BioMarin Pharmaceutical Annual Report 2007

Plain-text annual report

2007 Annual Report Accelerating Development. Delivering Breakthrough Treatments Worldwide. BIOMARIN PHARMACEUTICAL INC. page 1 Th ree products in 10 years. Since it was founded in 1997, BioMarin has successfully advanced three breakthrough products from research through FDA approval to patients – a remarkable accomplishment in the pharmaceutical industry. By cultivating expertise in research, development and manufacturing, and by streamlining clinical and regulatory development, BioMarin is providing rapid access to treatment and support services to patients around the world suﬀ ering from rare inherited metabolic diseases. Th is is Liam. He is one of hundreds of patients in the U.S. now enjoying the beneﬁ ts of Kuvan™, the ﬁ rst FDA-approved treatment for phenylketonuria (PKU). PKU patients cannot break down phenylalanine (Phe), an amino acid found in food, which leads to high blood Phe levels that are toxic to the brain. When left untreated, this can result in mental retardation and other neurological problems. Before taking Kuvan, Liam struggled to keep his blood Phe levels under control but now he’s better able to manage his PKU. 2007 Annual Report page 2 BIOMARIN PHARMACEUTICAL INC. page 3 Preclinical Phase 1 Phase 2 Phase 3 BLA/NDA/MAA Commercialized Pipeline Naglazyme® (For MPS VI) Aldurazyme® (For MPS I) Kuvan™ (For PKU) 6R-BH4 (For CV Indications & Sickle Cell Disease) PEG-PAL (For PKU) BMN-174 (Small molecule correctors for Cystic Fibrosis) BMN-175 (Small molecule potentiators for Cystic Fibrosis) BMN-185 (IgA Protease for IgA Nephropathy) Other preclinical products Financial Highlights Record Level Stock Performance BioMarin’s stock continues to outperform the Nasdaq composite and the Nasdaq biotech index. In December 2007, BMRN was bolstered by a 28.7 percent increase following the FDA approval of Kuvan and closed the year with a 116 percent increase overall. Growing Market Capitalization This increase in BioMarin’s valuation is a reﬂ ection of the company’s strength of its core business – three growing products serving high unmet need populations, limited competitive threats and ﬁ nancial performance seen only among top tier biotech companies. $3,394 $500 $400 $300 $200 $100 $1,386 $742 2002 2003 2004 2005 2006 2007 BioMarin Nasdaq Composite Nasdaq Biotech Index $411 2004 2005 2006 2007 I would like to thank our patients, their families and physicians, and our corporate partners for helping to bring these important life-altering therapies to market. Thanks also to all of our employees and our Board of Directors for their hard work, dedication and passion for the patients we serve. Together, they have brought three novel products to market and continue to prove our expertise in providing high-value biopharmaceuticals to the patients who need them most. We appreciate your continued support and look forward to keep- ing you updated on our progress throughout the coming year. Sincerely, Jean-Jacques Bienaimé A Message from the CEO Th e year 2007 marked many signiﬁ cant milestones for BioMarin Pharmaceutical. In addition to growing product revenues and an advancing pipeline, we received FDA approval for Kuvan, our third product and the ﬁ rst drug therapy approved for the treatment of phenylketonuria (PKU). At remarkable speed, just over three years after ﬁ ling the IND, we are now delivering Kuvan to hundreds of patients in the U.S., and together with our partner Merck Serono, we look forward to the approval and launch of the product in Europe and abroad. BioMarin is a fully-integrated multinational commercial biopharmaceutical company with the expertise, resources and dedication to address serious unmet medical needs. We are committed to providing life-altering therapies to patients around the world. Increasing global revenues In 2007, sales of both Naglazyme and Aldurazyme grew at impressive rates, driven by the identiﬁ cation of new patients and the active efforts of our global commercial operations team to expand geographic reach. Aldurazyme sales increased 28.5 percent over sales in 2006, and BioMarin’s proﬁ t in BioMarin/Genzyme LLC increased 58.0 percent over 2006. Looking forward, the restructuring of the joint venture at the begin- ning of 2008 will provide increased clarity to our ﬁ nancial reporting and result in more efﬁ cient operations. Outstanding performance of Naglazyme, our ﬁ rst independently manufactured and com- mercialized product, continues to demonstrate that BioMarin has the expertise to successfully develop and commercialize products, which positions us as a strong stand-alone company. Sales of Naglazyme grew 85.4 percent compared to 2006 and we expect continued growth as we begin to provide product to additional regions of the world with high concen- trations of MPS VI patients, such as Latin America and Turkey. We expect that Kuvan, along with Aldurazyme and Naglazyme, will drive improvements in our bottom line in 2008 and beyond. As a result, we are expecting to reach full year proﬁ tability in 2008, a signiﬁ cant milestone for BioMarin. Furthermore, our record of proven commercial success, coupled with our strong cash position, enables us to pursue additional in-licensing or acquisition opportunities to augment our clinical stage pipe- line and ensure the continuation of double-digit revenue growth in the coming years. Advancing Product Pipeline Growing product revenues from Naglazyme, Aldurazyme and now Kuvan will help advance ongoing research and development efforts to strengthen our product pipeline. In 2007, we ﬁ led the investigational new drug (IND) application for PEG-PAL, (PEGylated recombinant phenylalanine ammonia lyase), an enzyme substitution therapy for the treatment of PKU, and the Phase I trial is expected to begin in the ﬁ rst half of 2008. We are hopeful that the posi- tive preclinical data showing sustained decreases in blood Phe levels in PKU mice will be replicated in humans. If proven safe and effective, PEG-PAL has tremendous potential and may have the ability to treat the entire spectrum of PKU patients by bringing patients’ Phe levels down to normal levels. In addition to its role in the treatment of PKU, 6R- BH4 is an enzyme co-factor linked to maintaining healthy endothelial function. To that end, we are performing a number of Phase 2 and exploratory studies to clarify its role in the treatment of various cardiovascular indications and sickle cell disease. Our pipeline also includes compounds in devel- opment for the treatment of cystic ﬁ brosis, IgA nephropathy and other rare diseases. Our goal is to ﬁ le one IND per year. Looking Ahead in 2008 We are proud of our many achievements of 2007. The launch of Kuvan represents an important milestone for both BioMarin and the PKU community and while we are extremely pleased to have delivered this promising treatment to market, we also recognize the need to continually deliver additional value. To that end, we are investing in our internal pipeline and aggressively but prudently pursuing in-licensing and acquisition opportunities. We remain passionately dedicated to serving MPS I, MPS VI and PKU patients and we continue seek- ing new ways to enhance value to both patients and investors. BIOMARIN PHARMACEUTICAL INC. page 4 2007 Annual Report page 5 BIOMARIN PHARMACEUTICAL INC. page 6 2007 Annual Report page 7 Delivering Breakthrough Treatments Worldwide BioMarin is providing important therapeutic treatments to hundreds of patients around the world who might otherwise go untreated. In 2007, the company continued to solidify its commercial presence in the United States and Europe, and is rapidly expanding into other regions such as Latin America and the Middle East where the incidence of MPS VI is more widespread. As a fully-integrated multinational commercial biotechnology company, BioMarin is leveraging its expertise in manufacturing, research, regulatory affairs and global commercial development, and is making signiﬁ cant strides in delivering ﬁ rst-to- market therapeutic treatments to patients with rare genetic diseases. In 2007 BioMarin received FDA approval for its third product, Kuvan (sapropterin dihydrochlo- ride) Tablets, the ﬁ rst drug therapy approved for the treatment of PKU. The company also ﬁ led an IND and is preparing to initiate clinical trials for PEG-PAL (PEGylated recom- binant phenylalanine ammonia lyase) to address the entire spectrum of PKU patients who do not respond to, or wish to reduce blood Phe levels beyond what is possible with Kuvan. Addressing new market opportunities. BioMarin is working to further diversify its product portfolio with various research and development programs. For example, BH4, the active ingredient in Kuvan, is currently being evaluated for a number of other indications such as sickle cell disease, pulmo- nary arterial hypertension and peripheral arterial disease. A variety of other promising preclinical programs are also being pursued with the goal of ﬁ ling one IND per year to ensure continued top-line growth. Building strength in numbers. During 2007, BioMarin expanded its employee population by 25 percent in support of the global commercializa- tion of Naglazyme®, the approval and launch of Kuvan, and the expansion of multiple research and development and clinical programs. Strong employment growth is expected to continue in the foreseeable future. BioMarin’s active global commercialization efforts are yielding hundreds of new MPS VI patients who can beneﬁ t from Naglazyme® (galsulfase), the company’s ﬁ rst independently developed and commercialized enzyme replacement therapy for mucopolysaccharidosis VI. Worldwide sales of the product increased more than 85 percent in 2007 and are expected to grow to more than $105 million in the coming year. In 2007, proﬁ tability of the BioMarin/ Genzyme LLC joint venture of Aldurazyme (laronidase for MPS I) grew at a rapid rate. As a result of the restruc- turing of the 50/50 joint venture, which became effective at the beginning of 2008, each company is now better able to maximize respective management and opera- tional efﬁ ciencies related to the product. Accelerating commercial success. Kuvan was approved in just a little over three years after the IND ﬁ ling and was launched within days of its approval by the FDA. Similarly, both Naglazyme and Aldurazyme were successfully developed and commercialized in about ﬁ ve years – a rate far surpassing that of industry standards. BioMarin is also aggressively pursuing ways to maximize its intellectual property position and signiﬁ cantly extend product exclusivity beyond the orphan protection timelines in the U.S. and abroad. BioMarin patients. BioMarin is committed to providing life-altering therapies to patients around the world who suﬀ er from rare genetic diseases. 