BioMarin Announces Fourth Quarter and Full Year 2006 Financial Results

NOVATO, Calif., Feb. 20 /PRNewswire-FirstCall/ -- BioMarin Pharmaceutical Inc. (Nasdaq and SWX: BMRN) today announced financial results for its fourth quarter and year ended December 31, 2006. The net loss was $10.4 million ($0.11 per share) for the fourth quarter of 2006, compared to a net loss of $15.0 million ($0.20 per share) for the fourth quarter of 2005. The net loss for the year ended December 31, 2006 was $28.5 million ($0.34 per share), compared to a net loss of $74.3 million ($1.08 per share) for the year ended December 31, 2005, representing a reduction of $45.8 million, or approximately 61.6 percent.

As of December 31, 2006, BioMarin had cash, cash equivalents, and short-term investments totaling $288.8 million.

Jean-Jacques Bienaime, Chief Executive Officer of BioMarin commented, "In 2006, we continued to improve our financial profile by increasing product revenue, reducing the net loss, and strengthening the balance sheet. We also advanced our product pipeline by completing the Phenoptin Phase 3 clinical trials with very positive results and making significant progress in the pre-clinical development of Phenylase for PKU. Looking ahead in 2007, we expect continuing growth of Naglazyme and Aldurazyme sales to substantially offset research and development spending for ongoing clinical programs. In addition, we are hopeful that Phenoptin will be approved by the FDA as the first treatment option for PKU patients by the end of the year."

Product Sales

Net sales of Naglazyme(R) (galsulfase), an enzyme replacement therapy for mucopolysaccharidosis VI (MPS VI), were $16.3 million for the fourth quarter of 2006, compared to $12.9 million for the third quarter of 2006, representing a sequential increase of approximately 26.4 percent. Naglazyme net sales were $46.5 million for the year ended December 31, 2006. Naglazyme was approved by the U.S. Food and Drug Administration (FDA) in late May 2005, and by the European Commission in late January 2006. Naglazyme net sales for the three months and year ended December 31, 2005 were $3.7 million and $6.1 million, respectively. BioMarin is commercializing Naglazyme in the United States, Europe, and Latin America, and through distributors in other international markets.

Net sales of Aldurazyme(R) (laronidase), an enzyme replacement therapy for mucopolysaccharidosis I, (MPS I) by BioMarin/Genzyme LLC increased by approximately 25.0 percent to $26.5 million for the fourth quarter of 2006, compared to $21.2 million in the fourth quarter of 2005. Net sales for the year ended December 31, 2006 increased by approximately 26.0 percent to $96.3 million, compared to $76.4 million for the year ended December 31, 2005. BioMarin's share of the profit of BioMarin/Genzyme LLC was $5.7 million for the fourth quarter of 2006, compared to a profit of $3.1 million for the fourth quarter of 2005. BioMarin's share of the profit from BioMarin/Genzyme LLC for the year ended December 31, 2006 was $19.3 million, compared to $11.8 million for the year ended December 31, 2005.

Royalty and License Revenues

Royalty and license revenues for the fourth quarter and full year 2006 were $0.8 million and $15.9 million, respectively, and include royalties on net product sales of the Orapred product line, including Orapred(R) (prednisolone sodium phosphate oral solution) and Orapred ODT(TM) (prednisolone sodium phosphate orally disintegrating tablets). BioMarin expects to receive an additional milestone payment of $4.0 million on the first anniversary of FDA approval of Orapred ODT in June 2007.

  Financial Guidance

  2007 Projected Net Product Sales

BioMarin estimates 2007 net sales of Naglazyme to be in the range of $74 million to $78 million and sales of Aldurazyme by the joint venture for 2007 to be in a range of $115 million to $125 million.

2007 Projected Net Loss

BioMarin estimates its GAAP net loss for the fiscal year ending December 31, 2007 to be in the range of $20 million to $25 million, which includes approximately $16 million to $18 million in non-cash stock compensation expense.

  Recent Events and Fourth Quarter 2006 Highlights

  --  On January 29, BioMarin announced that the remaining $51.4 million of
      convertible notes due 2008 was converted into common stock.
  --  On January 16, BioMarin announced positive results from the Phase 3
      diet study of Phenoptin for PKU.
  --  On January 4, BioMarin announced the initiation of the Phase 2
      clinical study of 6R-BH4 in peripheral arterial disease.
  --  On December 18, BioMarin announced positive results from the Phase 3
      extension study of Phenoptin for PKU.

