BioMarin Reports Record Financial Results for the Fourth Quarter and Full-year 2023 and Provides Financial Guidance for 2024
- Strong FY'23 financial results driven by global VOXZOGO demand and enzyme products
- VOXZOGO revenues grew 18% driven by FDA approval for children under 5 years
- 2024 outlook focuses on value creation through strategic priorities
- Total revenues for Q4'23 increased by 20% compared to the same period in 2022
- GAAP net income increased by $20.6 million in Q4'23
- Non-GAAP income rose by $31.8 million in Q4'23
- Key 2024 priorities include maximizing VOXZOGO opportunity and ROCTAVIAN access
- R&D focus on productive assets and expanding margins for 2024
- Full-year 2024 financial guidance includes total revenues of $2.7-2.8 billion and Non-GAAP EPS of $2.60-2.80
- None.
Insights
The reported financial results from BioMarin Pharmaceutical Inc. demonstrate a significant year-over-year growth in revenues, with a notable increase in GAAP and Non-GAAP diluted earnings per share (EPS). The surge in VOXZOGO net revenues, particularly in Q4'23, indicates a robust market demand, further bolstered by the FDA's recent approval for an expanded patient demographic. This is a pivotal factor for investors, as it suggests a strong revenue trajectory for the product, which could lead to sustained growth for the company.
Furthermore, the company's 2024 financial outlook projects double-digit revenue growth and an acceleration of Non-GAAP EPS, which could signal a healthy financial position and operational efficiency. However, it is crucial to scrutinize the anticipated Non-GAAP operating margin expansion, as it reflects the company's expectation to manage costs effectively while scaling operations. Investors should monitor the company's ability to maintain or improve these margins, as they are indicative of BioMarin's operational success and potential for profit growth.
It is also important to note the decrease in KUVAN net product revenues, which could be attributed to the loss of market exclusivity and subsequent generic competition. This aspect of the report highlights the importance of product lifecycle management and the potential impact of patent cliffs on pharmaceutical companies' revenue streams.
BioMarin's financial success is closely tied to its strategic focus on rare diseases, with VOXZOGO's sales performance being a testament to the company's successful market penetration and the importance of FDA approvals in driving prescription volumes. The increased uptake of VOXZOGO following its approval for a younger patient population underscores the significance of regulatory milestones in the biopharmaceutical industry. This expanded indication could potentially lead to a longer duration of therapy per patient, contributing to the sustainability of sales growth.
From a research and development (R&D) perspective, the company's focus on prioritizing the most impactful R&D candidates is a strategic approach to maximize the return on investment in their pipeline. The planned pivotal studies for idiopathic short stature and other genetic conditions indicate BioMarin's commitment to expanding its portfolio and addressing unmet medical needs, which could have long-term implications for the company's growth and market position.
The pharmaceutical sector and particularly the rare disease market, is characterized by high barriers to entry due to the complexity of drug development and the need for specialized knowledge. BioMarin's strong performance in this niche market, highlighted by the impressive growth of VOXZOGO, positions the company competitively. The focus on operational excellence and cost optimization is a strategic move in response to the market's demand for both innovation and cost-effectiveness. Investors should consider the potential for BioMarin to leverage its current success into further market expansion, especially in light of its strategic priorities for 2024.
The company's plans to establish the ROCTAVIAN opportunity and expand access to this treatment for severe hemophilia A could represent another growth avenue. The impact of such initiatives on the stock market will largely depend on the company's ability to navigate the complex reimbursement landscape and the competitive dynamics within the hemophilia treatment space.