2007 Annual Report page 8 Corporate Information BioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. Th e company’s portfolio comprises three approved products and multiple clinical and preclinical product candidates. Executives Jean-Jacques Bienaimé Chief Executive Ofﬁ cer Jeffrey H. Cooper Senior Vice President, Chief Financial Ofﬁ cer Emil D. Kakkis, M.D., Ph.D. Senior Vice President, Chief Medical Ofﬁ cer Steven Jungles Vice President, Supply Chain Daniel P. Maher Vice President, Product Development Charles A. O’Neill, Ph.D. Vice President, Pharmacological Sciences Stephen Aselage Senior Vice President, Global Commercial Development R. Andrew Ramelmeier, Ph.D. Vice President, Manufacturing and Process Development Robert A. Bafﬁ , Ph.D. Senior Vice President, Technical Operations Stuart J. Swiedler, M.D., Ph.D. Senior Vice President, Clinical Affairs G. Eric Davis Vice President, General Counsel & Secretary Mark Wood Vice President, Human Resources Jeff Ajer Vice President, Sales & Marketing Operations Luisa Bigornia Vice President, Intellectual Property Lewis Chapman Vice President, Global Marketing Steve Glass Vice President, General Manager, European Operations Victoria Sluzky, Ph.D. Vice President, Quality and Analytical Chemistry Gordon Vehar, Ph.D. Vice President, Research Amy Waterhouse Vice President, Regulatory & Government Affairs Board of Directors Jean-Jacques Bienaimé Chief Executive Ofﬁ cer Michael Grey President & Chief Executive Ofﬁ cer, SGX Pharmaceuticals, Inc. Elaine Heron Chairman & Chief Executive Ofﬁ cer, Labcyte Inc. Joseph Klein, III Managing Director, Gauss Capital Advisors, LLC. Pierre Lapalme Former President & Chief Executive Ofﬁ cer, North America Ethypharm, Inc. V. Bryan Lawlis President & Chief Executive Ofﬁ cer, Itero Biopharmaceuticals, Inc. Alan Lewis President & Chief Executive Ofﬁ cer, Novocell, Inc. Randy Meier Executive Vice President of Operations, President of Global Eye Care & Chief Financial Ofﬁ cer, Advanced Medical Optics, Inc. Corporate Headquarters BioMarin Pharmaceutical Inc. 105 Digital Drive Novato, CA 94949 Tel. 415.506.6700 Fax. 415.382.7889 Email. ir@bmrn.com www.bmrn.com BioMarin Europe Ltd. Axtell House 23-24 Warwick Street London W1B 5NQ UK BioMarin Brasil Farmacêutica Rua James Joule, 92 – conjunto 42 Sao Paulo, Brazil 04576-080 Stock Listing BioMarin Pharmaceutical Inc. is listed on the Nasdaq Global Market under the symbol BMRN. Independent Accountants KPMG LLP San Francisco, CA Transfer Agent Bank of New York Mellon 480 Washington Boulevard Jersey City, NJ 07310 U.S. Tel. 800.522.6645 International Tel. 201.680.6578 Forward-Looking Statement: This Annual Report contains ‘forward-looking statements’ as deﬁ ned under securities laws. These statements can generally be identiﬁ ed by the use of terminology such as ‘believes’, ‘expects’, ‘anticipates’, ‘plans’, ‘intends’, ‘may’, ‘will’, ‘projects’, ‘continues’, ‘estimates’, ‘potential’, ‘opportunity’, and so on. The company’s actual results or experience may differ signiﬁ cantly from the forward-looking statement. Factors that could cause or contribute to these differences include the results of current clinical trials, the company’s ability to obtain regulatory approval for product candidates, its ability to successfully market products and other factors discussed in the enclosed Form 10-K and the section entitled ‘Risk Factors’ therein. One should not place undue inﬂ uence on these forward-looking statements that speak only as of the date that they were made. These cautionary statements should be considered in connection with any written or oral forward-looking statements that the company may issue in the future. BioMarin Pharmaceutical Inc. does not undertake any obligation to release publicly any revisions to these forward- looking statements after completion of the distribution of this Annual Report to reﬂ ect later events or circumstances or to reﬂ ect the occurrence of unanticipated events. Aldurazyme® is a registered trademark of BioMarin/Genzyme LLC. Naglazyme® and BioMarin are registered trademarks of BioMarin Pharmaceutical Inc. KUVAN™ is a trademark of BioMarin Pharmaceutical Inc. BIOMARIN PHARMACEUTICAL INC. 105 Digital Drive, Novato, CA 94949 Tel: 415-506-6700 Fax: 415-382-7889 E-mail: ir@bmrn.com www.bmrn.com

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