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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 March 31, 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.  


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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: 184,995,348 shares of common stock, par value $0.001, outstanding as of April 25, 2022.



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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. 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 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.


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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 Valoctocogene Roxaparvovec
Our valoctocogene roxaparvovec 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, our gene therapy product candidate valoctocogene roxaparvovec, if approved, may present additional problems with respect to the pricing, coverage, and reimbursement and acceptance of the product candidate.
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.


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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.


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BIOMARIN PHARMACEUTICAL INC.
TABLE OF CONTENTS
Page
FINANCIAL INFORMATION
Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended March 31, 2022 and 2021
Condensed Consolidated Statement of Stockholders’ Equity (Unaudited) for the three months ended March 31, 2022 and 2021
Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 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
March 31, 2022 and December 31, 2021
(In thousands, except share amounts)
March 31,
2022
December 31,
2021 (1)
ASSETS(unaudited) 
Current assets:
Cash and cash equivalents$605,440 $587,276 
Short-term investments450,798 426,599 
Accounts receivable, net430,147 373,399 
Inventory786,356 776,669 
Other current assets121,283 110,442 
Total current assets2,394,024 2,274,385 
Noncurrent assets:
Long-term investments462,827 507,793 
Property, plant and equipment, net1,039,544 1,035,461 
Intangible assets, net374,251 388,652 
Goodwill196,199 196,199 
Deferred tax assets1,446,676 1,449,075 
Other assets149,186 151,760 
Total assets$6,062,707 $6,003,325 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities$426,418 $491,590 
Short-term contingent consideration64,000 48,232 
Total current liabilities490,418 539,822 
Noncurrent liabilities:
Long-term convertible debt, net1,080,061 1,079,077 
Long-term contingent consideration 15,167 
Other long-term liabilities100,913 98,519 
Total liabilities1,671,392 1,732,585 
Stockholders’ equity:
Common stock, $0.001 par value: 500,000,000 shares authorized; 184,901,764 and 183,912,514 shares issued and outstanding, respectively
185 184 
Additional paid-in capital5,206,287 5,191,502 
Company common stock held by Nonqualified Deferred Compensation Plan (the NQDC)
(9,389)(9,689)
Accumulated other comprehensive income (loss)(877)14,432 
Accumulated deficit(804,891)(925,689)
Total stockholders’ equity4,391,315 4,270,740 
Total liabilities and stockholders’ equity$6,062,707 $6,003,325 
(1)December 31, 2021 balances 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.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
3


BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three Months Ended March 31, 2022 and 2021
(In thousands, except per share amounts)
(unaudited)
 
Three Months Ended
March 31,
 
20222021
REVENUES:
Net product revenues$505,525 $467,769 
Royalty and other revenues13,834 18,261 
Total revenues519,359 486,030 
OPERATING EXPENSES:
Cost of sales116,965 120,166 
Research and development160,836 148,725 
Selling, general and administrative194,619 174,318 
Intangible asset amortization and contingent consideration17,612 17,735 
Gain on sale of nonfinancial assets, net(108,000) 
Total operating expenses382,032 460,944 
INCOME FROM OPERATIONS137,327 25,086 
Interest income1,820 2,439 
Interest expense(3,806)(3,804)
Other expense, net(1,154)(493)
INCOME BEFORE INCOME TAXES134,187 23,228 
Provision for income taxes13,389 5,857 
NET INCOME$120,798 $17,371 
NET INCOME PER SHARE, BASIC$0.66 $0.10 
NET INCOME PER SHARE, DILUTED$0.63 $0.09 
Weighted average common shares outstanding, basic183,990 181,772 
Weighted average common shares outstanding, diluted194,886 184,365 
COMPREHENSIVE INCOME$105,489 $38,514 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4


BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three Months Ended March 31, 2022 and 2021
(In thousands)
(unaudited)
Three Months Ended
March 31,
 20222021
Shares of common stock, beginning balances (1)
183,913 181,741 
Issuances under equity incentive plans989 930 
Shares of common stock, ending balances184,902 182,671 
Total stockholders' equity, beginning balances (1)
$4,270,740 $4,106,002 
Common stock:
Beginning balances (1)
184 182 
Issuances under equity incentive plans, net of tax1 1 
Ending balance185 183 
Additional paid-in capital:
Beginning balance (1)
5,191,502 4,993,407 
Issuances under equity incentive plans, net of tax(33,633)(29,916)
Stock-based compensation48,718 47,409 
Common stock held by the NQDC(300)(281)
Ending balance
5,206,287 5,010,619 
Company common stock held by the NQDC:
Beginning balance (1)
(9,689)(9,839)
Common stock held by the NQDC300 281 
Ending balance(9,389)(9,558)
Accumulated other comprehensive income (loss):
Beginning balance (1)
14,432 (16,139)
Other comprehensive income (loss)(15,309)21,143 
Ending balance(877)5,004 
Accumulated Deficit:
Beginning balance (1)
(925,689)(861,609)
Net income120,798 17,371 
Ending balance(804,891)(844,238)
Total stockholders' equity, ending balances
$4,391,315 $4,162,010 
(1)The beginning balances for the three-month periods were derived from the audited Consolidated Financial Statements included in Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 25, 2022.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 
5


BIOMARIN PHARMACEUTICAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2022 and 2021
(In thousands)
(unaudited)
Three Months Ended March 31,
20222021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$120,798 $17,371 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization27,343 27,983 
Non-cash interest expense1,033 1,043 
Amortization of premium on investments1,652 673 
Stock-based compensation47,833 49,503 
Gain on sale of nonfinancial assets, net(108,000) 
Deferred income taxes4,800 3,335 
Unrealized foreign exchange (gain) loss(6,887)3,950 
Non-cash changes in the fair value of contingent consideration1,989 2,255 
Other700 (871)
Changes in operating assets and liabilities:
Accounts receivable, net(54,813)40,294 
Inventory1,125 (6,425)
Other current assets(8,011)42,784 
Other assets1,440 1,617 
Accounts payable and accrued liabilities(78,143)(72,304)
Other long-term liabilities1,710 2,304 
Net cash (used in) provided by operating activities(45,431)113,512 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment(28,817)(25,507)
Maturities and sales of investments155,818 194,637 
Purchases of available-for-sale securities(147,361)(237,171)
Proceeds from sale of nonfinancial assets110,000  
Purchase of intangible assets(1,858)(2,747)
Net cash provided by (used in) investing activities87,782 (70,788)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercises of awards under equity incentive plans8,235 5,817 
Taxes paid related to net share settlement of equity awards(32,949)(29,097)
Principal repayments of financing leases(566)(1,084)
Net cash used in financing activities(25,280)(24,364)
Effect of exchange rate changes on cash1,093 (205)
NET INCREASE IN CASH AND CASH EQUIVALENTS18,164 18,155 
Cash and cash equivalents:
Beginning of period$587,276 $649,158 
End of period$605,440 $667,313 
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for income taxes$1,316 $2,998 
Cash paid for interest$1,422 $1,465 
SUPPLEMENTAL CASH FLOW DISCLOSURES FOR NON-CASH INVESTING AND FINANCING ACTIVITIES:
Decrease in accounts payable and accrued liabilities related to fixed assets$(2,481)$(12,795)
Increase (decrease) in accounts payable and accrued liabilities related to intangible assets$(637)$1,298 

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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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 seven commercial products and multiple clinical and preclinical product candidates for the treatment of various diseases.
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 months ended March 31, 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.
Significant Accounting Policies
There have been no material changes to the Company’s significant accounting policies during the three months ended March 31, 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 three months ended March 31, 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.


