What Happened?
Shares of biotech company BioMarin Pharmaceutical (NASDAQ:BMRN) jumped 2.6% in the afternoon session after the stock's positive momentum continued as the company agreed to acquire Amicus Therapeutics for a total equity value of about $4.8 billion, a move expected to boost future growth. BioMarin's President and CEO, Alexander Hardy, said the transaction was expected to accelerate the company's revenue growth and strengthen its financial outlook. The deal was viewed positively by analysts, with Truist Securities raising its price target on the stock to $100 from $80, noting the acquisition aligned with BioMarin's focus on rare diseases. In other news, the company also announced it had stopped the development of its investigational BMN 349 treatment for a specific type of liver disease.
After the initial pop the shares cooled down to $60.97, up 2.9% from previous close.
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What Is The Market Telling Us
BioMarin Pharmaceutical’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 19% on the news that the company announced it agreed to acquire Amicus Therapeutics for approximately $4.8 billion in an all-cash deal.
The transaction valued Amicus at $14.50 per share, which represented a 33% premium to its last closing price. The acquisition expanded BioMarin's position as a leader in rare diseases by adding two marketed treatments, Galafold and Pombiliti-Opfolda, to its portfolio. Investors reacted positively as the move was expected to accelerate revenue growth and boost earnings per share within the first year after closing. The deal also received unanimous approval from the boards of directors of both companies, signaling strong support for the merger.
BioMarin Pharmaceutical is down 8.3% since the beginning of the year, and at $60.97 per share, it is trading 16.3% below its 52-week high of $72.83 from March 2025. Investors who bought $1,000 worth of BioMarin Pharmaceutical’s shares 5 years ago would now be looking at an investment worth $690.51.
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