BioMarin Pharmaceutical's (BMRN) Alesta acquisition adds a new pipeline opportunity and supports long-term growth, Wedbush Securities said in a note Tuesday.
The company said earlier Tuesday that it is acquiring Alesta Therapeutics for as much as $490 million with the goal of gaining its lead clinical-stage asset, ALE1, to treat hypophosphatasia.
BioMarin ended Q2 with $874 million in cash and expects to update its full-year guidance after the deal closes, Wedbush analysts said, adding that the acquisition is consistent with management's guidance for a steady flow of business development activity across development stages over the next 12 to 18 months.
Near term, the focus will likely remain on growing market share of BioMarin's commercial portfolio, including newly acquired Galafold for Fabry disease and Pombiliti plus Opfolda for Pompe disease, the analysts said.
Alesta and other potential acquisitions "could provide long-term growth potential by allowing BioMarin to leverage the company's historical strength in developing innovative medicines through FDA approval," the analysts said.
Wedbush has an outperform rating and a $94 price target on BioMarin Pharmaceutical.
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