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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
______________________________________
Form 10-Q 
______________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                      .
Commission File Number: 000-26727
______________________________________ 
BioMarin Pharmaceutical Inc.
(Exact name of registrant as specified in its charter)  
______________________________________
Delaware68-0397820
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
770 Lindaro StreetSan RafaelCalifornia94901
(Address of principal executive offices)(Zip Code)
 
(415506-6700
(Registrant’s telephone number including area code)
______________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001BMRNThe Nasdaq Global Select Market
______________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large Accelerated FilerAccelerated Filer
Non-accelerated FilerSmaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)    Yes      No  
Applicable only to corporate issuers:
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 185,848,915 shares of common stock, par value $0.001, outstanding as of October 25, 2022.



Unless the context suggests otherwise, references in this Quarterly Report on Form 10-Q to “BioMarin,” the “Company,” “we,” “us,” and “our” refer to BioMarin Pharmaceutical Inc. and, where appropriate, its wholly owned subsidiaries.
BioMarin®, BRINEURA®, KUVAN®, NAGLAZYME®, PALYNZIQ®, VIMIZIM® and VOXZOGO® are our registered trademarks. ALDURAZYME® is a registered trademark of BioMarin/Genzyme LLC. ROCTAVIAN™ is a trademark of BioMarin Pharmaceutical Inc. All other brand names and service marks, trademarks and other trade names appearing in this report are the property of their respective owners.
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains “forward-looking statements” as defined under securities laws. Many of these statements can be identified by the use of terminology such as “believes,” “expects,” “intends,” “anticipates,” “plans,” “may,” “will,” “could,” would,” “projects,” “continues,” “estimates,” “potential,” “opportunity” or the negative versions of these terms and other similar expressions. Our actual results or experience could differ significantly from the forward-looking statements. Factors that could cause or contribute to these differences include those discussed in “Risk Factors,” in Part II, Item 1A of this Quarterly Report on Form 10-Q as well as information provided elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission (the SEC) on February 25, 2022. You should carefully consider that information before you make an investment decision.
You should not place undue reliance on these types of forward-looking statements, which speak only as of the date that they were made. These forward-looking statements are based on the beliefs and assumptions of the Company’s management based on information currently available to management and should be considered in connection with any written or oral forward-looking statements that the Company may issue in the future as well as other cautionary statements the Company has made and may make. Except as required by law, the Company does not undertake any obligation to release publicly any revisions to these forward-looking statements after completion of the filing of this Quarterly Report on Form 10-Q to reflect later events or circumstances or the occurrence of unanticipated events.
The discussion of the Company’s financial condition and results of operations should be read in conjunction with the Company’s Condensed Consolidated Financial Statements and the related Notes thereto included in this Quarterly Report on Form 10-Q.
Risk Factors Summary
The following is a summary of the principal risks that could adversely affect our business, financial condition, operating results, cash flows or stock price. Discussion of the risks listed below, and other risks that we face, are discussed in the section titled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q.
Business and Operational Risks
The COVID-19 pandemic could continue to materially adversely affect our business, results of operations, and financial condition.
Because the target patient populations for our products are relatively small, we must achieve significant market share and maintain high per-patient prices for our products to achieve and maintain profitability.
If we fail to obtain and maintain an adequate level of coverage and reimbursement for our products by third-party payers, the sales of our products would be adversely affected or there may be no commercially viable markets for our products.
If we fail to compete successfully with respect to product sales, we may be unable to generate sufficient sales to recover our expenses related to the development of a product program or to justify continued marketing of a product and our revenues could be adversely affected.
Changes in methods of treatment of disease could reduce demand for our products and adversely affect revenues.
If we fail to develop new products and product candidates or compete successfully with respect to acquisitions, joint ventures, licenses or other collaboration opportunities, our ability to continue to expand our product pipeline and our growth and development would be impaired.


