Armed with dwarfism med Voxzogo and hemophilia A gene therapy Roctavian, BioMarin Pharmaceutical recently turned a corner into profitability after many years operating at a loss. Now, the drugmaker has reportedly garnered the attention of activist investor Elliott Management.
Elliott—known for agitating for change at life sciences firms like GSK and Catalent—has built a stake in BioMarin amid months of discussions over the company’s future, Reuters first reported Tuesday. Elliott has pumped more than $1 billion into the BioMarin stake, according to the news service.
BioMarin, which focuses on rare and genetic disorders, is valued at about $16 billion. The company's stock was up about 12% on Tuesday.
Elliott declined to comment on the matter, and BioMarin did not immediately respond to Fierce Pharma’s request for comment.
News of Elliott’s potential interest in the San Rafael, California-based company comes at a pivotal moment for BioMarin, which recently announced that its longtime CEO Jean-Jacques Bienaimé is headed for the exit on Dec. 1 after 18 years at the helm.
In a twist that surprised many industry watchers, former Genentech CEO Alexander Hardy quit his previous post to replace Bienaimé upon his retirement next month.
When Bienaimé took over BioMarin in 2005, the company was collecting some $26 million annually from its one marketed product, enzyme replacement therapy Naglazyme.
Now, thanks to dwarfism med Voxzogo and hemophilia A gene therapy Roctavian, BioMarin is posting profits—and it’s grown its workforce to more than 3,000 people along the way.
Meanwhile, BioMarin has charted several wins in recent months, including broadening its Voxzogo label at the FDA to include children younger than 5. The company has also finalized some reimbursement steps for its pricey gene therapy Roctavian, which passed muster with U.S. regulators in late June.
Last week, the company reported third-quarter sales of $581.3 million, up 15% over the same period in 2022.
As it stands, BioMarin is on track to hit a projected $3 billion in 2024 revenue, outgoing CEO Bienaimé said in the company’s earnings report.
Elliott, for its part, made waves this summer on reports that the activist investor was angling for a shake-up at contract manufacturer Catalent. The Wall Street Journal first reported in July that Elliott had acquired a stake in Catalent in a bid to shuffle the drugmaker’s board.
In late August, Catalent struck a cooperation agreement with Elliott in line with its fourth-quarter earnings release. Plus, the CDMO unveiled a sweeping governance shake-up.
Under Elliott’s guidance, Catalent has added four new independent directors to its board of directors. They are Steven Barg, global head of corporate engagement at Elliott; Pfizer’s former chief financial officer Frank D’Amelio; Genzyme veteran and PTC Therapeutics board member Stephanie Okey; and Michelle Ryan, a former treasurer at Johnson & Johnson.