BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the 11 best debt-free stocks to invest in right now. On July 2, Morgan Stanley analyst Sean Laaman initiated coverage on BioMarin with a Buy rating and a $97 price target, citing a favorable outlook despite ongoing competitive concerns.
Laaman’s optimism centers on Voxzogo, BioMarin’s therapy for achondroplasia, a rare disorder affecting bone growth. While Ascendis Pharma’s TransCon CNP could pose competition due to its longer half-life, Laaman notes that it still faces key challenges, including ongoing patent litigation. Importantly, he believes investors may be underestimating Voxzogo’s broader potential, particularly in other indications such as hypochondroplasia.
A close up photograph of a vial of a new biotechnological drug candidate in development.
The analyst also pointed to the CANOPY clinical program, which is evaluating Voxzogo in conditions linked to SHOX gene mutations, as a promising path for further label expansion. In Laaman’s view, this pipeline optionality is not fully reflected in BioMarin’s current valuation.
Trading near a 10-year low, the stock appears to already account for most of the perceived risks. Given the strength of Voxzogo’s current performance, expansion potential, and an underappreciated pipeline, Laaman sees a compelling upside case for BioMarin shares from current levels.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is a biotechnology company that develops and commercializes therapies for rare diseases and medical conditions worldwide.
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Disclosure: None. This article is originally published at Insider Monkey.