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BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
(2) FINANCIAL INSTRUMENTS
All marketable securities were classified as available-for-sale at March 31, 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:
March 31, 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$441,957 $ $ $441,957 $441,957 $ $ 
Level 2:
Money market instruments160,485   160,485 160,485   
Corporate debt securities585,315 62 (9,815)575,562  240,777 334,785 
U.S. government agency securities237,962 47 (2,059)235,950  155,716 80,234 
Commercial paper50,518  (10)50,508 2,998 47,510  
Asset-backed securities51,822 1 (414)51,409  3,785 47,624 
Foreign and other3,080 136 (22)3,194  3,010 184 
Subtotal1,089,182 246 (12,320)1,077,108 163,483 450,798 462,827 
Total$1,531,139 $246 $(12,320)$1,519,065 $605,440 $450,798 $462,827 
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 March 31, 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.
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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 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 March 31, 2022 and December 31, 2021, the fair value of the Company’s strategic investments was $16.5 million. 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:
March 31,
2022
December 31,
2021
Raw materials$92,110 $80,269 
Work-in-process402,319 415,261 
Finished goods291,927 281,139 
Total inventory$786,356 $776,669 

Inventory as of March 31, 2022, included manufacturing-related costs for the commercial production of valoctocogene roxaparvovec inventory totaling $11.3 million. Valoctocogene roxaparvovec is an investigational gene therapy product candidate for the treatment of severe hemophilia A. The Company must receive marketing approval from the applicable regulators before the valoctocogene roxaparvovec inventory can be sold commercially. Starting in the first quarter of 2022, the Company believed that material uncertainties related to the ultimate regulatory approval of valoctocogene roxaparvovec by the European Medicines Agency had been significantly reduced and the Company expects to realize economic benefit in the future. A number of factors were taken into consideration, including the current status in the drug development process, pivotal clinical trial results for the underlying product candidate, results from meetings and correspondence with the relevant regulatory authorities following the submission of the additional two-year follow-up safety and efficacy data requested by the regulatory agencies in the third quarter of 2020, historical experience, as well as potential impediments to the approval process such as product safety or efficacy, and commercialization and marketplace trends.
See 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 for additional information related to the Company’s policies on inventory produced prior to regulatory approval.
Property, Plant and Equipment, Net consisted of the following:
March 31,
2022
December 31,
2021
Property, plant and equipment, gross$1,780,711 $1,756,035 
Accumulated depreciation(741,167)(720,574)
Total property, plant and equipment, net$1,039,544 $1,035,461 
Depreciation expense, net of amounts capitalized into inventory, for the three months ended March 31, 2022 and March 31, 2021 was $11.7 million and $12.5 million, respectively.
Intangible Assets, Net consisted of the following:
March 31,
2022
December 31,
2021
Finite-lived intangible assets$678,601 $677,350 
Accumulated amortization(304,350)(288,698)
Net carrying value$374,251 $388,652 
    
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BIOMARIN PHARMACEUTICAL INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
Accounts Payable and Accrued Liabilities consisted of the following:
March 31,
2022
December 31,
2021
Accounts payable and accrued operating expenses$187,810 $193,003 
Accrued compensation expense127,938 204,446 
Accrued rebates payable56,295 47,987 
Accrued royalties payable16,026 15,215 
Foreign currency exchange forward contracts12,716 6,263 
Lease liabilities10,829 10,464 
Value added taxes payable5,096 1,935 
Accrued income taxes3,347 1,213 
Deferred revenue306 6,956 
Other6,055 4,108 
Total accounts payable and accrued liabilities$426,418 $491,590 
Supplemental Statement of Comprehensive Income Information
Gain on Sale of Nonfinancial Assets, Net in the first quarter of 2022 consisted of the completed sale of a Rare Pediatric Disease Priority Review Voucher (PRV) the Company received from the 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 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 March 31, 2022 and December 31, 2021. Other than the Company’s fixed-rate convertible debt disclosed in Note 6 – Debt, there were no financial assets or liabilities that were remeasured using a quoted price in active markets for identical assets (Level 1) as of March 31, 2022 or December 31, 2021.
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BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
Fair Value Measurements as of March 31, 2022
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Assets:
Other current assets:
NQDC Plan assets$2,859 $ $2,859 
Other assets:
NQDC Plan assets22,387  22,387 
Restricted investments (1)
2,513  2,513 
Total other assets24,900  24,900 
Total assets$27,759 $ $27,759 
Liabilities:
Current liabilities:
NQDC Plan liability$2,859 $ $2,859 
Contingent consideration 64,000 64,000 
Total current liabilities2,859 64,000 66,859 
Other long-term liabilities:
NQDC Plan liability22,387  22,387 
Total liabilities$25,246 $64,000 $89,246 
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 March 31, 2022 and December 31, 2021 secure the Company's irrevocable standby letters of credit obtained in connection with certain commercial agreements.
There were no transfers between levels during the three months ended March 31, 2022.
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BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
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 
Changes in the fair value of contingent consideration1,989 
Foreign exchange remeasurement of Euro denominated contingent consideration(1,388)
Contingent consideration as of March 31, 2022$64,000 