Total FY'23 Revenues of
VOXZOGO® Net Revenues of
BioMarin's 2024 Financial Outlook Reflects Anticipated Double-digit Total Revenue Growth, Significant Non-GAAP Operating Margin Expansion, and Non-GAAP Earnings Per Share Growing Faster than Revenues
Conference Call and Webcast Scheduled Today at 4:30 p.m. ET
"Strong financial results in 2023 were driven by global demand for VOXZOGO, the only approved treatment for children with achondroplasia, and contributions from our established enzyme products. VOXZOGO revenues grew
Financial Highlights (in millions of | |||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||
Total Revenues | $ 646.2 | $ 537.5 | 20 % | $ 2,419.2 | $ 2,096.0 | 15 % | |||||
Total Enzyme Product Revenues (1) | $ 448.0 | $ 405.1 | 11 % | $ 1,718.3 | $ 1,645.3 | 4 % | |||||
VIMIZIM® Net Product Revenues | $ 175.6 | $ 152.1 | 15 % | $ 701.0 | $ 663.8 | 6 % | |||||
VOXZOGO Net Product Revenues | $ 145.7 | $ 66.8 | 118 % | $ 469.9 | $ 169.1 | 178 % | |||||
NAGLAZYME® Net Product Revenues | $ 98.3 | $ 100.5 | (2) % | $ 420.3 | $ 443.8 | (5) % | |||||
PALYNZIQ® Net Product Revenues | $ 87.8 | $ 72.3 | 21 % | $ 303.9 | $ 255.0 | 19 % | |||||
BRINEURA® Net Product Revenues | $ 43.6 | $ 42.6 | 2 % | $ 161.9 | $ 154.3 | 5 % | |||||
ALDURAZYME® Net Product Revenues | $ 42.7 | $ 37.6 | 14 % | $ 131.2 | $ 128.4 | 2 % | |||||
KUVAN® Net Product Revenues | $ 36.7 | $ 53.6 | (32) % | $ 180.8 | $ 227.6 | (21) % | |||||
ROCTAVIAN Net Product Revenues | $ 2.7 | $ — | nm | $ 3.5 | $ — | nm | |||||
GAAP Net Income (Loss) (2) | $ 20.4 | $ (0.2) | $ 167.6 | $ 141.6 | |||||||
Non-GAAP Income (3) | $ 94.9 | $ 63.1 | $ 405.4 | $ 290.8 | |||||||
GAAP Diluted Earnings (Loss) per Share (EPS) | $ 0.11 | $ (0.00) | $ 0.87 | $ 0.75 | |||||||
Non-GAAP Diluted EPS (4) | $ 0.49 | $ 0.33 | $ 2.08 | $ 1.53 | |||||||
December 31, | December 31, | ||
Total cash, cash equivalents & investments | $ 1,684.9 | $ 1,625.4 |
(1) | Enzyme Products include ALDURAZYME, BRINEURA, NAGLAZYME, PALYNZIQ, and VIMIZIM. |
(2) | GAAP Net Income in the twelve months ended December 31, 2022 included a |
(3) | Non-GAAP Income is defined by the company as reported GAAP Net Income (Loss), excluding amortization expense, stock-based compensation expense, contingent consideration, and, in certain periods, certain other specified items. The company also includes a Non-GAAP adjustment for the estimated income tax impact of reconciling items. Refer to Non-GAAP Information beginning on page 9 of this press release for a complete discussion of the company's Non-GAAP financial information and reconciliations to the comparable information reported under |
(4) | Non-GAAP Diluted EPS is defined by the company as Non-GAAP Income divided by Non-GAAP diluted weighted-average shares outstanding. Non-GAAP weighted-average diluted shares outstanding is defined by the company as GAAP weighted-average diluted shares outstanding, adjusted to include any common shares issuable under the company's equity plans and convertible debt in periods when they are dilutive under Non-GAAP. |
nm | Not meaningful |
Financial Highlights:
- Total Revenues for the fourth quarter of 2023 were
$646.2 million 20% compared to the same period in 2022. The increase in Total Revenues was primarily attributed to higher VOXZOGO sales volume driven by new patients initiating therapy across all regions, which included a significant number of new patient starts in theU.S. for children under the age of 5 years. The increase was also due to higher VIMIZIM product revenues primarily driven by the timing of large government orders. This was partially offset by lower KUVAN product revenues attributed to continued generic competition as a result of the loss of market exclusivity. - GAAP Net Income increased by
$20.6 million $20.4 - Non-GAAP Income increased by
$31.8 million $94.9 million
2024 Strategic Priorities
In January, BioMarin management outlined key priorities focused on value creation through accelerating growth, optimizing efficiencies and driving operational excellence. For 2024, the company plans to provide material updates across the business, both scientific and financial, according to these strategic priorities:
Accelerate and maximize the VOXZOGO opportunity
- In the fourth quarter, the FDA approved VOXZOGO for children under 5 years of age. Approximately
70% of newU.S. treatment starts in the fourth quarter were from that age group following the age label expansion approval in October 2023. With VOXZOGO now approved for younger children in key large markets, product expansion is expected to accelerate across younger age groups throughout 2024. - The number of children with achondroplasia being treated with VOXZOGO increased
128% in 2023 compared to the end of 2022. As of December 31, 2023, 2,613 children with achondroplasia were being treated with VOXZOGO across 41 active markets, compared to 1,150 children on therapy at the end of 2022. - In the fourth quarter, BioMarin began the pivotal program with VOXZOGO for the treatment of children with hypochondroplasia. The 6-month run-in study will be followed by the 52-week randomized, double-blind, placebo-controlled phase of the 80-participant clinical trial, with the treatment study expected to begin mid-2024.
