Get Ready for a Potential Double in This Biopharmaceutical Stock in the Next 6 to 12 Months
Obtaining U.S. Food and Drug Administration approval for a drug, even after multiple trials in various phases, is not the easiest thing for a pharma company to do. BioMarin (NASDAQ: BMRN) knows this as well as any company that has been rejected for approval in the past. And so do its investors, who have witnessed two share-price spikes five years apart as excitement built around drug trials; in both cases, the stock receded to less heady levels after the trials were unsuccessful.
From May 2014 through July 2015, growing excitement around a potential treatment for muscular dystrophy drove the stock up by more than 150%, but it gave up almost all of those gains during the following six months as part of a sell-off across the sector, the result of news that the FDA was reviewing a strong competitor for treatment of MD. The FDA ultimately rejected BioMarin's treatment.
Between October 2019 and July 2020, the stock experienced another climb of 86% , but it again gave up nearly all of those gains over the course of the next 12 months. This second spike was on the back of three consecutive quarters of strong revenue growth and positive GAAP income, followed by a string of positive news releases, including positive final results of phase 3 trials for a treatment of children with achondroplasia (a genetic condition that results in disproportionately short arms and legs) and an FDA-accepted priority review application for a gene therapy treatment for hemophilia A.
Source Fool.com
