What Happened?
Shares of biotech company BioMarin Pharmaceutical (NASDAQ: BMRN) jumped 19% in the afternoon session after the company announced it agreed to acquire Amicus Therapeutics for approximately $4.8 billion in an all-cash deal.
The transaction valued Amicus at $14.50 per share, which represented a 33% premium to its last closing price. The acquisition expanded BioMarin's position as a leader in rare diseases by adding two marketed treatments, Galafold and Pombiliti-Opfolda, to its portfolio. Investors reacted positively as the move was expected to accelerate revenue growth and boost earnings per share within the first year after closing. The deal also received unanimous approval from the boards of directors of both companies, signaling strong support for the merger.
The shares closed the day at $61.19, up 17.8% from previous close.
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What Is The Market Telling Us
BioMarin Pharmaceutical’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for BioMarin Pharmaceutical and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 28 days ago when the stock gained 3.5% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
BioMarin Pharmaceutical is down 8% since the beginning of the year, and at $61.19 per share, it is trading 16% below its 52-week high of $72.83 from March 2025. Investors who bought $1,000 worth of BioMarin Pharmaceutical’s shares 5 years ago would now be looking at an investment worth $699.18.
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