12:03 PM EDT, 08/06/2024 (MT Newswires) -- BioMarin Pharmaceutical ( BMRN ) reported revenue of $712 million for the quarter, surpassing the $664 million forecast, driven by strong sales of Voxzogo and a $20 million one-time gain, RBC Capital Markets said in a note Tuesday.

"On Voxzogo, the company noted that supply is no longer constrained and label expansion for hypochondroplasia may be in 2027," RBC said, adding that BioMarin remains confident that the drug for treating achondroplasia could exceed $1 billion in revenue, given that only 20% of the potential market is penetrated.

On Valrox, BioMarin will narrow its commercial focus to the US, Italy, and Germany, and aims to make Valrox profitable by the end of next year, RBC said.

"Overall, we appreciate all the progress, but we also wonder whether discounting Valrox (instead of just narrowing its focus) would have been the better option to potentially boost M&A optionality, and we remain on the sidelines awaiting further clarity on the ongoing strategic portfolio review to be disclosed at the investor day on Sept. 4," RBC said.

RBC has a sector perform rating on BioMarin with a price target of $100.

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