- BioMarin is engaging global health authorities in the first half of this year regarding development programs in idiopathic short stature and multiple genetic short stature pathway conditions, with plans to begin pivotal studies later this year.
Establish ROCTAVIAN opportunity
- As an important new treatment option for those with severe hemophilia A, BioMarin expects continued progress increasing ROCTAVIAN access and patients treated in 2024. This year, BioMarin's commercial team will continue to focus on key elements critical to supporting the uptake of ROCTAVIAN including, clinical eligibility, site readiness and patient and physician education.
- In January, the Italian Medicines Agency approved reimbursement for ROCTAVIAN in severe hemophilia A.
- In 2023, three patients were treated with ROCTAVIAN, two in
Germany and one in theU.S.
Focus R&D on the most productive assets
- During the first quarter of 2024, BioMarin began a strategic portfolio review of all R&D programs to determine which meet the criteria for further investment and advancement. A complete update on prioritized R&D assets, those with the highest potential patient impact and highest potential value creation for shareholders, will be communicated at our Investor Day later in 2024.
Accelerate EPS growth and expand margins
- BioMarin's 2024 financial outlook reflects anticipated year-over-year double-digit Total Revenue growth, reduced operating expenses as a percentage of revenue, acceleration of Non-GAAP Operating Margin expansion and Non-GAAP Earnings Per Share growing faster than revenue.
2024 Full-Year Financial Guidance
BioMarin does not provide guidance for GAAP reported financial measures (other than revenue) or a reconciliation of forward-looking Non-GAAP financial measures to the most directly comparable GAAP reported financial measures because the company is unable to predict with reasonable certainty the financial impact of changes resulting from our strategic portfolio and business operating model reviews; potential future asset impairments; gains and losses on investments; and other unusual gains and losses without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. As such, any reconciliations provided would imply a degree of precision that could be confusing or misleading to investors.
Item | 2024 Guidance (in millions, except % and EPS amounts) | |||||
Total Revenues | to | |||||
Non-GAAP Operating Margin % (1) | 23 % | to | 24 % | |||
Non-GAAP Diluted EPS (2) | to | |||||
(1) | Non-GAAP Operating Margin percentage is defined by the company as GAAP Income from Operations, excluding amortization of intangible assets, stock based compensation expense and certain specified items divided by Total Revenues. |
(2) | Non-GAAP Diluted EPS guidance assumes approximately 200 million weighted-average diluted shares outstanding. |
BioMarin will host a conference call and webcast to discuss fourth quarter and full year 2023 financial results and full-year 2024 financial guidance today, Thursday, February 22, 2024, at 4:30 p.m. ET. This event can be accessed through this link or on the investor section of the BioMarin website at www.biomarin.com.
