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BioMarin Pharmaceutical

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FY2007 Annual Report · BioMarin Pharmaceutical
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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