Is BioMarin up for grabs? The Novato company develops and markets drugs for the underserved genetic disorder market and recently posted eye-popping first quarter numbers. Revenues from its Naglazyme product were up 50 percent from the previous quarter, and another product was up 37 percent. Quarterly revenues were up 165 percent, and the 11-year-old company released guidance that points to revenues rising 122 percent for the year. The numbers ran counter to Wall Street analysts, who were looking for a nickel a share loss. Instead, the company showed net income of $1.7 million after losing $9.3 million in the last quarter of 2007.
The 500-employee company has stuck a chord with investors, who are now on the lookout for a large pharmaceutical company to come in and swoop up BioMarin. After the company posted its first quarter results, trading volume jumped to five times the normal level. Even more telling, however, were the numbers of futures moves that hit the market. More than 9,100 investors bought contracts looking for the stock to climb based on the assumption that a sale is in the offing.
Meanwhile, BioMarin, which remains mum on any moves being planned by potential suitors, has made a move of its own. Seeking to cash in on the pool of biotechnology talent in South San Francisco (think Genetech, Raven Biotechnologies and a host of others), the company has opened a satellite office that will eventually have as many a 50 employees.
Buck Institute gets some bucks
The Buck Institute is shopping for financing to go along with the $20.5 million grant for stem cell work that the Independent Citizens’ Oversight Committee dropped on the research center. The grant demonstrates the high regard researchers have for the Buck Institute, which specializes in studying the aging process. It’s long been hoped the Institute would draw like-minded companies and foundations to the North Bay (making it a regional research center). Thus far, that hasn’t happened. But if the Institute is successful in raising $20.5 million on its own, it will be able to construct a building to house its stem cell research.
The Institute is currently exploring finance options to raise the capital needed to match the grant and begin construction of the 66,000-square-foot facility, which is slated for completion by July 2010. Buck managers are exploring joint venturing with an equity partner, lining up venture donations and even shopping for a commercial loan. The Institute is also hoping to attract other research organizations that would be willing to either pay to store their stem cells at the Buck or lease currently unused work areas.
Harvesting buyouts
There’s a new private equity fund in San Anselmo that’s just as interested in vineyard yields as it is in investment yields. Actually, for Vinum Capital Partners, they’re directly connected. Anybody who’s paid attention to the business end of the Wine Country lately knows there’s been plenty of mergers and acquisitions as large conglomerates and multinational liquor companies have made the Napa and Sonoma valleys their personal acquisition playground.
Vinum, an investment firm made up of Wine Country veterans from Beringer, Brown-Foreman, Fosters Wine Estates, Golden State Vintners and Ravenswood, is following a fairly straightforward investment game plan: Buy at least seven (and as many as 10) small wineries that produce 10,000 to 150,000 cases a year; harvest in-house expertise; add a hint of operational discipline along with distributional know-how; and age until the brand is busting 300,000 cases a year. Then sell off the winery.
The equity firm is hoping to raise $250 million and plans on buying the wineries for $5 million to $50 million each—though for the right winery, Vinum will go north of the $50 million mark. Vinum is counting on survey by Napa’s Scion Advisors and Silicon Valley Bank that says 51 percent of family-owned wineries in the two valleys will be looking to sell within the next decade.
Grow your own…business
The tiny town of Fairfax enjoys an image in Marin that’s at one with the cosmos. It’s equal parts charming burg, throwback to the Summer of Love and mountain bike haven. It’s also a decidedly eclectic place, where opinions are easy to come by and “progressive” is the word of the day.
So when the town hired business consultant Pamela Gibson to explore ways to revitalize its business community, it was sure to spawn lots of creative ideas on how best to bring a shine to the downtown. Gibson, who won an award from the League of California Cities for her work in rebranding the city of Sonoma, wants Fairfax business owners to focus on nurturing their businesses. She thinks the town might get some mileage out of capitalizing on its image as a green community, ripping off Kermit the Frog’s line, “It’s not easy being green.”
Frankly, that’s a bit too tame for Fairfax. At an “economic summit” at the Fairfax Women’s Club, several more colorful taglines were suggested. Garry Graham, a lawyer who runs the outstanding pub and music venue, 19 Broadway, said he’d heard his city referred to as “Bolinas with trees,” while town councilman Lew Tremaine opined he preferred that handle to “Mayberry on Acid.” Barney Fife tripping with a blotter of sunshine?
Mayor Mary Ann Maggiore told those gathered for the exchange of ideas, “We can’t hire a PR agency to tell people we rock—but we do rock.”
Maggiore has explored using the long vacant Albertson’s market as a Marin Rock and Roll Hall of Fame. And with such music luminaries as Janis Joplin, the Grateful Dead, Van Morrison and Carlos Santana (to name but a few) having called Marin home, there’d be no trouble filling the place with memorabilia. But would it be draw for Fairfax businesses?
To me, the idea sings.
