BioMarin Q2 2026 Earnings: Revenue Rises 20% as Acquisition Costs Weigh on Profit

BioMarin Pharmaceutical (NASDAQ: BMRN) reported Q2 2026 revenue of $990 million, up 20% year over year, while GAAP diluted EPS fell 81% to $0.23 from $1.23. Non-GAAP diluted EPS declined 17% to $1.20 as growth from acquired Amicus products, VOXZOGO, and PALYNZIQ was offset at the earnings level by acquisition costs, financing expenses, and higher commercial and R&D spending.

Core financial results

Revenue increased by $165 million, primarily reflecting the addition of GALAFOLD and POMBILITI + OPFOLDA following the April 27 Amicus acquisition, as well as new VOXZOGO patients and growth in U.S. PALYNZIQ use. Lower VIMIZIM and ALDURAZYME revenue partly offset those gains.

Profitability moved in the opposite direction. GAAP net income fell 81%, while non-GAAP income declined 16%, showing that the pressure extended beyond acquisition accounting adjustments to higher interest expense and operating investment.

Product and portfolio performance

Metabolic Conditions revenue rose 25% to $695 million, largely because GALAFOLD and POMBILITI + OPFOLDA contributed from April 27 onward and PALYNZIQ continued to expand. VOXZOGO revenue increased 14% to $253 million, with the number of children receiving treatment globally rising by more than 20%.

The U.S. generated approximately 25% of VOXZOGO revenue, and most new U.S. patient starts were children younger than two. Because the Amicus products were not part of BioMarin in the prior-year quarter, their year-over-year growth rates are not meaningful.

BioMarin attributed the VIMIZIM decline to the timing of large government orders outside the U.S. ALDURAZYME decreased because of the timing of order fulfillment to Sanofi, rather than a disclosed change in underlying demand.

Amicus expanded revenue but widened the GAAP and non-GAAP profit gap

The Amicus acquisition immediately broadened BioMarin’s commercial portfolio, but it also materially increased reported expenses. Total operating expenses rose to $879 million from $549 million, including SG&A of $396 million versus $232 million, R&D of $207 million versus $161 million, and intangible asset amortization of $73 million versus $5 million.

Interest expense increased to $63.3 million from $2.7 million because BioMarin used debt to finance part of the transaction. The GAAP-to-non-GAAP reconciliation also excluded $84 million of acquisition-related costs, $73 million of intangible amortization, $12 million of acquired inventory step-up amortization, $76 million of stock-based compensation, and $3 million of severance costs, partly offset by a $57 million tax effect.

Even after those adjustments, non-GAAP income and EPS declined. BioMarin cited higher interest expense, additional sales and marketing investment for the acquired products and VOXZOGO’s global expansion, and increased R&D spending related to BMN 401.

Management has identified approximately $280 million of GAAP cost reductions and $220 million of non-GAAP cost reductions from the Amicus combination, expected to be fully realized in 2028. Most reductions are expected to come from legacy labor costs, external spending, and general and administrative functions, while most sales and marketing capabilities will be retained.

Cash flow and balance sheet

BioMarin reported cash flow only on a six-month basis. Operating cash flow for the first half of 2026 increased to $388.8 million from $359.7 million even as six-month GAAP net income fell to $150.3 million from $426.2 million. Higher depreciation and amortization and stock-based compensation were among the non-cash items supporting the cash-flow reconciliation.

The acquisition had a much larger effect on investing and financing cash flows. BioMarin recorded a $5.07 billion net cash outflow for the Amicus purchase and $3.65 billion of borrowing proceeds. Cash and cash equivalents declined to $874 million at June 30 from $1.31 billion at the end of 2025, while total current and long-term debt increased to approximately $4.19 billion from $597 million.

BioMarin is targeting gross leverage below 2.5 times by mid-2027, approximately one year earlier than the timeline given when the transaction was announced. Reaching that target depends on the combined company’s planned profitability growth and integration execution.

Pipeline and regulatory developments

VOXZOGO’s potential expansion into hypochondroplasia is the most immediate pipeline catalyst disclosed with the quarter. BioMarin submitted a supplemental New Drug Application after its Phase 3 study showed a 2.33 centimeter-per-year improvement in annualized growth velocity versus placebo at week 52, with a p-value below 0.0001. The company plans to update investors on the application’s status with its third-quarter results, and a launch could occur in 2027 if the treatment is approved.

The FDA also accepted BioMarin’s supplemental application for full approval of VOXZOGO in children with achondroplasia, setting a February 28, 2027 target action date. Separately, the European Commission approved PALYNZIQ for adolescents aged 12 and older with phenylketonuria.

Not all pipeline developments were positive. BioMarin discontinued BMN 401 across all indications after the ENERGY 3 trial in ENPP1 deficiency failed to meet one of its two co-primary endpoints. The company had cited BMN 401 as one reason for higher Q2 R&D spending.

Updated 2026 guidance

BioMarin raised the lower end of its total revenue range, increased both ends of its VOXZOGO forecast, and lifted non-GAAP diluted EPS guidance. Metabolic Conditions and Other Revenues guidance remained unchanged.

The guidance includes Amicus contributions beginning April 27. Non-GAAP EPS guidance assumes approximately 200 million diluted shares and a 22% combined tax rate. BioMarin also estimates that interest expense associated with the acquisition financing will be approximately $200 million on an annualized basis at current rates.

Recent insider transactions

The supplied six-month insider data lists 261,745 shares purchased across 24 transactions and 52,154 shares sold across four transactions, resulting in net purchases of 209,591 shares. The most recent quantified individual transaction provided was an officer sale in May; no conclusion about company prospects can be drawn from that transaction alone.

The data also lists stock awards for nine directors on June 2, 2026, with a stated value of $0, but it does not provide the number of shares granted.

Risks investors should monitor

• Integration and synergy execution: BioMarin’s margin expansion plans depend on realizing $280 million of GAAP and $220 million of non-GAAP cost reductions by 2028 without disrupting growth at GALAFOLD and POMBILITI + OPFOLDA.
• Higher debt and interest expense: Total debt increased substantially after the acquisition, and annualized financing interest is estimated at approximately $200 million. This creates a continuing drag on earnings and raises the importance of the mid-2027 leverage target.
• Order timing volatility: VIMIZIM and ALDURAZYME revenue declined because of government and partner order timing. Similar timing differences could continue to create quarterly variability.
• Regulatory and pipeline execution: VOXZOGO’s additional indications require regulatory approval, while the discontinuation of BMN 401 illustrates the financial and development risk associated with BioMarin’s pipeline.
• Reported profitability: Acquisition costs, intangible amortization, inventory step-up charges, and higher operating investment caused GAAP profitability to fall much faster than revenue grew. The duration and scale of these costs will affect how quickly reported margins recover.

Summary

BioMarin’s Q2 2026 revenue growth reflected both the newly acquired Amicus products and continued expansion of VOXZOGO and PALYNZIQ. The central issue was profitability: acquisition charges, debt financing, and higher commercial and R&D spending drove a sharp decline in GAAP earnings and a smaller but still meaningful decline in non-GAAP results. The next points to watch are Amicus integration progress, leverage reduction, VOXZOGO’s regulatory milestones, and whether higher revenue translates into margin recovery.