BioMarin acquires Amicus Therapeutics

BioMarin Pharmaceutical Inc. has announced a definitive agreement to acquire Amicus Therapeutics for approximately $4.8 billion, expanding its foray into rare genetic disease treatments. The transaction, marked as BioMarin's largest acquisition to date, is an all-cash deal priced at $14.50 per Amicus share, offering a 33% premium over Amicus's preceding closing price. This acquisition is set to reinforce BioMarin's position as a leader in the biotech sector focused on rare diseases, marking a strategic shift towards more stable and commercially viable assets.

The acquisition aims to enhance BioMarin's portfolio amid challenges with its existing products. BioMarin has struggled with its hemophilia A gene therapy, Roctavian, and faces stiff competition for its treatment of dwarfism, Voxzogo. By acquiring Amicus, BioMarin gains access to Amicus's high-performing therapies targeting lysosomal storage disorders, notably including Galafold for Fabry disease and the recently introduced Pombiliti + Opfolda for Pompe disease. Amicus's strong commercial presence in these areas provides BioMarin a stable stream of revenues, anticipated to be immediately accretive to their earnings per share (EPS).

The agreement includes BioMarin acquiring all outstanding shares of Amicus, with funding supported by $3.7 billion in new non-convertible debt, arranged primarily by Morgan Stanley. Amicus's stakeholders are expected to vote on the acquisition, with regulatory approvals also pending before the deal's anticipated completion in the second quarter of 2026. This merger was unveiled following significant speculation about Amicus's standalone viability, given its existing successes in commercial applications for rare diseases.

In market reactions, BioMarin saw its shares appreciate by almost 15% to $62.29, in contrast to typical market responses to acquiring company shares. Investors appear to favor BioMarin's strategy shift towards cash-flow-positive assets. Meanwhile, Amicus's shares climbed by 31%, aligning closely with the acquisition price as market participants foresaw a smooth closing.

This acquisition places competitive pressure on other biopharmaceutical players, particularly in the rare disease domain, including corporations like Sanofi. BioMarin plans to leverage its broader international infrastructure, which spans 80 countries compared to Amicus's reach in 40, to further deploy Pombiliti and Opfolda globally. As these assets potentially double in market reach, BioMarin could gain significant ground in the global biotech landscape.