BioMarin Pharmaceutical Inc. has arranged a $850 million private offering of senior unsecured notes due 2034 and a $2 billion senior secured term loan B facility, expanding its existing $800 million term loan A and $600 million revolving credit line. The combined $2.85 billion of new debt will be used to pay the $14.50‑per‑share consideration for Amicus Therapeutics and related transaction costs, with the proceeds also supporting the closing of the deal by December 19, 2026.
The financing package is jointly guaranteed by BioMarin subsidiaries and, upon closing, by Amicus and its subsidiaries. By issuing debt instead of equity, BioMarin preserves shareholder value while maintaining a strong cash‑flow generation profile. Prior to the transaction, the company reported roughly $2 billion in cash and investments and a debt‑to‑equity ratio of about 9.9 %, indicating a modest leverage position. The new debt will raise the debt‑to‑equity ratio to roughly 15 %, a moderate increase that management believes can be comfortably serviced by operating cash flow.
The acquisition values Amicus at approximately $4.8 billion and adds two high‑growth products—Galafold for Fabry disease and Pombiliti‑Opfolda for Pompe disease—each with the potential to reach $1 billion in peak sales. BioMarin’s CEO Alexander Hardy said the deal will accelerate revenue growth immediately upon closing, expanding the company’s rare‑disease portfolio and global commercial platform.
In its most recent quarterly results, BioMarin reported revenue of $776 million, slightly below consensus, and an EPS of $0.12, missing estimates. The miss was largely driven by a $221 million in‑process research and development charge related to the Inozyme Pharma acquisition, offsetting gains from strong sales of VOXZOGO and PALYNZIQ. The company’s operating margin contracted to 9.9 % from 10.2 % in the prior year, reflecting pricing pressure in the rare‑disease segment and the impact of the one‑time charge.
Market reaction to the financing announcement was muted. Shares fell more than 3 % in pre‑market trading, a decline attributed to investor concerns about the increased leverage and the size of the acquisition. Analysts noted that while the deal offers significant growth potential, the debt load and integration risks may temper short‑term earnings growth.
Analysts upgraded their outlooks on the company, raising price targets to $98–$100 from $84–$80 and maintaining a Buy rating. The upgrades reflect confidence in the strategic fit of Amicus’s products and the expected synergies, but also acknowledge the higher debt burden and the need for disciplined cost management.
Overall, the financing and acquisition represent a bold step for BioMarin, expanding its product pipeline and commercial reach while modestly increasing leverage. Management’s focus on cost control and strategic integration will be critical to realizing the anticipated revenue upside and maintaining healthy cash‑flow generation.
The deal underscores BioMarin’s aggressive growth strategy through acquisitions, positioning it to capture new market opportunities in the rare‑disease space while navigating the challenges of higher debt and integration complexity.
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