BioMarin will host a conference call and webcast to discuss fourth quarter and full year 2006 financial results today, Tuesday, February 20, at 11:00 a.m. ET (17:00 CET). This event can be accessed on the investor section of the BioMarin website at http://www.bmrn.com/.

  Date: February 20, 2007
  Time: 11:00 a.m. ET (17:00 CET)
  U.S. & Canada Toll-free Dial in #: 800.901.5217
  International Dial in #: 617.786.2964
  Participant Code:  35915200
  Replay Toll-free Dial in #: 888.286.8010
  Replay International Dial in #: 617.801.6888
  Replay Code: 94899251

  About BioMarin

BioMarin develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. The company's product portfolio is comprised of two approved products and multiple clinical and preclinical product candidates. Approved products include Naglazyme(R) (galsulfase) for mucopolysaccharidosis VI (MPS VI), a product wholly developed and commercialized by BioMarin, and Aldurazyme(R) (laronidase) for mucopolysaccharidosis I (MPS I), a product which BioMarin developed through a 50/50 joint venture with Genzyme Corporation. Investigational product candidates include Phenoptin(TM) (sapropterin dihydrochloride), a Phase 3 product candidate for the treatment of phenylketonuria (PKU), and 6R-BH4 for cardiovascular indications, which is currently in Phase 2 clinical development for the treatment of poorly controlled hypertension and peripheral arterial disease. For additional information, please visit http://www.bmrn.com/. Information on BioMarin's website is not incorporated by reference into this press release.

Forward-Looking Statement

This press release contains forward-looking statements about the business prospects of BioMarin Pharmaceutical Inc., including, without limitation, statements about: the sales expectations of BioMarin's product Naglazyme and BioMarin/Genzyme LLC's product Aldurazyme; Alliant Pharmaceuticals' commercialization of Orapred ODT; the financial performance of the BioMarin as a whole; the timing of BioMarin's clinical trials of Phenoptin and 6R-BH4 for other indications; the continued clinical development and commercialization of Aldurazyme, Naglazyme, Phenoptin, and 6R-BH4 for other indications; actions by regulatory authorities, including actions related to Naglazyme, Phenoptin, and 6R-BH4 for other indications; and expectations regarding actions by Merck Serono related to filing the marketing authorization application for Phenoptin. These forward-looking statements are predictions and involve risks and uncertainties such that actual results may differ materially from these statements. These risks and uncertainties include, among others: our success in continuing commercialization of Naglazyme; our joint venture partner's success in continuing the commercialization of Aldurazyme; Alliant Pharmaceuticals' success in commercializing Orapred ODT; results and timing of current and planned preclinical studies and clinical trials; our ability to successfully manufacture our products and product candidates; the content and timing of decisions by the U.S. Food and Drug Administration, the European Commission and other regulatory authorities concerning each of the described products and product candidates; the market for each of these products and particularly Aldurazyme, Naglazyme and Orapred ODT; actual sales of Aldurazyme, Naglazyme and Orapred ODT; Merck Serono's activities related to Phenoptin; and those factors detailed in BioMarin's filings with the Securities and Exchange Commission, including, without limitation, the factors contained under the caption "Risk Factors" in BioMarin's 2005 Annual Report on Form 10-K, as amended, and the factors contained in BioMarin's reports on Form 8-K. 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.

  Naglazyme(R) is a registered trademark of BioMarin Pharmaceutical Inc.
  Aldurazyme(R) is a registered trademark of BioMarin/Genzyme LLC.

Orapred(R) is a registered trademark of Medicis Pediatrics, Inc. and is used under license.

Net Product Sales of BioMarin Pharmaceutical Inc. and BioMarin/Genzyme LLC
     For the Three Months and Years Ended December 31, 2005 and 2006
                         (In millions, unaudited)

                                        Three Months         Year Ended
                                           Ended            December 31,
                                        December 31,
                                        2005     2006       2005     2006
  Aldurazyme (as reported by
  BioMarin/Genzyme LLC) (1)            $21.2    $26.5      $76.4    $96.3
  Naglazyme                              3.7     16.3        6.1     46.5
  Orapred (2)                            0.4       --        6.9      3.1

(1) The Company recognizes its 50% share of the net income of BioMarin/Genzyme LLC as Equity in the Income of BioMarin/Genzyme LLC in the Company's consolidated statements of operations.

