BioMarin Pharmaceutical Inc. (NASDAQ: BMRN)
BioMarin Pharmaceutical was off to a relatively rough start to the day today. In fact, in early morning hours, the stock was trading in the red. Nonetheless, we recently noticed a nice spike in the price of the stock. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching for with regard to BMRN ahead.
What We’re Seeing From BMRN
As mentioned above, BioMarin Pharmaceutical was off to a relatively rough start in the market today. In fact, in early trading hours, the stock was trading in the red. Nonetheless, we noticed a spike minutes ago, bringing the stock well into the green. Currently (10:52), BMRN is trading at $81.23 per share after a gain of $0.71 per share (0.88%) thus far today.
Why The Gains Are Happening
As soon as we noticed the spike in value, the CNA Finance team went digging to see if we could find the reason for the spike. It wasn’t very hard to dig up. Early this morning, BMRN announced a price increase that seems to be a very strategic play.
In the BioMarin announcement, we learned that Vimizim, Naglazyme, and Kuvan would be experiencing a small price hike. These drugs will see increases in price in the amounts of 2%, 2.3%, and 1.7% respectively. This was a very strategic play, as the hikes aren’t high enough to lead to price gouging claims, but large enough to lead to stronger revenue.
What We’ll Be Watching Ahead
Moving forward, we’ll be watching for a reaction in the market and the media to price hikes. Of course, negative coverage could lead to BMRN declines, even though the price hike was relatively small. Nonetheless, things are going well now, and the reaction to the news seems to be positive!
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