BioMarin said it’s wrapped up a pipeline review and will stop investing in four experimental therapies because they don’t meet its threshold for patient impact and commercial opportunity.
Two of the discontinued programs, BMN 355 for long-QT syndrome and BMN 365 for PKP2 arrhythmogenic cardiomyopathy, hadn’t yet been tested in humans. The other two, BMN 331 for hereditary angioedema and BMN 255 for a certain kind of liver disease, were in early stages of clinical testing, according to a BioMarin presentation for investors in September.
BioMarin said its full pipeline will be subject to “ongoing assessment.”
At the same time the investment community considers Roctavian as a commercial flop.
All this indicates restructuring that will negatively affect large number of employees, as well as long term investment community. Prospects for being acquired could also diminish.
Our vascular division seems to deal with the same challenges every few year, without resolution. Each time we hire a new set of incompetent mid-level managers to espouse their unique solution. By unique, I mean same old shit they think they’ve created.
After a long time at this company, we’ve reverted back to the bottom of the cess pool for management talent accompanied by what’s already been in the cess pool.
Is Biomarin a candidate for takeover?
The attractiveness of a company as an acquisition candidate depends on various factors beyond just its financial metrics. To provide a rough estimate, let's assume a P/E ratio of 65 and a market capitalization is ﹩17 billion.
To calculate the annual net profit that would make the company attractive, we can use the formula:
Market Capitalization = P/E Ratio * Net Profit
Rearranging the formula, we get:
Net Profit = Market Capitalization / P/E Ratio
Using the given values:
Net Profit = ﹩17 billion / 65
Net Profit ≈ ﹩261.54 million
To make the company an attractive candidate for takeover with a market capitalization of ﹩17 billion, a P/E ratio of 65, and sales of ﹩2 billion per year, it would need to generate an annual net profit of approximately ﹩261.54 million.
How could it get there in 2024?
Expect layoffs.
The earlier entry describes the current chaotic and dangerous environment people have to cope with. Some of this have been present in company operations before, but the recent CEO departure and change at the top exacerbated all the ills and added many new ones. Top management tries outdo each other in throwing others under the bus. This behavior has however migrated to lower levels making life difficult for everyone. From bad to worse.
This is the earlier entry:
"It's been miserable here for the last 3 years. Anyone that does actual work has been slowly laid off. Management and the majority left are more focused on power points to upper management because their worried about their jobs, while those that do actual work are left struggling with less headcount to get double the work done. Everyone is just waiting till the ax falls. Which instills a culture of fear, so nothing is being advanced. Your point person is there one day and silently gone the next, without any communication by management on who is now taking over their responsibilities. So weeks are lost, as people scramble to find someone to do the work. "Big picture" projects that would give the company long term flexibility are shot down. Management does not have your back, because they are worried about their jobs as well. I have never worked in a place with such blame culture in my entire career. It's never "let's fix this" it's "who's fault is this". There's no cross functional communication . No one knows what other depts are doing. Some depts are running the same projects unbeknownst to each other. Upper management are in fighting and busy throwing each other under the bus, which makes working almost impossible, since you spend the majority of your day in conflict and strife "
It's been miserable here for the last 3 years. Anyone that does actual work has been slowly laid off. Management and the majority left are more focused on power points to upper management because their worried about their jobs, while those that do actual work are left struggling with less headcount to get double the work done. Everyone is just waiting till the ax falls. Which instills a culture of fear, so nothing is being advanced. Your point person is there one day and silently gone the next, without any communication by management on who is now taking over their responsibilities. So weeks are lost, as people scramble to find someone to do the work. "Big picture" projects that would give the company long term flexibility are shot down. Management does not have your back, because they are worried about their jobs as well. I have never worked in a place with such blame culture in my entire career. It's never "let's fix this" it's "who's fault is this". There's no cross functional communication . No one knows what other depts are doing. Some depts are running the same projects unbeknownst to each other. Upper management are in fighting and busy throwing each other under the bus, which makes working almost impossible, since you spend the majority of your day in conflict and strife .
We all wonder how the new CEO would shape the company. Would he sweep out the incompetent, or internally networked? Who would be the replacements? Roche and Genentech people with experience mismatch? Some candidates may be attracted by location coming from some dull, backwater places. However, internal management changes are needed.
Very good candidates cannot be attracted considering future product portfolio prospects. Therefore, a new team may be as inefficient as the old one. All under the excuse of working on ultrarare diseases. Really rare, like the 3 hemophilia patients so far. The Gates Foundation is more appropriate to work on such scale projects.