The sale of generic versions of KUVAN by generic manufacturers has adversely affected and will continue to adversely affect our revenues and may cause a decline in KUVAN revenues faster than expected.
If we do not achieve our projected development goals in the timeframes we announce and expect, the commercialization of our product candidates may be delayed and the credibility of our management may be adversely affected and, as a result, our stock price may decline.
Regulatory Risks
If we fail to obtain regulatory approval to commercially market and sell our product candidates, or if approval of our product candidates is delayed, we will be unable to generate revenues from the sale of these product candidates, our potential for generating positive cash flow will be diminished, and the capital necessary to fund our operations will increase.
Any product for which we have obtained regulatory approval, or for which we obtain approval in the future, is subject to, or will be subject to, extensive ongoing regulatory requirements by the Food and Drug Administration, the European Medicines Agency and other comparable international regulatory authorities, and if we fail to comply with regulatory requirements or if we experience unanticipated problems with our products, we may be subject to penalties, we will be unable to generate revenues from the sale of such products, our potential for generating positive cash flow will be diminished, and the capital necessary to fund our operations will be increased.
To obtain regulatory approval to market our products, preclinical studies and costly and lengthy clinical trials are required and the results of the studies and trials are highly uncertain. Likewise, preliminary, initial or interim data from clinical trials should be considered carefully and with caution because the final data may be materially different from the preliminary, initial or interim data, particularly as more patient data become available.
Government price controls or other changes in pricing regulation could restrict the amount that we are able to charge for our current and future products, which would adversely affect our revenues and results of operations.
Government healthcare reform could increase our costs and adversely affect our revenues and results of operations.
Risks Related to ROCTAVIAN
Our ROCTAVIAN program is based on a gene therapy approach, which, as a novel technology, presents additional development and treatment risks in relation to our other, more traditional drug development programs.
As compared to our other, more traditional products, ROCTAVIAN may present additional problems with respect to the pricing, coverage, and reimbursement and acceptance of the product.
Financial and Financing Risks
If we continue to incur operating losses or are unable to sustain positive cash flows for a period longer than anticipated, we may be unable to continue our operations at planned levels and be forced to reduce our operations.
Manufacturing Risks
If we fail to comply with manufacturing regulations, our financial results and financial condition will be adversely affected.
If we are unable to successfully develop and maintain manufacturing processes for our product candidates to produce sufficient quantities at acceptable costs, we may be unable to support a clinical trial or be forced to


terminate a program, or if we are unable to produce sufficient quantities of our products at acceptable costs, we may be unable to meet commercial demand, lose potential revenue, have reduced margins or be forced to terminate a program.
Supply interruptions may disrupt our inventory levels and the availability of our products and product candidates and cause delays in obtaining regulatory approval for our product candidates, or harm our business by reducing our revenues.
Risks Related to International Operations
We conduct a significant amount of our sales and operations outside of the United States (U.S.), which subjects us to additional business risks that could adversely affect our revenues and results of operations.
A significant portion of our international sales are made based on special access programs, and changes to these programs could adversely affect our product sales and revenues in these countries.
Intellectual Property Risks
If we are unable to protect our intellectual property, we may not be able to compete effectively or preserve our market shares.
Competitors and other third parties may have developed intellectual property that could limit our ability to market and commercialize our products and product candidates, if approved.


BIOMARIN PHARMACEUTICAL INC.
TABLE OF CONTENTS
Page
FINANCIAL INFORMATION
Financial Statements
Condensed Consolidated Balance Sheets as of September 30, 2022 (Unaudited) and December 31, 2021
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three and nine months ended September 30, 2022 and 2021
Condensed Consolidated Statement of Stockholders’ Equity (Unaudited) for the three and nine months ended September 30, 2022 and 2021
Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2022 and 2021
Notes to Condensed Consolidated Financial Statements (Unaudited)
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Quantitative and Qualitative Disclosures about Market Risk
Controls and Procedures
OTHER INFORMATION
Legal Proceedings
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Other Information
Exhibits
SIGNATURES

