Biogen Takes Breather on Earnings and MS Drug Sales
Biogen Idec reported better-than-expected third-quarter results before the market opened Wednesday.
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Biogen Idec Inc. (NASDAQ: BIIB) reported its third-quarter results before the market opened Wednesday as $3.80 in earnings per share and $2.5 billion in revenue. That was against Thomson Reuters has consensus estimates of $3.46 in earnings per share and $2.48 billion in revenue. In the third-quarter of the previous year, it had earnings of $2.35 per share and revenue of $1.83 billion.
The company updated its guidance for the 2014 full year. Revenue growth is expected to be 38% to 41% compared to 2013, and earnings per share are expected to be in the range of $13.45 to $13.55. These increases are due to updated business development expectations. Thomson Reuters has full-year earnings estimates of $13.10 per share and $9.69 billion in revenue.
Net revenue for the third quarter was $856 million, up roughly 76% from the same period of the previous year of $487 million.
A few performance highlights from third-quarter drug sales:
- Tecfidera revenues were $787 million, consisting of $638 million in U.S. sales and $149 million in sales outside the United States.
- Interferon revenues, including Avonex and Plegridy, were $745 million, consisting of $482 million in U.S. sales and $263 million in sales outside the United States.
- Tysabri revenues were $501 million, consisting of $275 million in U.S. sales and $226 million in sales outside the United States.
- Net revenues relating to Rituxan and Gazyvz from Biogen’s unconsolidated joint business arrangement were $291 million.
- Alprolix revenues were $25 million and Eloctatetm revenues were $22 million.
CEO George A. Scangos Ph.D. said:
We introduced innovative therapies for MS and hemophilia and began to launch them in markets worldwide. We also launched TECFIDERA in several European countries, furthering its position as a leading oral MS therapy.
Bank of America initiated coverage on Biogen with a Buy rating and price target of $371.00 on October 1.
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Shares of Biogen closed Tuesday’s trading up almost 5% to $326.77. Following the earnings announcement, the reaction in the premarket was negative and shares were down over 2.5% at $318.00. Despite making earnings, shares appear to be down after sales of one of its MS drugs failed to impress investors. The shares have a consensus analyst price target of $13.95 and a 52-week range of $9.55 to $14.15. The company has a market cap of $15 billion.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
