Why BioMarin Pharmaceutical Is Surging

BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) jumped over 14 percent on Friday, as a buyout rumor surfaced just ahead of an apparently routine conference call with analysts concerning its developmental drug programs.

Separately, Deutsche Bank's Robyn Karnauskas published a note on Friday raising her target 55 percent to $140.

BioMarin changed hands recently at $129.51, up $13.96. The stock is up 45 percent year to date.

Ben Harrington, a former business editor at the Daily Telegraph who now writes for the blog Betaville, cited unnamed sources on Thursday claiming that Ireland-based Shire PLC (ADR) (NASDAQ: SHPG) was "weighing a $65 billion merger with BioMarin."

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The Novato, California-based BioMarin has a market capitalization of about $20.9 billion versus Shire's $40 billion cap.

Karnauskas' note focused on BioMarin's drug development, and didn't comment on Harrington's report. But she put the company's potential take-out value at $170 a share.

Data on several development programs will act as catalysts on the stock in the upcoming year, during which Karnauskas expects the shares will be volatile.

"Not everything in the pipeline needs to work for the stock to work, or to command and M&A premium," said Karnauskas, who reiterated a Buy rating.

A BioMarin conference call with analysts was slated to start at 10 a.m. Friday.