Replay Dial-in Number: 800-770-2030 | |
International Dial-in Number: 646-960-0683 | Replay International Dial-in Number: 647-362-9199 |
No Conference ID: 1816377 | Conference ID: 1816377 |
About BioMarin
Founded in 1997, BioMarin is a global biotechnology company dedicated to transforming lives through genetic discovery. The company develops and commercializes targeted therapies that address the root cause of genetic conditions. BioMarin's robust research and development capabilities have resulted in multiple innovative commercial therapies for patients with rare genetic disorders. The company's distinctive approach to drug discovery has produced a diverse pipeline of commercial, clinical, and pre-clinical candidates that address a significant unmet medical need, have well-understood biology, and provide an opportunity to be first-to-market or offer a substantial benefit over existing treatment options. For additional information, please visit www.biomarin.com.
Forward-Looking Statements
This press release and the associated conference call and webcast contain forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc. (BioMarin), including, without limitation, statements about: the expectations of Total Revenues, Non-GAAP Operating Margin percentage, and Non-GAAP Diluted EPS for the full-year 2024; cash flows from operating activities; BioMarin's plans to reduce operating expenses and expand margins; BioMarin's focus on its strategic priorities and the anticipated benefits from the same; the timing of orders for commercial products; the timing of BioMarin's clinical development and commercial prospects, including announcements of data from clinical studies and trials; the clinical development and commercialization of BioMarin's product candidates and commercial products, including (i) the potential to leverage VOXZOGO in conditions beyond achondroplasia, such as hypochondroplasia as well as idiopathic short stature and other genetic short stature pathway conditions, and (ii) the product expansion opportunities for ROCTAVIAN, including results from any related clinical studies; the commercialization of BioMarin's products, including (i) the anticipated start and growth of commercial sales of VOXZOGO in additional countries, and (ii) the commercialization of ROCTAVIAN for the treatment of severe hemophilia A in the
These forward-looking statements are predictions and involve risks and uncertainties such that actual results may differ materially from these statements. These risks and uncertainties include, among others: BioMarin's success in the commercialization of its commercial products, impacts of macroeconomic and other external factors on BioMarin's operations; results and timing of current and planned preclinical studies and clinical trials and the release of data from those trials; BioMarin's ability to successfully manufacture its commercial products and product candidates; the content and timing of decisions by the FDA, the European Commission and other regulatory authorities concerning each of the described products and product candidates; the market for each of these products; actual sales of BioMarin's commercial products; the introduction of generic versions of BioMarin's commercial products, in particular generic versions of KUVAN; and those factors detailed in BioMarin's filings with the Securities and Exchange Commission (SEC), including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 as such factors may be updated by any subsequent reports. Stockholders are urged not to place undue reliance on forward-looking statements, which speak only as of the date hereof. BioMarin is under no obligation, and expressly disclaims any obligation to update or alter any forward-looking statement, whether as a result of new information, future events or otherwise.
BioMarin®, BRINEURA®, KUVAN®, NAGLAZYME®, PALYNZIQ®, VIMIZIM® and VOXZOGO® are registered trademarks of BioMarin Pharmaceutical Inc., or its affiliates. ROCTAVIAN® is a trademark of BioMarin Pharmaceutical Inc., with registration in
Contact: | ||
Investors: | Media: | |
Traci McCarty | Marni Kottle | |
BioMarin Pharmaceutical Inc. | BioMarin Pharmaceutical Inc. | |
(415) 455-7558 | (650) 374-2803 |
BIOMARIN PHARMACEUTICAL INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
December 31, 2023 and December 31, 2022 | |||
(In thousands of | |||
December 31, 2023 | December 31, 2022 ⁽¹⁾ | ||
ASSETS | (unaudited) | ||
Current assets: | |||
Cash and cash equivalents | $ 755,127 | $ 724,531 | |
Short-term investments | 318,683 | 567,006 | |
