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

Read the full 1941 word article

How to gain access

Continue reading with a
two-week free trial.