Healthcare Heats Up | BioMarin (BMRN), Celgene (CELG), Gilead (GILD)


BioMarin Pharmaceutical Inc. (NASDAQ: BMRN)

Shares of BMRN soared higher in Thursday’s trading by over 12% on heavy volume after the company reported very positive data of Phase II trials for their drug BMN-111, which treats dwarfism.


Wolfgang Dummer, the VP of clinical development of BMRN noted,

“We are very encouraged to have observed evidence of activity with vosoritide in children participating in our Phase 2 study…In children receiving the highest dose of 15 micrograms per kilogram daily, we observed a 50% increase in mean annualized growth velocity compared to their own natural history control growth velocity. This increase in growth velocity, if maintained, could allow children with achondroplasia to resume a normalized growth rate…More importantly, vosoritide was well tolerated in all dose cohorts and we have observed no major safety concerns to date. Based on these results, we intend to move into pivotal registration study discussions with health authorities with a does of 15 micrograms per kilogram daily. In addition, to support further exploration of a dose that may enable “catch-up” growth in the event of delayed treatment, we intend to study 30 micrograms per kilogram daily in ancillary studies. The next step in our development plan is to review this Phase 2 data with health authorities and our outside advisors to deelop our path forward with registration enabling studies.”

BMRN is growing in popularity among analysts and out of the 21 currently covering BMRN, eighteen maintain a Buy rating and three hold ratings putting the consensus price at roughly $134.

BioMarin Pharmaceutical Inc. develops and commercializes pharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and internationally. Yahoo! Finance

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Celgene Corporation (NASDAQ: CELG)

CELG was a top performer in the healthcare sector yesterday as shares surged higher by over 4% on above average volume after the company had just approved up to an additional $4 billion of stock buyback, effective immediately.


In recent years, CELG has shown stellar performance financially with the majority of credit due to the breakthrough hit of Revlimid, a drug used to treat blood cancer. Revilimid’s huge success enabled CELG to grow revenues by a steady 20% on an annual basis for the past 5 years. How long can CELG sustain this strength?

On a negative note, Celgene’s rapid growth has been almost exclusively attributed to Revilimid as this is where over half of 2014 revenue was created. In the event a better drug were to be developed by a competitor or complications arise from the existing drug, CELG stock would be sure to experience significant pressure.

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies to treat cancer and inflammatory diseases in the United States and Internationally. Yahoo! Finance

Gilead Sciences Inc. (NASDAQ: GILD)

GILD also traded higher Thursday, closing higher by nearly 2%. GILD only added to the momentum among the majority of the healthcare sector and more specifically, biotech’s.


GILD developed ground breaking technology in the treatment of HIV with their drugs Atripla and Truvada which solidified the company’s existence as a biotech powerhouse. More recently, GILD has focused on the treatment of Hepatitis C with newly created Harvoni and Sovaldi drugs.

The most attractive aspect of GILD is the well stocked pipeline of drugs in Phase III trials which makes for a much more balanced profile and not reliant upon the success of one specific drug. In addition, GILD has approved a buyback of up to $15 billion in common stock, significantly brightening the outlook for investors.

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in areas of unmet medical need in North America, South America, Europe, and the Asia-Pacific. Yahoo! Finance