BioMarin wants control
BioMarin, sanofi in talks to determine future of rights to Aldurazyme
BioMarin Pharmaceutical Inc. hopes to use the acquisition of partner Genzyme Corp. (NASDAQ:GENZ) by sanofi-aventis Group (Euronext:SAN; NYSE:SNY) as the occasion to reacquire full rights to Aldurazyme laronidase, which would be its second-largest revenue generator.
The treatment for mucopolysaccharidosis I (MPS-I) was developed under a 1998 JV with Genzyme. Under a 2008 amendment, Genzyme records Aldurazyme sales, paying BioMarin a tiered royalty of 39.5-50%. Genzyme markets Aldurazyme in the U.S., Japan and the EU, while Bio-Marin manufactures it.
Genzyme reported 2010 revenue of $166.8 million for Aldurazyme. BioMarin recorded $71.2 million in net product revenue.
In 2010, Aldurazyme was BioMarin's third-largest product, representing 19% of revenue, behind the $192.7 million from Naglazyme galsulfase to treat MPS-VI and the $99.4 million from Kuvan sapropterin for phenylketonuria (PKU).
If BioMarin had received all the Aldurazyme sales, the drug would have accounted for 35% of revenue and been the company's second-biggest product. That would have boosted total revenue to $471.9 million, although the biotech would owe royalties on the drug if a reacquisition deal is done.
On BioMarin's quarterly call last week, CEO Jean-Jacques Bienaime said the company had started negotiations with sanofi. He noted that under the partnership, BioMarin must make