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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 25, 2002
BioMarin Pharmaceutical Inc.
(Exact name of registrant as specified in its charter)
Delaware 000-26727 68-0397820
(State or other jurisdiction of (Commission (IRS Employer
incorporation or organization) File Number) Identification No.)
371 Bel Marin Keys Boulevard, Suite 210, 94949
Novato, California (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 884-6700
Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On February 25, 2002, BioMarin Pharmaceutical Inc. (the
"Registrant") announced financial results for its fourth quarter and the full
year ended December 31, 2001. The Registrant's press release issued on February
25, 2002 is attached hereto as Exhibit 99.1.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
Not Applicable.
(b) Pro Forma Financial Information.
Not Applicable.
(c) Exhibits.
Exhibit 99.1 Press Release of the Registrant dated
February 25, 2002
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BioMarin Pharmaceutical Inc.,
a Delaware corporation
Date: February 25, 2002 By: _/s/ Fredric D. Price_____________________
Fredric D. Price
Chairman and Chief Executive Officer
EXHIBIT INDEX
Exhibit No. Description
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Exhibit 99.1 Press Release of the Registrant dated February 25, 2002
Exhibit 99.1
BioMarin Announces Fourth Quarter and Year-end 2001 Financial Results
NOVATO, Calif., Feb 25, 2002 /PRNewswire-FirstCall via COMTEX/ -- BioMarin
Pharmaceutical Inc. (Nasdaq and Swiss SWX New Market: BMRN) today announced
financial results for its fourth quarter and the full year ended December 31,
2001.
Fourth Quarter 2001 Financial Results
Revenues for the fourth quarter of 2001 were $3.6 million compared to $3.1
million in the fourth quarter of 2000. Fourth quarter 2001 revenues included
$2.7 million for services provided to the Company's joint venture with Genzyme
compared to $2.5 million in the fourth quarter of 2000. The net loss was $34.9
million ($0.77 per share, both basic and diluted) in the fourth quarter of 2001
compared to $10.4 million ($0.28 per share, both basic and diluted) for the
fourth quarter of 2000.
The net loss in the fourth quarter of 2001 included three non-routine charges
that total approximately $19.8 million as follows:
(1) Approximately $11.6 million as an in-process research and development
expense to account for the costs related to the October 2001 acquisition of the
pharmaceutical assets of IBEX Technologies Inc. This amount includes the
purchase price as well as expenses associated with the transaction.
(2) Approximately $7.8 million to write down goodwill and other intangible
assets associated with Glyko, Inc., the Company's diagnostics business. Glyko,
Inc.'s catalog business is being discontinued, and certain operating assets may
be offered for sale.
(3) Approximately $0.4 million in expenses related to the recently announced
planned acquisition of Glyko Biomedical Ltd. (a separate entity and unrelated to
Glyko, Inc.). Additional expenses related to the planned acquisition of Glyko
Biomedical Ltd. will be recorded in 2002 as they are incurred.
Year-end 2001 Financial Results
For the year, revenues were $14.4 million compared to $12.3 million in 2000.
Year 2001 revenues included $11.3 million for services provided to the Company's
joint venture with Genzyme, compared to $9.7 million in 2000. The net loss in
2001 was $67.6 million ($1.65 per share, both basic and diluted) compared to
$37.4 million ($1.04 per share, both basic and diluted) in 2000 and includes the
three one-time charges noted above.
Recent Achievements
Fredric D. Price, BioMarin's Chairman and Chief Executive Officer, commented,
"During the last year, we made substantial progress in three clinical
development programs, completed a commercial manufacturing facility, completed a
clinical manufacturing facility, acquired two new product candidates, signed
definitive agreements for two additional acquisitions, and strengthened the
financial position of the Company.
"I am pleased to highlight the following recent achievements from the fourth
quarter of 2001 and early 2002:"
o In an effort to solidify BioMarin's share structure, earlier
this month we entered into an agreement to acquire all of the
outstanding shares of Glyko Biomedical Ltd., whose principal asset is
the ownership of approximately 11.4 million shares of BioMarin. As a
result of this transaction, Glyko Biomedical Ltd.'s shareholders will
become direct stockholders of BioMarin, and the total number of
BioMarin common shares outstanding will remain the same.
o In January 2002, we entered into a definitive agreement to
acquire Synapse Technologies Inc., a privately held biopharmaceutical
company based in Vancouver, British Columbia. BioMarin intends to use
Synapse's proprietary p97 technology to treat disorders of the brain by
delivering lysosomal enzymes and other therapeutics across the blood-
brain barrier by means of traditional intravenous injections. We expect
this deal to close by the end of the first quarter.
o In December 2001, we completed a $96.6 million public offering
of common stock. In total, BioMarin raised approximately $156 million
of equity financing in 2001 through a public offering, a private
placement, and an equity line. We ended 2001 with approximately $131
million in cash, cash equivalents, and short-term investments.
o In November 2001, we announced positive results from the Phase
3 trial of Aldurazyme (TM), an investigational enzyme replacement
therapy for the treatment of MPS I. Aldurazyme is being developed in
partnership with Genzyme.
o In October 2001, we acquired the Neutralase (TM) and Phenylase
product programs from IBEX Technologies, Inc. Neutralase is an
injectable heparinase that is targeted to reverse heparin and other new
heparin- like anticoagulants during open heart and other surgeries.
