Stockwatch: BioMarin's Biggest Liabilities
This article was originally published in Scrip
Executive Summary
In an amalgamation of human resources jargon and accounting-speak, many companies describe their employees as their 'greatest asset'. In a similar but inverse metaphor, when many investors think of risk, they only think of the potential to lose money, rather than the chances of making excess positive returns. Despite losing only 13.6% of its value in the past two weeks (over which time admittedly the NASDAQ Biotech Index gained 4.5%), BioMarin Pharmaceutical, Inc. has demonstrated that a company's employees can also be its biggest liability.