BIOMARIN PHARMACEUTICAL INC

Net Product Revenues

Net Product Revenues consisted of the following:

Net Product Revenues include revenues generated from our commercial products. In the U.S., our commercial products, except for PALYNZIQ and ALDURAZYME, are generally sold to specialty pharmacies or end users, such as hospitals, which act as retailers. PALYNZIQ is distributed in the U.S. through certain certified specialty pharmacies under the PALYNZIQ Risk Evaluation and Mitigation Strategy program, and ALDURAZYME is marketed worldwide by Sanofi. Outside the U.S., our commercial products are sold to authorized distributors or directly to government purchasers or hospitals, which act as the end users.

The increase in Net Product Revenues for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily attributed to the following:

•VIMIZIM and NAGLAZYME: higher sales volume due to timing of orders in countries that place large government orders, primarily from countries in the Middle East and Latin America;

•BRINEURA: higher sales volume due to new patients initiating therapy across all regions and timing of orders in countries that place large government orders; and

•VOXZOGO: higher sales volume from new patients initiating therapy across all regions.

These increases were partially offset by the following:

•ALDURAZYME: lower sales volume due to timing of order fulfillment to Sanofi; and

•ROCTAVIAN: lower sales volume due to our voluntary withdrawal of the product from the market announced in the first quarter of 2026.

In certain countries, governments place large periodic orders for our products. We expect that the timing of these large government orders will continue to be inconsistent, which has created in the past and may continue to create significant period to period variation in our revenues. We expect Total Revenues to increase over the next 12 months following the Amicus acquisition that closed in April 2026.

With respect to VOXZOGO, see also the risk factors “Our success depends on our ability to manage our growth and execute our corporate strategy.” and “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.” in "Risk Factors" in Part II, Item 1A of this Quarterly Report for additional information on risk factors that could impact our business and operations.

We face exposure to movements in foreign currency exchange rates, and use foreign currency exchange forward

contracts to hedge a percentage of our foreign currency exposure, primarily the Euro. Certain currencies are not included in our

hedging program, such as the Argentine Peso. With respect to the risks posed by fluctuations of both hedged and unhedged currencies against the U.S. dollar (USD), see the risk factor “Our international operations pose currency risks, which may adversely affect our operating results and net income” in “Risk Factors” included in Part II, Item 1Aof this Quarterly Report for additional information. The following table shows our Net Product Revenues denominated in USD and foreign currencies:

The favorable impact for the three months ended March 31, 2026 was primarily driven by strengthening of the Euro and Mexican Peso, partially offset by weakening of the Argentine Peso and the Japanese Yen. The unfavorable impact for the three months ended March 31, 2025 was primarily driven by weakening of the Brazilian Real, Euro, Colombian Peso and Argentine Peso.

Cost of Sales and Gross Margin

Cost of Sales includes raw materials, personnel and facility and other costs associated with manufacturing our commercial products. These costs include production materials, production costs at our manufacturing facilities, third-party manufacturing costs, amortization of technology transfer intangible assets and internal and external final formulation and packaging costs. Cost of Sales also includes royalties payable to third parties based on sales of our products, idle plant costs and charges for inventory write

downs.

The following table summarizes our Cost of Sales and Gross Margin:

Cost of Sales increased and Gross Margin decreased in the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to a $31.0 million charge associated with an unsuccessful process qualification campaign to expand NAGLAZYME manufacturing capabilities.

Research and Development

R&D expense includes costs associated with the research and development of product candidates and post-marketing research commitments related to our commercial products. R&D expense primarily includes preclinical and clinical studies, personnel and raw materials costs associated with manufacturing clinical product, quality control and assurance, other R&D activities, R&D facilities and regulatory costs.

We group all of our R&D activities and related expense into three categories: (i) Research and early pipeline, (ii) Later-stage clinical programs and (iii) Marketed products as follows:

We manage our R&D expense by identifying the R&D activities we anticipate will be performed during a given period and then prioritizing efforts based on scientific data, probability of successful development, market potential, available human and capital resources and other similar considerations. We continually review our product pipeline and the development status of product candidates and, as necessary, reallocate resources among the research and development portfolio that we believe will best support the future growth of our business.

We continuously evaluate the recoverability of costs associated with pre-launch or pre-qualification manufacturing

activities, if any, and capitalize the costs incurred related to those activities if we determine that recoverability is probable and

therefore future revenues are expected. If the related product candidate's marketing application is rejected by the applicable

regulators and the likelihood of future revenues for a product candidate become uncertain, the related manufacturing costs are

expensed as R&D expenses.

R&D expense consisted of the following:

The increase in R&D expense for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily due to higher spend on BMN 401, a later-stage clinical program acquired in the third quarter of 2025.

Selling, General and Administrative

Sales and marketing (S&M) expense primarily consisted of employee-related expenses for our sales group, brand marketing, patient support groups and pre-commercialization expenses related to our product candidates. General and administrative (G&A) expense primarily consisted of corporate support and other administrative expenses, including employee-related expenses.