Accounts receivable, net | 633,704 | 461,316 | |
Inventory | 1,107,183 | 894,083 | |
Other current assets | 141,391 | 104,521 | |
Total current assets | 2,956,088 | 2,751,457 | |
Noncurrent assets: | |||
Long-term investments | 611,135 | 333,835 | |
Property, plant and equipment, net | 1,066,133 | 1,073,366 | |
Intangible assets, net | 294,701 | 338,569 | |
Goodwill | 196,199 | 196,199 | |
Deferred tax assets | 1,545,809 | 1,505,412 | |
Other assets | 171,538 | 176,236 | |
Total assets | $ 6,841,603 | $ 6,375,074 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 683,147 | $ 572,959 | |
Short-term convertible debt, net | 493,877 | — | |
Short-term contingent consideration | — | 15,925 | |
Total current liabilities | 1,177,024 | 588,884 | |
Noncurrent liabilities: | |||
Long-term convertible debt, net | 593,095 | 1,083,019 | |
Other long-term liabilities | 119,935 | 100,015 | |
Total liabilities | 1,890,054 | 1,771,918 | |
Stockholders' equity: | |||
Common stock, | 189 | 186 | |
Additional paid-in capital | 5,611,562 | 5,404,895 | |
Company common stock held by the Nonqualified Deferred Compensation Plan | (9,860) | (8,859) | |
Accumulated other comprehensive loss | (28,788) | (3,867) | |
Accumulated deficit | (621,554) | (789,199) | |
Total stockholders' equity | 4,951,549 | 4,603,156 | |
Total liabilities and stockholders' equity | $ 6,841,603 | $ 6,375,074 | |
(1) | December 31, 2022 balances were derived from the audited Consolidated Financial Statements included in the company's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the |
BIOMARIN PHARMACEUTICAL INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Three and Twelve Months Ended December 31, 2023 and 2022 | |||||||
(In thousands of | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
(unaudited) | (unaudited) | (unaudited) | |||||
REVENUES: | |||||||
Net product revenues | $ 633,148 | $ 525,492 | $ 2,372,538 | $ 2,042,025 | |||
Royalty and other revenues | 13,059 | 12,046 | 46,688 | 54,014 | |||
Total revenues | 646,207 | 537,538 | 2,419,226 | 2,096,039 | |||
OPERATING EXPENSES: | |||||||
Cost of sales | 135,478 | 127,290 | 514,854 | 483,669 | |||
Research and development | 206,250 | 172,751 | 746,773 | 649,606 | |||
Selling, general and administrative | 275,024 | 245,739 | 937,291 | 854,009 | |||
Intangible asset amortization and contingent consideration | 15,236 | 16,258 | 62,211 | 67,193 | |||
Gain on sale of nonfinancial assets, net | — | — | — | (108,000) | |||
Total operating expenses | 631,988 | 562,038 | 2,261,129 | 1,946,477 | |||
INCOME (LOSS) FROM OPERATIONS | 14,219 | (24,500) | 158,097 | 149,562 | |||
Interest income | 18,044 | 8,710 | 58,339 | 18,034 | |||
Interest expense | (6,098) | (3,626) | (17,335) | (15,970) | |||
Other income (expense), net | (6,838) | 1,858 | (10,538) | (2,050) | |||
INCOME (LOSS) BEFORE INCOME TAXES | 19,327 | (17,558) | 188,563 | 149,576 | |||
Provision for (benefit from) income taxes | (1,048) | (17,309) | 20,918 | 8,015 | |||
NET INCOME (LOSS) | $ 20,375 | $ (249) | $ 167,645 | $ 141,561 | |||
EARNINGS (LOSS) PER SHARE, BASIC | $ 0.11 | $ (0.00) | $ 0.89 | $ 0.76 | |||
EARNINGS (LOSS) PER SHARE, DILUTED | $ 0.11 | $ (0.00) | $ 0.87 | $ 0.75 | |||
Weighted average common shares outstanding, basic | 188,479 | 186,028 | 187,834 | 185,266 | |||
Weighted average common shares outstanding, diluted | 191,838 | 186,028 | 191,595 | 188,963 | |||
BIOMARIN PHARMACEUTICAL INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Twelve Months Ended December 31, 2023 and 2022 | |||
(In thousands of | |||
Twelve Months Ended December 31, | |||
2023 | 2022 | ||
(unaudited) | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 167,645 | $ 141,561 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 104,386 | 101,969 | |
Non-cash interest expense | 4,188 | 4,117 | |
Amortization of premium (accretion of discount) on investments | (9,228) | 3,043 | |
Stock-based compensation | 207,099 | 196,308 | |
Gain on sale of nonfinancial assets, net | — | (108,000) | |
Impairment of assets | 38,608 | — | |
Deferred income taxes | (44,981) | (52,087) | |
Unrealized foreign exchange loss (gain) | 28,446 | (14,287) | |
Non-cash changes in the fair value of contingent consideration | — | 1,704 | |
Other | (365) | (2,043) | |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (190,435) | (82,033) | |
Inventory | (157,058) | (68,264) | |
Other current assets | (50,335) | 7,822 | |
Other assets | (31,149) | (19,859) | |
Accounts payable and other short-term liabilities | 68,853 | 59,018 | |
