Negative ENERGY This Morning For BMN 401

Research evidence excerpt

Negative ENERGY This Morning For BMN 401

May 18, 2026

Investment Conclusion

We reiterate our Outperform rating, but lower our PT to $90 (from $95). BMRN shares have underperformed the

sector YTD (-15%; NBI: flat) as investors wrestle with Voxzogo competitive dynamics and wait for more details on the

Amicus (FOLD, not covered) integration, which closed on April 27th, 2026 (see our thoughts here). Overall, we'd argue

the FOLD acquisition makes a lot of sense, as we see more value for commercial assets Pombiliti + Opfolda (Pompe

disease) and Galafold (Fabry disease) in BMRN's hands than FOLD's. Indeed, BMRN has a right to win in ERT, driven

by its impressive global sales force, where we expect the company to continue its strategy of BD in the space. And this

right to win is even more crucial given the ongoing competitive concerns for Voxzogo in Achondroplasia and eventually

Hypochondroplasia, with pivotal results expected for the latter indication imminently. Beyond Hypochondroplasia, in

2026, we also expect phase 1 results for BMN 351 in DMD at higher doses and potentially full results, at a medical

meeting, for BMN 401 in children 1-12 years of age, post the ENERGY 3 update.

Ultimately, we'd argue there's a lot to like about BMRN with multiple levers for value, but for the stock to work, the

Ascendis (ASND; covered by Kalpit Patel) and Bridge Bio (BBIO; covered by Andy Chen) overhangs need to clear; we

need to see clinical wins, particularly post the ENERGY 3 failure; management needs to commercially execute, and

we have to see continued strategic M&A, which we'd argue is starting to materialize. Regardless, BMRN continues

to trade at a P/E multiple of 10.2x, 7.2x, 6.5x and 6.1x on 2026-2029 earnings, an average discount of -60% as

compared to the S&P 500.