(5) DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES
The Company uses foreign currency exchange forward contracts (forward contracts) to protect against the reduction in 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 one year, nine months. 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 ContractsMarch 31,
2022
December 31, 2021
Derivatives designated as hedging instruments:
Sell$650,302 $740,667 
Purchase$147,206 $183,256 
Derivatives not designated as hedging instruments:
Sell$98,800 $113,257 
Purchase$3,565 $31,068 
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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 LocationMarch 31,
2022
December 31, 2021
Derivatives designated as hedging instruments:
Asset Derivatives - Level 2 (1)
Other current assets$20,763 $17,357 
Other assets3,739 4,991 
Subtotal$24,502 $22,348 
Liability Derivatives - Level 2 (1)
Accounts payable and accrued liabilities$12,670 $5,487 
Other long-term liabilities2,984 1,378 
Subtotal$15,654 $6,865 
Derivatives not designated as hedging instruments:
Asset Derivatives - Level 2 (1)
Other current assets$98 $427 
Liability Derivatives - Level 2 (1)
Accounts payable and accrued liabilities$46 $776 
Total Derivatives Assets$24,600 $22,775 
Total Derivatives Liabilities$15,700 $7,641 
(1)    For additional discussion of fair value measurements, see 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 summarize the impact of gains and losses from the Company's derivatives on its Condensed Consolidated Statements of Comprehensive Income for the periods presented.
Three Months Ended March 31,
20222021
Derivatives Designated as Cash Flow Hedging InstrumentsCash Flow Hedging Gains (Losses)
Reclassified into Earnings
Cash Flow Hedging Gains (Losses)
Reclassified into Earnings
Net product revenues as reported$505,525 $5,572 $467,769 $(2,757)
Operating expenses as reported$382,032 $(1,379)$460,944 $5 
Derivatives Not Designated as Hedging InstrumentsGains (Losses) Recognized in EarningsGains (Losses) Recognized in Earnings
Operating expenses$1,292 $4,269 
As of March 31, 2022, the Company expects to reclassify unrealized gains of $7.6 million from Accumulated Other Comprehensive Income (Loss) (AOCI) to earnings as the forecasted revenues and operating expense transactions occur over the next twelve months. For additional discussion of balances in AOCI see Note 7 – Accumulated Other Comprehensive Income.

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BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
(6) DEBT
Convertible Notes
As of March 31, 2022, the Company had outstanding fixed-rate notes with varying maturities for an undiscounted aggregate principal amount of $1.1 billion (collectively the Notes). The Notes are senior subordinated convertible obligations, and interest is payable in arrears, semi-annually. The following table summarizes information regarding the Company’s convertible debt:
March 31,
2022
December 31,
2021
1.25% senior subordinated convertible notes due in May 2027 (the 2027 Notes)
$600,000 $600,000 
Unamortized discount net of deferred offering costs(10,465)(10,971)
2027 Notes, net589,535 589,029 
0.599% senior subordinated convertible notes due in August 2024 (the 2024 Notes)
495,000 495,000 
Unamortized discount net of deferred offering costs(4,474)(4,952)
2024 Notes, net490,526 490,048 
Total convertible debt, net$1,080,061 $1,079,077 
Fair value of fixed-rate convertible debt (1):
2027 Notes
$604,758 $625,122 
2024 Notes
497,223 521,082 
Total fair value of fixed-rate convertible debt$1,101,981 $1,146,204 
(1)    The fair value of the Company’s fixed-rate convertible debt is based on open-market trades and is classified as Level 1 in the fair value hierarchy. For additional discussion of fair value measurements, see 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.
Interest expense on the Company’s convertible debt consisted of the following: 
Three Months Ended March 31,
20222021
Coupon interest expense$2,616 $2,616 
Accretion of discount on convertible notes836 834 
Amortization of debt issuance costs148 148 
Total interest expense on convertible debt$3,600 $3,598 
See Note 10 - Debt included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for additional information related to the Company’s convertible debt.
Revolving Credit Facility
In October 2018, the Company entered into an unsecured revolving credit facility of up to $200.0 million which includes a letter of credit subfacility and a swingline loan subfacility. The credit facility is intended to finance ongoing working capital needs and for other general corporate purposes. In May 2021, the Company entered into an amendment agreement in respect of the credit facility, extending the maturity date from October 19, 2021 to May 28, 2024, among other changes. The amended credit facility contains financial covenants including a maximum leverage ratio and a minimum interest coverage ratio. As of March 31, 2022, there were no amounts outstanding under the credit facility and the Company and certain of its subsidiaries that serve as guarantors were in compliance with all covenants.