Other long-term liabilities | 23,585 | 6,933 | |
Net cash provided by operating activities | 159,259 | 175,902 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (96,691) | (120,959) | |
Maturities and sales of investments | 864,863 | 619,995 | |
Purchases of investments | (868,496) | (611,809) | |
Proceeds from sale of nonfinancial assets | — | 103,325 | |
Purchase of intangible assets | (10,920) | (10,581) | |
Net cash used in investing activities | (111,244) | (20,029) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from exercises of awards under equity incentive plans | 69,353 | 69,333 | |
Taxes paid related to net share settlement of equity awards | (76,319) | (54,283) | |
Payments of contingent consideration | (9,475) | (31,095) | |
Principal repayments of financing leases | (2,286) | (2,605) | |
Net cash used in financing activities | (18,727) | (18,650) | |
Effect of exchange rate changes on cash | 1,308 | 32 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 30,596 | 137,255 | |
Cash and cash equivalents: | |||
Beginning of period | $ 724,531 | $ 587,276 | |
End of period | $ 755,127 | $ 724,531 | |
Non-GAAP Information
The results presented in this press release include both GAAP information and Non-GAAP information. Non-GAAP Income is defined by the company as GAAP Net Income (Loss) excluding amortization of intangible assets, stock-based compensation expense, contingent consideration expense, and, in certain periods, certain other specified items, as detailed below when applicable. Non-GAAP Operating Margin percentage is defined by the company as GAAP Income from Operations, excluding amortization of intangible assets, stock based compensation expense, contingent consideration expense, and, in certain periods, certain other specified items, divided by Total Revenues. The company also includes a Non-GAAP adjustment for the estimated tax impact of the reconciling items. Non-GAAP Diluted EPS is defined by the company as Non-GAAP Income divided by Non-GAAP diluted shares outstanding. The company's presentation of percentage changes in total revenues at constant currency rates, which is computed using current period local currency sales at the prior period's foreign exchange rates, is also a Non-GAAP financial measure. This measure provides information about growth (or declines) in the company's total revenue as if foreign currency exchange rates had not changed between the prior period and the current period.
BioMarin regularly uses both GAAP and Non-GAAP results and expectations internally to assess its financial operating performance and evaluate key business decisions related to its principal business activities: the discovery, development, manufacture, marketing and sale of innovative biologic therapies. Because Non-GAAP Income, Non-GAAP Operating Margin percentage, Non-GAAP Diluted EPS, Non-GAAP Diluted Shares and constant currency are important internal measurements for BioMarin, the company believes that providing this information in conjunction with BioMarin's GAAP information enhances investors' and analysts' ability to meaningfully compare the company's results from period to period and to its forward-looking guidance, and to identify operating trends in the company's principal business. BioMarin also uses Non-GAAP Income internally to understand, manage and evaluate its business and to make operating decisions, and compensation of executives is based in part on this measure.
Non-GAAP Income and its components are not meant to be considered in isolation or as a substitute for, or superior to comparable GAAP measures and should be read in conjunction with the consolidated financial information prepared in accordance with GAAP. Investors should note that the Non-GAAP information is not prepared under any comprehensive set of accounting rules or principles and does not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. Investors should also note that these Non-GAAP financial measures have no standardized meaning prescribed by GAAP and, therefore, have limits in their usefulness to investors. In addition, from time to time in the future there may be other items that the company may exclude for purposes of its Non-GAAP financial measures; likewise, the company may in the future cease to exclude items that it has historically excluded for purposes of its Non-GAAP financial measures. Because of the non-standardized definitions, the Non-GAAP financial measure as used by BioMarin in this press release and the accompanying tables may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies.
