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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Biomarin Pharmaceutical Inc · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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Our market risks during the six months ended June 30, 2026 have not materially changed from those discussed in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025, except as described below.
Interest Rate Market Risk
Our exposure to market risk for changes in interest rates relates primarily to our cash, cash equivalents, investments, and our variable-rate term loans. The interest rate risk related to our variable-rate term loans arises from these bearing interest based on Secured Overnight Financing Rate (SOFR) or an alternate base rate plus a margin. As of June 30, 2026, our outstanding debt included $2.8 billion of variable-rate debt on Term Facilities. Assuming a 100 basis point increase in the applicable interest rates, annual interest expense on existing variable-rate debt would be expected to increase by approximately $28.0 million. The remaining outstanding debt as of June 30, 2026, was fixed-rate debt and is not exposed to risk related to changes in interest rates.
There were no borrowings under the 2026 Revolving Facility as of June 30, 2026.