BioMarin Pharmaceutical Inc. (BMRN): A Bull Case Theory

We came across a bullish thesis on BioMarin Pharmaceutical Inc. on Value investing subreddit by BearWithMeGM. In this article, we will summarize the bulls’ thesis on BMRN. BioMarin Pharmaceutical Inc.'s share was trading at $53.89 as of December 2nd. BMRN’s trailing and forward P/E were 20.45 and 11.19 respectively according to Yahoo Finance.

BioMarin Pharmaceutical Inc., a biotechnology company, engages in the development and commercialization of therapies for life-threatening rare diseases and medical conditions in the United States, Europe, Latin America, the Middle East, the Asia Pacific, and internationally. BMRN appears materially undervalued despite strong operational performance, with 99.6% of its shares held by institutions, limiting retail attention.

The company has consistently outperformed analyst expectations over the past six quarters, yet its stock is down approximately 17% year-to-date and trading near 52-week lows. In Q2 2025, BioMarin reported +124% year-over-year EPS growth, reflecting the successful execution of its 2024 restructuring, which expanded margins significantly.

Management has indicated that the full benefits of the restructuring will become evident in 2026, and they have concurrently upgraded guidance for revenue, income, and operating margins. The company’s portfolio of orphan drugs faces limited competition, with two additional clinical trials concluding in 2026 that are expected to achieve approval based on strong preliminary results. Despite these fundamentals, BioMarin trades at a forward P/E of just 11 and a PEG ratio of 0.63, suggesting meaningful mispricing by the market.

A commonly cited headwind is the anticipated approval of a competitor’s drug to one of BioMarin’s leading therapies; however, analysis indicates that the impact may be less significant than feared given the company’s entrenched market position and clinical differentiation. The combination of near-term earnings growth, margin expansion, and multiple high-confidence upcoming approvals presents a compelling risk/reward profile.

Even modest upside from positive Q3 earnings and guidance confirmation could catalyze a rerating. For investors, the stock offers an attractive entry point with potential for significant appreciation while maintaining downside protection due to strong cash flow generation and robust orphan drug franchises.

Previously we covered a bullish thesis on Bio-Techne Corporation (TECH) by scuttleblurb in May 2025, highlighting its diverse portfolio, expansion into cell and gene therapy, and recovering organic growth. The company's stock price has appreciated approximately by 33.02% since our coverage. This is because the thesis played out. BearWithMeGM shares a similar but emphasizes BioMarin’s margin expansion, orphan drug portfolio, and undervaluation.

BioMarin Pharmaceutical Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held BMRN at the end of the second quarter which was 59 in the previous quarter. While we acknowledge the potential of BMRN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.