BioMarin Pharmaceutical said Friday it would spend $270 million to acquire small biotech company Inozyme Pharma, sending shares of the latter skyrocketing by triple digits.
Shares of Inozyme, a dollar stock, catapulted 178.2% to 3.95. That puts shares within striking distance of the takeover price at $4 per share. BioMarin stock rose 1.7%, ending the regular session at 59.27.
"We have been patient for some business development at BioMarin and we are pleased to see the Inozyme Pharma deal disclosed this morning," Leerink Partners analyst Joseph Schwartz said in a note to clients. He said Inozyme "fits like a glove" for BioMarin's enzyme replacement therapy business.
Inozyme is currently working on an enzyme replacement therapy for children whose bodies don't make enough of the ENPP1 protein. The genetic condition affects the blood vessels, soft tissues and bones, and is associated with increased cardiovascular mortality risk.
BioMarin Bolsters Its ERT Business
Both boards have already approved the deal, which is expected to close in the third quarter.
BioMarin says the acquisition will strengthen its enzyme replacement therapy, or ERT, unit. Inozyme's drug, INZ-701, is currently in Phase 3 testing with pivotal results expected in early 2026. That puts the drug on the approval pathway for 2027.
Schwartz noted there are no approved treatments for ENPP1 deficiency, which is linked to severe rickets and bone weakness. Inozyme has been working to identify patients through disease education, newborn screening and sponsored testing. There have been 1,500 patients identified globally.
"Despite a relatively limited patient population, ENPP1 could grow into a valuable opportunity, especially with rare ERT pricing, combined with BMRN's expertise in the space, which could drive patient identification higher," he said.
BioMarin reaffirmed its previous guidance for $3.1 billion to $3.2 billion in sales and adjusted earnings of $4.20 to $4.40 per share.
Schwartz kept his outperform rating on shares.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
