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BioMarin Pharmaceutical Inc (NASDAQ:BMRN) Surged by 7.1% to $83 In Pre-Market Trading

Written by on September 19, 2013

BioMarin Pharmaceutical Inc (NASDAQ:BMRN) added following the announcement of DealReporter that Roche Holding Ltd (VTX:ROG) is assembling $15 billion in debt financing for an acquisition of the producer of drugs to treat unusual diseases. DealReporter reported, citing people familiar with the situation that Roche possibly will have to pay $95 to $105 per share for the Novato, California-based company. A 23 percent premium to BioMarin’s finishing level yesterday of $77.49 would be the lower end of that range, and would value the company at almost $13.5 billion.

BioMarin surged by 7.1 percent to $83 in New York in pre-market trading. Roche, the world’s largest producer of cancer drugs, has jumped by 0.9 percent to 239.90 Swiss francs. Silvia Dobry, a spokeswoman for the Basel, Switzerland-based company, refused to say anything about DealReporter article.

DealReporter said that UBS AG (VTX:UBSN) has illustrated it will lend $5 billion to Roche for the acquisition, leading the financing. DealReporter further the report that Citigroup Inc. is counseling Roche on the possible sale. However, JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. may support in financing.

In July, people familiar with the matter said that Roche taken into account a bid for Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), another producer of medicines for rare diseases. The people said at the time that Alexion involved Goldman as an adviser to get ready for a possible bid from Roche. Companies like Alexion and BioMarin produce medicines for as little as 5,000 to 10,000 patients globally, and charge as much as $400,000 a patient a year.

The rare medicines for small patient populations, identified as orphan drugs obtain special marketing rights as a benefit for their development in the U.S. and Europe, however, the small patient populations indicate smaller number of participants are required for clinical trials. They have drawn the concern of large pharmaceutical companies seeking to avoid a decline in sales as patents on blockbuster drugs die.BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) shares moved up 1.49% to $78.65.

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