimates of $3.75B.
It also reaffirmed its forecast for this year, expecting revenue in the range of $2.750B to $2.825B ($2.80B consensus) and adjusted diluted earnings per share of $3.10 to $3.25 ($3.23 consensus). Adjusted operating margin is seen at 26% to 27%.
Furthermore, the management prioritized innovation, targeting seven indications in Phase 3 development by 2027 and 11 launches by 2034.
Shares of the biotechnology firm dipped 2.35% after the news and are down over 9% YTD.