The following tables present the reconciliation of GAAP reported to Non-GAAP adjusted financial information:
Reconciliation of GAAP Reported Net Income (Loss) to Non-GAAP Income(1) | |||||||
(In millions of | |||||||
(unaudited) | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
GAAP Reported Net Income (Loss) | $ 20.4 | $ (0.2) | $ 167.6 | $ 141.6 | |||
Adjustments | |||||||
Stock-based compensation expense - COS | 4.5 | 4.3 | 17.6 | 17.7 | |||
Stock-based compensation expense - R&D | 16.3 | 13.8 | 65.7 | 61.7 | |||
Stock-based compensation expense - SG&A | 34.0 | 28.7 | 123.8 | 116.9 | |||
Amortization of intangible assets | 15.2 | 15.7 | 62.2 | 62.8 | |||
Contingent consideration | — | 0.6 | — | 4.4 | |||
Gain on sale of non-financial assets (2) | — | — | — | (108.0) | |||
Severance and employee termination benefits (3) | — | 18.2 | (0.5) | 23.0 | |||
Asset impairments (4) | 14.0 | — | 14.0 | — | |||
Loss on investments (5) | 11.9 | — | 24.5 | — | |||
Income tax effect of adjustments | (21.4) | (18.0) | (69.5) | (29.3) | |||
Non-GAAP Income | $ 94.9 | $ 63.1 | $ 405.4 | $ 290.8 | |||
Reconciliation of Certain GAAP Reported Information to Non-GAAP Information(1) | |||||||
(in millions, except per share data) | |||||||
(unaudited) | |||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
GAAP Diluted EPS | $ 0.11 | $ (0.00) | $ 0.87 | $ 0.75 | |||
Adjustments | |||||||
Stock-based compensation expense | 0.27 | 0.24 | 1.04 | 1.02 | |||
Amortization of intangible assets | 0.08 | 0.08 | 0.31 | 0.33 | |||
Contingent consideration | — | — | — | 0.02 | |||
Gain on sale of non-financial assets (2) | — | — | — | (0.56) | |||
Severance and employee termination benefits (3) | — | 0.09 | — | 0.12 | |||
Asset impairments (4) | 0.07 | — | 0.07 | — | |||
Loss on investments (5) | 0.06 | — | 0.12 | — | |||
Income tax effect of adjustments | (0.10) | (0.09) | (0.33) | (0.15) | |||
Non-GAAP Diluted EPS | $ 0.49 | $ 0.33 | $ 2.08 | $ 1.53 | |||
(1) | Certain amounts may not sum or recalculate due to rounding. |
(2) | Represents the net gain in the first quarter of 2022 on the sale to a third party of the PRV the company received from the FDA in connection with the |
(3) | Represents severance and employee termination benefit charges and subsequent adjustments included in SG&A related to the company's organizational redesign announced in the fourth quarter of 2022. |
(4) | Represents the write-off of capitalized tooling and fixed assets in SG&A associated with the company's decision to cease development of the first generation VOXZOGO pen device in the fourth quarter of 2023. |
(5) | Represents the impairment losses on an investment in non-marketable equity securities and a convertible note recorded in Other income (expense), net in the first and fourth quarter of 2023, respectively. |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
GAAP Weighted-Average Dilutive Shares Outstanding | 191.8 | 186.0 | 191.6 | 189.0 | |||
Adjustments | |||||||
Common stock issuable under the company's equity plans | — | 4.1 | — | — | |||
Common stock issuable under company's convertible debt (1) | 8.4 | 4.0 | 8.4 | 4.0 | |||
Non-GAAP Weighted-Average Dilutive Shares Outstanding | 200.2 | 194.1 | 200.0 | 193.0 | |||
(1) | Common stock issuable under the company's convertible debt was excluded from the computation of GAAP Weighted-Average Dilutive Shares Outstanding when they were anti-dilutive. If converted, the company would issue 4.0 million shares under the convertible notes due in 2024 and 4.4 million shares under the convertible notes due in 2027. |
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SOURCE BioMarin Pharmaceutical Inc.
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