Phenylase is an early development stage, orally active enzyme with the
potential to treat Phenylketonuria (PKU), a genetic disease caused by
an enzyme deficiency.
BioMarin specializes in the development and commercialization of therapeutic
enzyme products to treat serious, life-threatening diseases and other
conditions.
This press release contains forward-looking statements about the business
prospects of BioMarin Pharmaceutical Inc., including the following potential
future products: Aldurazyme for the treatment of MPS I, Neutralase for the
reversal of anticoagulants, and Phenylase for the treatment of PKU. These
forward-looking statements are predictions and involve risks and uncertainties
such that actual results may differ materially from these statements. Results
may differ materially depending on the progress of BioMarin's product programs,
the actual results of the current and planned clinical trials, actions of
regulatory authorities, the closing of planned acquisitions, availability of
capital, future actions in the pharmaceutical market and developments by
competitors, and those factors detailed in BioMarin's filings with the
Securities and Exchange Commission such as 10Q, 10K and 8K reports. Stockholders
are urged not to place undue reliance on forward-looking statements, which speak
only as of the date hereof. BioMarin is under no obligation, and expressly
disclaims any obligation, to update or alter any forward-looking statement,
whether as a result of new information, future events or otherwise.
Aldurazyme is a trademark of BioMarin/Genzyme LLC. All rights reserved.
Contacts
Jeremy T. Price
Manager, Investor Relations
BioMarin Pharmaceutical Inc.
(415) 884-6777
jprice@biomarinpharm.com
Sharon Karlsberg
Vice President
Feinstein Kean Healthcare
(617) 577-8110
skarlsberg@fkhealth.com
BioMarin Pharmaceutical Inc.
Consolidated Balance Sheets
($ Thousands, Unaudited)
December 31, 2001 December 31, 2000
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Assets
Current assets:
Cash and cash equivalents $ 12,528 $ 16,530
Short-term investments 118,569 23,671
Accounts receivable, net 343 451
Due from BioMarin/Genzyme LLC 744 1,799
Inventories 325 436
Interest receivable 759 684
Prepaid expenses 1,163 970
Total current assets 134,431 44,541
Property, plant and equipment, net 32,560 20,715
Goodwill and other intangibles, net - 9,862
Investment in BioMarin/Genzyme LLC 3,497 1,482
Note receivable from officer 889 -
Deposits 434 333
Total assets $ 171,811 $ 76,933
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,375 $ 4,747
Accrued liabilities 2,336 2,109
Current portion of capital lease obligations 66 -
Notes payable - short-term 1,525 27
Total current liabilities 8,302 6,883
Long-term portion of notes payable 3,864 56
Long-term portion of capital lease obligations 97 -
Total liabilities 12,263 6,939
Stockholders' equity:
Common stock 52 37
Additional paid in capital 305,230 153,940
Common stock warrants 5,134 -
Deferred compensation (699) (1,530)
Notes from stockholders (2,037) (1,940)
Foreign currency translation (13) -
Deficit accumulated during development stage (148,119) (80,513)
Total stockholders' equity 159,548 69,994
Total liabilities and stockholders' equity $ 171,811 $ 76,933
Note: These financial statements do not include any adjustments that may be
required to reflect the accounts of Glyko, Inc. as a discontinued operation. At
the time of this press release, the Company is researching whether such
presentation is appropriate.
BioMarin Pharmaceutical Inc. and Subsidiaries
Consolidated Statements of Operations
($ Thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Revenues:
Revenues - products $ 622 $ 596 $ 2,382 $ 2,348
Revenues - services 88 73 333 247
Revenues from 2,709 2,469 11,330 9,731
BioMarin/Genzyme LLC
Revenues - other 187 - 369 -
Total revenues 3,606 3,138 14,414 12,326
Operating Costs and Expenses:
Cost of products and services 544 180 1,404 719
Research and development 13,233 10,685 45,389 35,794
Selling, general and administrative 3,149 2,297 10,340 8,814
In-process research and development 11,647 - 11,647 -
Closure of Glyko, Inc. 7,761 - 7,761 -
Carson Street closure - - - 4,423
Total operating costs and expenses 36,334 13,162 76,541 49,750
Loss from operations (32,728) (10,024) (62,127) (37,424)
Interest income 437 698 1,871 2,979
Interest expense (6) (1) (17) (7)
Loss from BioMarin/Genzyme LLC (2,625) (1,067) (7,333) (2,912)
Net loss $(34,922) $(10,394) $(67,606) $(37,364)
Net loss per share, basic and diluted $(0.77) $(0.28) $(1.65) $(1.04)
Weighted average common shares outstanding, 45,515 36,888 41,083 35,859
basic and diluted
Note: These financial statements do not include any adjustments that may be
required to reflect the accounts of Glyko, Inc. as a discontinued operation. At
the time of this press release, the Company is researching whether such
presentation is appropriate.
SOURCE BioMarin Pharmaceutical Inc.
CONTACT:
Jeremy T. Price, Manager, Investor Relations of BioMarin Pharmaceutical Inc.,
+1-415-884-6777, jprice@biomarinpharm.com; or Sharon Karlsberg, Vice President
of Feinstein Kean Healthcare, +1-617-577-8110, skarlsberg@fkhealth.com (BMRN)
http://www.prnewswire.com Copyright (C) 2002 PR Newswire. All rights reserved.