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BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
(7) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following tables summarize changes in the accumulated balances for each component of AOCI, including current-period other comprehensive income (loss) and reclassifications out of AOCI, for the periods presented.
Three Months Ended March 31, 2022
Unrealized Gains
(Losses) on Cash
Flow Hedges
Unrealized Gains
(Losses) on
Available for-Sale
Debt Securities
Total
AOCI balance at December 31, 2021$15,805 $(1,373)$14,432 
Other comprehensive income (loss) before
     reclassifications
(3,225)(10,274)(13,499)
Less: gain (loss) reclassified from AOCI4,193  4,193 
Tax effect 2,383 2,383 
Net current-period other comprehensive income (loss)(7,418)(7,891)(15,309)
AOCI balance at March 31, 2022$8,387 $(9,264)$(877)
Three Months Ended March 31, 2021
Unrealized Gains
(Losses) on Cash
Flow Hedges
Unrealized Gains
(Losses) on
Available for-Sale
Debt Securities
Total
AOCI balance at December 31, 2020$(20,028)$3,889 $(16,139)
Other comprehensive income (loss) before
     reclassifications
19,893 (1,945)17,948 
Less: gain (loss) reclassified from AOCI(2,752) (2,752)
Tax effect 443 443 
Net current-period other comprehensive income (loss)22,645 (1,502)21,143 
AOCI balance at March 31, 2021$2,617 $2,387 $5,004 
For additional discussion of reclassifications from AOCI see Note 5 – Derivative Instruments and Hedging Strategies.

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BIOMARIN PHARMACEUTICAL INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (continued)
(In thousands of U.S. Dollars, except per share amounts or as otherwise disclosed)
(8) REVENUE, CREDIT CONCENTRATIONS AND GEOGRAPHIC INFORMATION
The Company operates in one business segment, which primarily focuses on the development and commercialization of innovative therapies for people with serious and life-threatening rare diseases and medical conditions.
The following table disaggregates total Net Product Revenues by product.
Three Months Ended
March 31,
20222021
Net product revenues by product:
Vimizim$183,059 $158,298 
Naglazyme128,031 107,336 
Kuvan59,337 70,763 
Palynziq54,885 54,038 
Brineura36,173 27,325 
Voxzogo19,658  
Total net product revenues marketed by the Company481,143 417,760 
Aldurazyme net product revenues marketed by Sanofi24,382 50,009 
Total net product revenues505,525 467,769 
Royalty and other revenues13,834 18,261 
Total revenues$519,359 $486,030 
The Company considers there to be revenue concentration risks for regions where Net Product Revenues exceed 10% of consolidated Net Product Revenues. The concentration of the Company’s Net Product Revenues within the regions below may have a material adverse effect on the Company’s revenues and results of operations if sales in the respective regions experience difficulties. The table below disaggregates total Net Product Revenues by geographic region, which is based on patient location for Company's commercial products sold directly by the Company, except for Aldurazyme, which is sold exclusively by Sanofi worldwide.
Three Months Ended
March 31,
20222021
Europe$</