BioMarin Pharmaceutical(BMRN)2025-02-24 18:54Financial Performance - Total revenues for 2024 reached $2.9 billion, a 17.9% increase from $2.4 billion in 2023[360] - Net income for 2024 was $426.9 million, significantly up from $167.6 million in 2023, marking a 154.5% increase[360] - Total net product revenues for 2024 were $2.8 billion, an increase of $436.9 million compared to $2.4 billion in 2023[365] - Cash and cash equivalents rose to $942.8 million in 2024, an increase of $187.7 million from $755.1 million in 2023, while total cash, cash equivalents, and investments slightly decreased by $26.0 million[392] - Net cash provided by operating activities increased to $572.8 million in 2024 from $159.3 million in 2023, a rise of $413.5 million[394] - Net cash provided by investing activities improved to $136.5 million in 2024 compared to a net cash used of $(111.2) million in 2023, an increase of $247.7 million[395] - Net cash used in financing activities rose to $(526.4) million in 2024 from $(18.7) million in 2023, an increase of $(507.7) million primarily due to the $495.0 million settlement of the 2024 Notes[396] Sales and Revenue Drivers - VOXZOGO sales increased by $265.2 million, reaching $735.1 million in 2024, driven by higher sales volume from new patients[365] - KUVAN revenues decreased by $59.9 million in 2024 due to increased generic competition following the loss of market exclusivity[367] - The unfavorable impact of foreign currency exchange rates on product sales was $100 million in 2024, primarily due to the weakening of the Argentine Peso and Japanese Yen[371] Research and Development - Research and development expenses for 2024 were $747.2 million, slightly up from $746.8 million in 2023[360] - The company completed a strategic portfolio assessment to prioritize research and development programs with the strongest potential for success[363] - Research and early pipeline expenses rose to $434.0 million in 2024, up 40.9% from $393.1 million in 2023, primarily due to pre-clinical activities for new VOXZOGO indications[377] - Later-stage clinical program expenses decreased significantly by 56.4%, from $119.0 million in 2022 to $27.6 million in 2024, as ROCTAVIAN was moved to marketed products following FDA approval[377] Expenses - Total SG&A expenses increased to $1,009.0 million in 2024, up 13.1% from $892.4 million in 2023, with G&A expenses rising by 31.1% due to severance and restructuring costs[379][380] - Cost of sales for 2024 was $580.2 million, up from $532.1 million in 2023, reflecting higher sales volumes[373] - Other expense, net decreased from $38.2 million in 2023 to $4.7 million in 2024, primarily due to lower foreign currency transaction losses and decreased loss on non-marketable securities[386] Tax and Interest - Provision for income taxes surged to $114.9 million in 2024, a significant increase from $20.9 million in 2023, driven by higher earnings and foreign-source income taxed in the U.S.[387] - Interest income increased to $74.9 million in 2024, a 28.5% rise from $58.3 million in 2023, attributed to higher balances and yields on cash equivalents and investments[384] - Interest expense decreased to $12.7 million in 2024, down 26.6% from $17.3 million in 2023, primarily due to the maturity of convertible debt[385] Financial Obligations and Risks - As of December 31, 2024, the company had purchase obligations of approximately $641.9 million, with $482.0 million expected to be paid in 2025[400] - The company had lease payment obligations of $48.0 million as of December 31, 2024, with $9.5 million payable in 2025[401] - As of December 31, 2024, the company was subject to contingent payments of $258.1 million, with up to $3.1 million potentially payable in 2025[402] - The liability for unrecognized tax benefits was $325.0 million as of December 31, 2024[403] - Approximately 51% of net product sales were denominated in foreign currencies during 2024, exposing the company to foreign currency exchange rate risks[416] - A hypothetical 10% adverse movement in foreign currency exchange rates could reduce the value of open forward contracts by approximately $129.6 million[418] - A 100 basis point increase in interest rates could result in a potential loss in fair value of the investment portfolio of approximately $8.5 million[422] Financial Instruments and Hedging - The company mitigates foreign currency exchange rate risks through foreign currency derivative hedging transactions[414] - The company does not use derivative financial instruments for speculative trading purposes, focusing instead on risk management[417] - The company's financial risk management policy limits derivative transactions to institutions with minimum credit ratings of A- or equivalent[424]