SG&A expense consisted of the following:

S&M expense consisted of the following:

The increase in S&M expense for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily due to increased spending related to global expansion of Enzyme Therapies and VOXZOGO.

The increase in G&A expense for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily due to incremental administrative costs related to ongoing support of corporate initiatives and pre-close costs related to Amicus acquisition.

Intangible Asset Amortization

Intangible Asset Amortization was as follows:

Amortization of Intangible Assets for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was relatively flat. We expect Intangible Asset Amortization to significantly increase over the next 12 months following the Amicus acquisition that closed in April 2026.

Interest Income

We invest our cash equivalents and investments in U.S. government securities and other high credit quality debt securities in order to limit default and market risk.

The increase in Interest Income for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was mainly due to higher levels of cash, cash equivalents and investment balances. The $850.0 million proceeds from the issuance of 2034 Notes in the first quarter of 2026 were held in escrow and invested in money market funds as of March 31, 2026. We expect Interest Income to decrease over the next 12 months due to lower cash and investment balances following the Amicus acquisition that closed in April 2026.

Interest Expense

We incur interest expense primarily on our long-term debt. Interest Expense for the periods presented was as follows:

The increase in Interest Expense for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily due to issuance of 2034 Notes for $850.0 million aggregate principal in February 2026, and $5.3 million of bridge commitment fees recognized during the three months ended March 31, 2026. We expect Interest Expense to significantly increase over the next 12 months due to the financing related to the Amicus acquisition that closed in April 2026, including the new term loans issued in April 2026. See Note 6 and Note 13 to our accompanying Condensed Consolidated Financial Statements for additional information regarding our debt.

Other Income (Expense), Net

Other Income (Expense), Net for the periods presented was as follows:

The increase in Other Income (Expense), Net for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily due to gain on sale of marketable securities resulting from the sale of our short-term and long-term investments to fund the Amicus acquisition that closed in April 2026.

Provision for Income Taxes

The Provision for Income Taxes for the periods presented was as follows:

The decrease in Provision for Income Taxes for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was primarily due to lower pre-tax income, partially offset by higher tax expense related to stock based compensation.

Financial Condition, Liquidity and Capital Resources

Our cash, cash equivalents, restricted cash equivalents and investments as of March 31, 2026 and December 31, 2025 were as follows:

We believe cash generated from sales of our commercial products, in addition to our cash, cash equivalents and restricted cash equivalents and external financings, will be sufficient to satisfy our liquidity requirements for at least the next 12 months, including our debt service commitments relating to the Amicus acquisition. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operating activities and available cash. We will need to raise additional funds by issuing equity, debt or convertible securities, taking loans or entering into collaborative or other agreements if we are unable to satisfy our liquidity requirements. For example, we may require additional financing to fund the repayment of our outstanding indebtedness, future milestone payments and our future operations, including the commercialization of our products and product candidates currently under development, preclinical studies and clinical trials, and potential licenses and acquisitions. The timing and mix of our funding alternatives could change depending on many factors, including how much we elect to spend on our development programs, potential licenses and acquisitions of complementary technologies, products and companies or if we settle our long-term debt in cash. In addition, depending on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors, we may also from time to time seek to retire or purchase our outstanding convertible debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions or otherwise.

We are mindful that conditions in the current macroeconomic environment, such as inflation, changes in interest and foreign currency exchange rates, natural disasters, geopolitical instability, wars and military conflicts, impact of new or increased tariffs and escalating trade tensions, regulatory uncertainty, and supply chain disruptions could affect our ability to achieve our goals. In addition, we sell our products in certain countries that face economic volatility and weakness. Although we have historically collected receivables from customers in such countries, sustained weakness or further deterioration of the local economies and currencies may cause customers in those countries to be unable to pay for our products. We will continue to monitor these conditions and will attempt to adjust our business processes, as appropriate, to mitigate macroeconomic risks to our business.

Our cash flows are summarized as follows:

The increase in net cash provided by operating activities in the three months ended March 31, 2026 compared to March 31, 2025 was primarily attributed to decrease in inventory campaigns and timing of cash receipts from our customers, partially offset by decrease in net income.

The increase in net cash provided by investing activities in the three months ended March 31, 2026 compared to March 31, 2025 was primarily attributable to higher net maturities of available-for-sale (AFS) securities. All of the proceeds from the sale of these AFS securities were held as cash and subsequently used to finance a portion of the Amicus acquisition that closed in April 2026.

The increase in net cash provided by financing activities in the three months ended March 31, 2026 compared to March 31, 2025 was primarily attributable to proceeds from the issuance of 2034 Notes. The proceeds from the 2034 Notes were held in escrow as of March 31, 2026 and subsequently used to finance a portion of the Amicus acquisition that closed in April 2026.