2


PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements
BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2022 and December 31, 2021
(In thousands, except share amounts)
September 30, 2022December 31, 2021 ⁽¹⁾
ASSETS(unaudited) 
Current assets:
Cash and cash equivalents$761,515 $587,276 
Short-term investments512,253 426,599 
Accounts receivable, net419,622 373,399 
Inventory839,460 776,669 
Other current assets149,851 110,442 
Total current assets2,682,701 2,274,385 
Noncurrent assets:
Long-term investments372,302 507,793 
Property, plant and equipment, net1,051,821 1,035,461 
Intangible assets, net354,024 388,652 
Goodwill196,199 196,199 
Deferred tax assets1,455,205 1,450,161 
Other assets151,788 152,121 
Total assets$6,264,040 $6,004,772 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities$492,717 $498,265 
Short-term contingent consideration28,303 48,232 
Total current liabilities521,020 546,497 
Noncurrent liabilities:
Long-term convertible debt, net1,082,033 1,079,077 
Long-term contingent consideration 15,167 
Other long-term liabilities92,473 98,361 
Total liabilities1,695,526 1,739,102 
Stockholders’ equity:
Common stock, $0.001 par value: 500,000,000 shares authorized; 185,824,253 and 183,912,514 shares issued and outstanding, respectively
186 184 
Additional paid-in capital5,335,853 5,191,502 
Company common stock held by the Nonqualified Deferred Compensation Plan(9,325)(9,689)
Accumulated other comprehensive income30,749 14,432 
Accumulated deficit(788,949)(930,759)
Total stockholders’ equity4,568,514 4,265,670 
Total liabilities and stockholders’ equity$6,264,040 $6,004,772 
(1)Certain December 31, 2021 balances have been corrected for an immaterial error identified in the third quarter of 2022. See Note 1 to these Condensed Consolidated Financial Statements for details.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
3


BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three and Nine Months Ended September 30, 2022 and 2021
(In thousands, except per share amounts)
(unaudited)
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2022202120222021
REVENUES:
Net product revenues$493,348 $393,840 $1,516,533 $1,348,279 
Royalty and other revenues11,996 14,902 41,968 48,186 
Total revenues505,344 408,742 1,558,501 1,396,465 
OPERATING EXPENSES:
Cost of sales 116,288 103,537 356,379 350,765 
Research and development157,829 157,869 476,855 467,701 
Selling, general and administrative216,816 183,333 608,270 541,812 
Intangible asset amortization and contingent consideration16,828 17,222 50,935 52,648 
Gain on sale of nonfinancial assets, net  (108,000) 
Total operating expenses507,761 461,961 1,384,439 1,412,926 
INCOME (LOSS) FROM OPERATIONS(2,417)(53,219)174,062 (16,461)
Interest income4,999 1,827 9,324 8,737 
Interest expense(4,679)(3,870)(12,344)(11,491)
Other income (expense), net193 9,102 (3,908)10,439 
INCOME (LOSS) BEFORE INCOME TAXES(1,904)(46,160)167,134 (8,776)
Provision for (benefit from) income taxes4,748 (9,666)25,324 (2,594)
NET INCOME (LOSS)$(6,652)$(36,494)$141,810 $(6,182)
NET INCOME (LOSS) PER SHARE, BASIC$(0.04)$(0.20)$0.77 $(0.03)
NET INCOME (LOSS) PER SHARE, DILUTED$(0.04)$(0.20)$0.75 $(0.03)
Weighted average common shares outstanding, basic185,597 183,214 185,009 182,616 
Weighted average common shares outstanding, diluted185,597 183,214 192,252 182,616 
COMPREHENSIVE INCOME (LOSS)$5,625 $(25,316)$158,127 $20,196 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4


BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three and Nine Months Ended September 30, 2022 and 2021
(In thousands)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
Shares of common stock, beginning balances (1)
185,453 183,322 183,913 181,741 
Issuances under equity incentive plans372 246 1,912 1,827 
Shares of common stock, ending balances185,825 183,568 185,825 183,568 
Total stockholders' equity, beginning balances (1)
$4,504,808 $4,241,571 $4,270,741 $4,106,002 
Adjustment related to correction of immaterial error (Note 1)(5,071)(5,071)(5,071)(5,071)
Adjusted beginning balance (1)
4,499,737 4,236,500 4,265,670 4,100,931 
Common stock:
Beginning balances (1)
186 183 184 182 
Issuances under equity incentive plans, net of tax 1 2 2 
Ending balance186 184 186 184 
Additional paid-in capital:
Beginning balance (1)
5,272,666 5,083,831 5,191,502 4,993,407 
Issuances under equity incentive plans, net of tax6,847 (460)(8,306)(11,551)
Stock-based compensation56,305 50,353 153,021 151,500 
Common stock held by the Nonqualified Deferred Compensation Plan (the NQDC)35 18 (364)386 
Ending balance
5,335,853 5,133,742 5,335,853 5,133,742 
Company common stock held by the NQDC:
Beginning balance (1)
(9,290)(10,207)(9,689)(9,839)
Common stock held by the NQDC(35)(18)364 (386)
Ending balance(9,325)(10,225)(9,325)(10,225)
Accumulated other comprehensive income (loss):
Beginning balance (1)
18,472 (939)14,432 (16,139)
Other comprehensive income (loss)12,277 11,178 16,317 26,378 
Ending balance30,749 10,239 30,749 10,239 
Accumulated Deficit:
Beginning balance (1)
(777,226)(831,297)(925,688)(861,609)
Adjustment related to correction of immaterial error (Note 1)(5,071)(5,071)(5,071)(5,071)
Adjusted beginning balance (1)
(782,297)(836,368)(930,759)(866,680)
Net income (loss)(6,652)(36,494)141,810 (6,182)
Ending balance(788,949)(872,862)(788,949)(872,862)
Total stockholders' equity, ending balances
$4,568,514 $4,261,078 $4,568,514 $4,261,078 
(1)The beginning balances for the nine-month periods were derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 25, 2022, except for the beginning balances of Accumulated Deficit and Total Stockholders’ Equity for the three and nine-month periods which have been corrected for an immaterial error identified in the third quarter of 2022. See Note 1 to these Condensed Consolidated Financial Statements for details.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 
5


BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2022 and 2021
(In thousands)
(unaudited)
Nine Months Ended September 30,
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$141,810 $(6,182)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization77,416 82,053 
Non-cash interest expense3,089 3,114 
Amortization of premium on investments3,741 3,279 
Stock-based compensation149,574 153,372 
Gain on sale of nonfinancial assets, net(108,000) 
Deferred income taxes(743)(12,020)
Unrealized foreign exchange gain(16,075)(1,347)
Non-cash changes in the fair value of contingent consideration2,243 6,254 
Other(700)(1,317)
Changes in operating assets and liabilities:
Accounts receivable, net(53,752)65,513 
Inventory(27,419)(19,125)
Other current assets(8,558)27,029 
Other assets12,140 (407)
Accounts payable and other short-term liabilities(2,398)(7,129)
Other long-term liabilities(3,252)269 
Net cash provided by operating activities169,116 293,356 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment(85,271)(66,840)
Maturities and sales of investments477,244 502,112 
Purchases of investments(457,382)(737,144)
Proceeds from sale of nonfinancial assets110,000  
Purchase of intangible assets(9,910)(8,026)
Other (994)
Net cash provided by (used in) investing activities34,681 (310,892)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of awards under equity incentive plans43,866 32,877 
Taxes paid related to net share settlement of equity awards(50,696)(44,428)
Payment of contingent consideration(21,054) 
Principal repayments of financing leases(1,635)(2,492)
Other (401)
Net cash used in financing activities(29,519)(14,444)
Effect of exchange rate changes on cash(39)(35)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS174,239 (32,015)
Cash and cash equivalents:
Beginning of period$587,276 $649,158 
End of period$761,515 $617,143 
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes$13,425 $15,531 
Cash paid for interest$6,575 $6,673 
SUPPLEMENTAL CASH FLOW DISCLOSURES FOR NON-CASH INVESTING AND FINANCING ACTIVITIES:
Decrease in accounts payable and accrued liabilities related to fixed assets$(5,240)$(7,690)
Increase (decrease) in accounts payable and accrued liabilities related to intangible assets$(224)$9,386 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
6

BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)

(1) BUSINESS OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations
BioMarin Pharmaceutical Inc. (the Company) is a global biotechnology company that develops and commercializes innovative therapies for people with serious and life-threatening rare diseases and medical conditions. The Company selects product candidates for diseases and conditions that represent a significant unmet medical need, have well-understood biology and provide an opportunity to be first-to-market or offer a significant benefit over existing products. The Company’s portfolio consists of eight commercial products and multiple clinical and preclinical product candidates for the treatment of various diseases. ROCTAVIAN (formerly known as valoctocogene roxaparvovec) was granted conditional marketing approval in the European Union (EU) on August 24, 2022.

