Serious diseases candidate
The Novato, CA headquartered BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and commercializes drugs for serious diseases and medical conditions. I’ve written positively on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) before, notably in my February piece titled This Mid-Cap Pharmaceutical is a Prime Takeover Target.
Shares of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) rallied a massive 25% between my article publication and May 14, the date in which the American Society for Clinical Oncology released the abstracts for BioMarin’s latest drug candidate. Expectations appeared too high for the new drug, as BioMarin’s shares reversed course from a record high of $71.56 following the data release at ASCO 2013.
The drug candidate, codenamed BMN-673, is a PARP inhibitor designed to treat patients with solid tumors. Chief executive Jean-Jacques Bienaime presented at the Goldman Sachs Group Inc (NYSE:GS) conference and highlighted BMN-673, in addition to the promising other drugs in BioMarin’s pipeline.
In addition to BMN-673, BioMarin is seeking U.S. approval for Vimizim, an innovative drug for morquio A syndrome. The Food and Drug Administration recently announced it has designated a “priority review” status for Vimizim and a review date is set for Feb. 28, 2014.
All in all, Wall Street remains optimistic on BioMarin following the Goldman Sachs Group Inc (NYSE:GS) presentation. Analysts at Goldman maintain a “buy” rating and $80 price target on the company’s shares.
Foolish takeaway
More than 120 companies from the pharmaceutical, medical devices, and biotechnology industries presented at the recent Goldman Sachs conference. With a consistent history of innovation and above-average returns, the healthcare sector continues to be of vital importance for all investors.
Aetna appears well-situated to profit under the Affordable Care Act. The company is achieving economies of scale and should deliver superior returns to its peers. Expectations became too high at BioMarin Pharmaceutical, but the stock could reward investors with catalysts in the second half of 2013.
Finally, readers who prefer to own a basket of healthcare stocks will outperform with the Health Care SPDR, which offers great diversification.
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John Macris has no position in any stocks mentioned. The Motley Fool recommends BioMarin Pharmaceutical. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Highlights from the Goldman Sachs Healthcare Conference originally appeared on Fool.com is written by John Macris.
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