Financing

Our $1.5 billion (undiscounted) of long-term debt as of March 31, 2026 will impact our liquidity due to the semi-annual cash interest payments as well as the repayment of the principal amount. As of March 31, 2026, our indebtedness consisted of our 5.5% senior unsecured notes due to be repaid in cash at maturity in February 2034, and senior subordinated convertible notes due in 2027, which, if not converted, will be required to be repaid in cash at maturity in May 2027.

In December 2025, we entered into a debt financing commitment letter and related fee letter with certain lenders, pursuant to which the lenders committed to provide the Company with debt financing up to approximately $3.7 billion (the Bridge Commitment) in the form of a 364-day senior secured bridge loan facility (Bridge Facility), the proceeds of which would be available for the acquisition of Amicus. In connection with the issuance of the 2034 Notes in February 2026, the Bridge Commitment was reduced from $3.7 billion to $2.8 billion.

In April 2026, in connection with the Amicus acquisition, we incurred $2.0 billion of indebtedness under a senior secured term loan B facility and $800.0 million of indebtedness under a senior secured term loan A facility (together Term Facilities) and entered into a $600.0 million senior secured revolving credit facility (2026 Revolving Facility and, together with the Term Facilities, the 2026 Senior Secured Credit Facilities). Upon entry into the Term Facilities, the remaining Bridge Commitment was reduced to zero. The term loan B facility matures in April 2033, and the term loan A facility and 2026 Revolving Facility each mature in April 2031. Borrowings under the Term Facilities and the 2026 Revolving Facility bear interest at the applicable interest rates specified in the credit agreement governing the 2026 Senior Secured Credit Facilities (the 2026 Credit Agreement). The 2026 Credit Agreement contains customary affirmative and negative covenants, including, among others, covenants that restrict our ability to incur additional indebtedness, create liens, make investments, pay dividends or make other restricted payments, dispose of assets, and enter into transactions with affiliates, in each case subject to exceptions set forth in the 2026 Credit Agreement.

In connection with the Amicus acquisition, we used approximately $1.6 billion of cash on hand, together with net proceeds from the 2034 Notes and borrowings under the Term Facilities, to fund the aggregate cash consideration of approximately $5.2 billion. As a result, our total indebtedness increased from approximately $1.5 billion as of March 31, 2026 to approximately $4.3 billion, and our material cash requirements have increased significantly, including semi-annual fixed-rate interest payments on the 2027 Notes and 2034 Notes, variable-rate interest payments on the Term Facilities, and scheduled principal repayments. The $600.0 million 2026 Revolving Facility remains available for working capital and general corporate purposes.

In August 2024, we entered into an unsecured revolving credit facility (2024 Revolving Facility) providing for $600.0 million in revolving loan commitments. The 2024 Revolving Facility was intended to finance ongoing working capital needs and for other general corporate purposes. The credit facility contains financial covenants including a maximum total net leverage ratio and a minimum interest coverage ratio. The 2024 Revolving Facility was to mature in August 2029. As of March 31, 2026, there were no amounts outstanding under the 2024 Revolving Facility and we were in compliance with all covenants. In April 2026, in connection with the entry into the 2026 Senior Secured Credit Facilities, we terminated the 2024 Revolving Facility.

For additional information related to our long-term debt, see Note 6 and Note 13 to our accompanying Condensed Consolidated Financial Statements and Note 10 to the Consolidated Financial Statements accompanying our Annual Report on Form 10-K for the year ended December 31, 2025.

Material Cash Requirements

Purchase and Lease Obligations, and Unrecognized Tax Benefits

As of March 31, 2026, we had obligations of approximately $593.6 million, of which $327.8 million is expected to be paid in 2026. Our purchase obligations are primarily related to firm purchase commitments entered into in the normal course of business to procure active pharmaceutical ingredients, certain inventory-related items, certain third-party R&D services, production services and facility construction services.

Our lease commitments and unrecognized tax benefits as of March 31, 2026 have not materially changed from those discussed in “Financial Condition, Liquidity and Capital Resources” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025.

See Note 12 to our accompanying Condensed Consolidated Financial Statements for additional information on our commitments.

Critical Accounting Estimates

In preparing our Condensed Consolidated Financial Statements in accordance with U.S. GAAP and pursuant to the rules and regulations promulgated by the Securities and Exchange Commission (the SEC), we make assumptions, judgments and estimates that can have a significant impact on our net income/loss and affect the reported amounts of certain assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, we evaluate our estimates and discuss our critical accounting policies and estimates with the Audit Committee of our Board of Directors. We base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under different assumptions or conditions. Historically, our assumptions, judgments and estimates relative to our critical accounting estimates have not differed materially from actual results.

There have been no significant changes to our critical accounting estimates during the three months ended March 31, 2026, compared to those disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026.

Recent Accounting Pronouncements

See Note 1 to our accompanying Condensed Consolidated Financial Statements for a description of recent accounting pronouncements, if any, and our expectation of their impact on our results of operations and financial condition.