Basis of Presentation
The accompanying Condensed Consolidated Financial Statements have been prepared pursuant to United States generally accepted accounting principles (U.S. GAAP) and the rules and regulations of the Securities and Exchange Commission (the SEC) for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. GAAP for complete financial statements, although the Company believes that the disclosures herein are adequate to ensure that the information presented is not misleading. The Condensed Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2022 or any other period.
Use of Estimates
U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the Condensed Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be different from those estimates. The Condensed Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The full extent to which the COVID-19 pandemic could continue to directly or indirectly impact the Company’s business, results of operations and financial condition, including revenues, expenses, reserves and allowances, manufacturing, clinical trials and research and development costs, will depend on future developments that remain uncertain at this time, particularly as virus variants continue to spread. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods.
Management performed an evaluation of the Company’s activities through the date of filing of this Quarterly Report on Form 10-Q, and has concluded that there were no subsequent events or transactions that occurred subsequent to the balance sheet date prior to filing this Quarterly Report on Form 10-Q that would require recognition or disclosure in the Condensed Consolidated Financial Statements except for the transaction disclosed in Note 12 to these Condensed Consolidated Financial Statements.
Correction of Immaterial Error
During the three months ended September 30, 2022, the Company became aware of an unrecorded amount due to a third party following the January 2020 sale of the worldwide rights of Firdapse, the Company's commercial product for the treatment of Lambert-Eaton myasthenic syndrome. The Company evaluated the materiality of the previously described error from a qualitative and quantitative perspective. Based on such evaluation, the Company concluded that the error was not material to any individual current or prior period, nor did it have an effect on the Company’s trend of financial results, taking into account the requirements of the SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements. Although the effect of the error was not material to the current or previously issued financial statements, the Company has corrected the accompanying Condensed Consolidated Balance Sheet and Statements of Stockholders Equity. The correction increased the fiscal year 2021 beginning balance of Accumulated Deficit and decreased Total Stockholders’ Equity by $5.1 million, and had the following impact on certain December 31, 2021 balances: an increase to Accounts Payable and Accrued Liabilities of $6.7 million, an increase to Deferred Tax Assets of $1.1 million, an increase to Other Assets of $0.4 million and a decrease to Other Long-term Liabilities of $0.1 million.
7

BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
Significant Accounting Policies
There have been no material changes to the Company’s significant accounting policies during the nine months ended September 30, 2022, as compared to the significant accounting policies disclosed in Note 1 – Business Overview and Significant Accounting Policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Recent Accounting Pronouncements
There have been no new accounting pronouncements adopted by the Company or new accounting pronouncements issued by the Financial Accounting Standards Board during the nine months ended September 30, 2022, as compared to the recent accounting pronouncements described in Note 1 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, that the Company believes are of significance or potential significance to the Company.
(2) FINANCIAL INSTRUMENTS
All marketable securities were classified as available-for-sale at September 30, 2022 and December 31, 2021.
The following tables show the Company’s cash, cash equivalents and available-for-sale securities by significant investment category for each period presented:
September 30, 2022
Amortized CostGross
Unrealized
Gains
Gross
Unrealized
Losses
Aggregate Fair ValueCash and Cash Equivalents
Short-term
Marketable
Securities (1)
Long-term
Marketable
Securities (2)
Level 1:
Cash$358,325 $ $ $358,325 $358,325 $ $ 
Level 2:
Money market instruments347,274   347,274 347,274   
Corporate debt securities522,723 10 (14,622)508,111 978 273,333 233,800 
U.S. government agency securities354,810 4 (4,377)350,437 54,938 209,469 86,030 
Commercial paper29,461 1 (22)29,440  29,440  
Asset-backed securities53,182  (699)52,483  11 52,472 
Subtotal1,307,450 15 (19,720)1,287,745 403,190 512,253 372,302 
Total$1,665,775 $15 $(19,720)$1,646,070 $761,515 $512,253 $372,302 
8

BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
December 31, 2021
Amortized CostGross
Unrealized
Gains
Gross
Unrealized
Losses
Aggregate Fair ValueCash and Cash Equivalents
Short-term
Marketable
Securities (1)
Long-term
Marketable
Securities (2)
Level 1:
Cash$301,177 $ $ $301,177 $301,177 $ $ 
Level 2:
Money market instruments285,099   285,099 285,099   
Corporate debt securities584,000 386 (2,086)582,300  200,304 381,996 
U.S. government agency securities224,774 182 (325)224,631  146,421 78,210 
Commercial paper68,384   68,384 1,000 67,384  
Asset-backed securities56,936 10 (95)56,851  9,451 47,400 
Foreign and other3,097 141 (12)3,226  3,039 187 
Subtotal1,222,290 719 (2,518)1,220,491 286,099 426,599 507,793 
Total$1,523,467 $719 $(2,518)$1,521,668 $587,276 $426,599 $507,793 
(1)    The Company’s short-term marketable securities mature in one year or less.
(2)    The Company’s long-term marketable securities mature between one and five years.
As of September 30, 2022, the Company had the ability and intent to hold all investments that were in an unrealized loss position until maturity. The Company considered its intent and ability to hold the securities until recovery of amortized cost basis, the extent to which fair value is less than amortized cost basis, conditions specifically related to the security’s industry and geography, payment structure and history and changes to the ratings (if any) in determining that the decline in fair value compared to carrying value is not related to a credit loss.
The Company has certain investments in non-marketable equity securities, measured using unobservable valuation inputs and remeasured on a nonrecurring basis, which are collectively considered strategic investments. As of September 30, 2022 and December 31, 2021, the fair value of the Company’s strategic investments was $23.7 million and $16.5 million, respectively. These investments were recorded in Other Assets in the Company’s Condensed Consolidated Balance Sheets.
(3) SUPPLEMENTAL FINANCIAL STATEMENTS INFORMATION
Supplemental Balance Sheet Information
Inventory consisted of the following:
September 30,
2022
December 31,
2021
Raw materials$109,480 $80,269 
Work-in-process425,505 415,261 
Finished goods304,475 281,139 
Total inventory$839,460 $776,669 
Property, Plant and Equipment, Net consisted of the following:
9

BIOMARIN PHARMACEUTICAL INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
September 30,
2022
December 31,
2021
Property, plant and equipment, gross$1,834,220 $1,756,035 
Accumulated depreciation(782,399)(720,574)
Total property, plant and equipment, net$1,051,821 $1,035,461 
Depreciation expense, net of amounts capitalized into inventory, for the three and nine months ended September 30, 2022 was $8.7 million and $29.9 million, respectively. Depreciation expense, net of amounts capitalized into inventory, for the three and nine months ended September 30, 2021 was $11.4 million and $35.7 million, respectively.
Intangible Assets, Net consisted of the following:
September 30,
2022
December 31,
2021
Finite-lived intangible assets$690,334 $677,350 
Accumulated amortization(336,310)(288,698)
Net carrying value$354,024 $388,652 
    
Accounts Payable and Accrued Liabilities consisted of the following:
September 30,
2022
December 31,
2021
Accounts payable and accrued operating expenses$207,165 $199,678 
Accrued compensation expense161,112 204,446 
Accrued rebates payable71,653 47,987 
Accrued royalties payable14,487 15,215 
Foreign currency exchange forward contracts13,075 6,263 
Lease liabilities9,226 10,464 
Accrued income taxes7,573 1,213 
Deferred revenue415 6,956 
Other8,011 6,043 
Total accounts payable and accrued liabilities$492,717 $498,265 
Supplemental Statement of Comprehensive Income (Loss) Information
Gain on Sale of Nonfinancial Assets, Net for the nine months ended September 30, 2022 consisted of the completed sale of a Rare Pediatric Disease Priority Review Voucher (PRV) the Company received from the Food and Drug Administration (FDA) in connection with the U.S. approval of VOXZOGO. As a result of the PRV sale, the Company recognized a $108.0 million net gain on sale of nonfinancial assets in the first quarter of 2022 in the Company's Consolidated Statement of Comprehensive Income.
(4) FAIR VALUE MEASUREMENTS
The Company measures certain financial assets and liabilities at fair value in accordance with the policy described in Note 1 – Business Overview and Significant Accounting Policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
The following tables present the classification within the fair value hierarchy of financial assets and liabilities not disclosed elsewhere in these Condensed Consolidated Financial Statements that are remeasured on a recurring basis as of September 30, 2022 and December 31, 2021. Other than the Company’s fixed-rate convertible debt disclosed in Note 6 – Debt, there were no
10

BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
financial assets or liabilities that were remeasured using a quoted price in active markets for identical assets (Level 1) as of September 30, 2022 or December 31, 2021.
Fair Value Measurements as of September 30, 2022
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Assets:
Other current assets:
NQDC Plan assets$2,306 $ $2,306 
Other assets:
NQDC Plan assets18,889  18,889 
Restricted investments (1)
2,439  2,439 
Total other assets21,328  21,328 
Total assets$23,634 $ $23,634 
Liabilities:
Current liabilities:
NQDC Plan liability$2,306 $ $2,306 
Contingent consideration 28,303 28,303 
Total current liabilities2,306 28,303 30,609 
Other long-term liabilities:
NQDC Plan liability18,889  18,889 
Total liabilities$21,195 $28,303 $49,498 
Fair Value Measurements as of December 31, 2021
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Assets:
Other current assets:
NQDC Plan assets$2,043 $ $2,043 
Other assets:
NQDC Plan assets23,929  23,929 
Restricted investments (1)
2,940  2,940 
Total other assets26,869  26,869 
Total assets$28,912 $ $28,912 
Liabilities:
Current liabilities:
NQDC Plan liability$2,043 $ $2,043 
Contingent consideration 48,232 48,232 
Total current liabilities2,043 48,232 50,275 
Other long-term liabilities:
NQDC Plan liability23,929  23,929 
Contingent consideration 15,167 15,167 
Total other long-term liabilities23,929 15,167 39,096 
Total liabilities$25,972 $63,399 $89,371 
(1)    The restricted investments at September 30, 2022 and December 31, 2021 secure the Company's irrevocable standby letters of credit obtained in connection with certain commercial agreements.
11

BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
There were no transfers between levels during the three and nine months ended September 30, 2022.
Liabilities measured at fair value using Level 3 inputs consisted of contingent consideration. The following table represents a roll-forward of contingent consideration.

Contingent consideration as of December 31, 2021$63,399 
Milestone payments to Ares Trading S.A. (Merck Serono)(33,293)
Realized foreign exchange gain on settlement of contingent consideration(133)
Changes in fair value of contingent consideration3,764 
Foreign exchange remeasurement of Euro denominated contingent consideration(5,434)
Contingent consideration as of September 30, 2022$28,303 
(5) DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES
The Company uses foreign currency exchange forward contracts (forward contracts) to protect against the impact of changes in the value of forecasted foreign currency cash flows resulting from revenues and operating expenses denominated in currencies other than the U.S. Dollar (USD), primarily the Euro. Certain of these forward contracts are designated as cash flow hedges and have maturities of up to two years. The Company also enters into forward contracts to manage foreign exchange risk related to asset or liability positions denominated in currencies other than USD. Such forward contracts are considered to be economic hedges, are not designated as hedging instruments and have maturities of up to three months. The Company does not use derivative instruments for speculative trading purposes. The Company is exposed to counterparty credit risk on its derivatives. The Company has established and maintains strict counterparty credit guidelines and enters into hedging agreements with financial institutions that are investment grade or better to minimize the Company’s exposure to potential defaults. The Company is not required to pledge collateral under these agreements.
The following table summarizes the aggregate notional amounts for the Company’s derivatives outstanding as of the periods presented.
Forward ContractsSeptember 30, 2022December 31, 2021
Derivatives designated as hedging instruments:
Sell$483,387 $740,667 
Purchase$99,212 $183,256 
Derivatives not designated as hedging instruments:
Sell$118,026 $113,257 
Purchase$5,812 $31,068 
12

BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
The fair value carrying amounts of the Company’s derivatives, as classified within the fair value hierarchy, were as follows:
Balance Sheet LocationSeptember 30, 2022December 31, 2021
Derivatives designated as hedging instruments:
Asset Derivatives - Level 2 (1)
Other current assets$51,050 $17,357 
Other assets10,012 4,991 
Subtotal$61,062 $22,348