(2) Effective with the sublicense of the Orapred North American rights in March 2006, BioMarin no longer reports net sales of Orapred. Orapred royalty revenue is included in Royalty and License Revenues on the consolidated statements of operations.

              BIOMARIN PHARMACEUTICAL INC. AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF OPERATIONS
     For the Three Months and Years Ended, December 31, 2005 and 2006
           (In thousands, except for per share data, unaudited)

                                Three Months Ended           Year Ended
                                   December 31,             December 31,
                                 2005        2006         2005         2006
  Revenues:
    Net product sales         $ 4,157    $ 16,310     $ 13,039     $ 49,606
    Collaborative agreement
     revenues                   5,317       4,882      12,630        18,740

    Royalty and license
     revenues                      --         827          --       15, 863
      Total revenues            9,474      22,019      25,669        84,209
  Operating expenses:
    Cost of sales (excludes
     amortization of developed
     product technology)        1,327       3,616       2,629         8,740
    Research and development   12,682      20,572      56,391        66,735
    Selling, general and
     administrative            11,076      13,971      41,556        49,030
    Amortization of acquired
     intangible assets            286       1,093       1,144         3,651
      Total operating expenses 25,371      39,252     101,720       128,156
  Equity in the income of
   BioMarin/Genzyme LLC         3,072       5,670      11,838        19,274
  Loss from operations        (12,825)    (11,563)    (64,213)      (24,673)
  Interest income                 685       4,129       1,861        12,866
  Interest expense             (2,856)     (2,957)    (11,918)      (16,726)
    Net loss                $ (14,996)  $ (10,391)  $ (74,270)    $ (28,533)
    Net loss per share,
     basic and diluted      $   (0.20)  $   (0.11)  $   (1.08)    $   (0.34)
  Weighted average common
   shares outstanding,
   basic and diluted           74,048      91,552      68,830        84,582


              BIOMARIN PHARMACEUTICAL INC. AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEETS
                        December 31, 2005 and 2006
           (In thousands, except for share and per share data)

                                                    2005             2006
                           ASSETS
  Current assets:
   Cash and cash equivalents                     $ 38,092         $ 89,162
   Short-term investments                           9,700          199,685
   Accounts receivable, net                         5,860           14,670
   Advances to BioMarin/Genzyme LLC                 1,071            1,596
   Inventory                                       10,898           25,075
   Other current assets                             3,320            4,036
     Total current assets                          68,941          334,224
  Cash balances related to long-term debt          17,049               --
  Investment in BioMarin/Genzyme LLC               31,983           31,457
  Property, plant and equipment, net               37,321           55,466
  Acquired intangible assets, net                  15,306           11,655
  Goodwill                                         21,262           21,262
  Other assets                                      3,441            9,372
     Total assets                               $ 195,303        $ 463,436

        LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  Current liabilities:
   Accounts payable and accrued liabilities      $ 20,934         $ 32,166
   Current portion of acquisition
    obligation, net of discount                     7,477            6,787
   Current portion of deferred revenue              8,096            7,092
   Current portion of equipment and
    facility loans                                  3,860               --
      Total current liabilities                    40,367           46,045
  Convertible debt                                125,000          223,940
  Long-term portion of
   acquisition obligation,
   net of discount                                 70,873           68,548
  Deferred revenue, net of
   current portion                                 11,825            5,023
  Equipment and facility loan,
   net of current portion                          17,049               --
  Other long-term
   liabilities                                      7,651            2,078
      Total liabilities                           272,765          345,634
  Stockholders' equity (deficit):
    Common stock, $0.001 par value:
     150,000,000 shares authorized;
     74,301,610 91,725,528 shares
     issued and outstanding at
     December 31, 2005
     and December 31, 2006,
     respectively                                       75              92
    Additional paid-in capital                     485,570         709,359
    Accumulated other
     comprehensive loss                                (16)            (25)
    Accumulated deficit                           (563,091)       (591,624)
      Total stockholders' equity (deficit)         (77,462)        117,802
      Total liabilities and stockholders'
       equity (deficit)                          $ 195,303       $ 463,436


  Contact:
  Investors and Media
  Eugenia Shen
  BioMarin Pharmaceutical Inc.
  (415) 506-6570