Why Biogen’s Q2 Was So Great

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When Biogen Inc. (NASDAQ: BIIB) released its second-quarter financial results before the markets opened on Tuesday, the biotech giant said that it had $9.15 in earnings per share (EPS) and $3.60 billion in revenue. The consensus estimates had called for $7.53 in EPS and $3.47 billion in revenue, and in the same period of last year, $5.80 in EPS and $3.36 billion in revenue were posted.

Multiple sclerosis revenues in the latest period, including $183 million in royalties on the sales of Ocrevus, increased 3% year over year to $2.4 billion.

At the same time, revenue growth was driven in part by the continued global launch of Spinraza, which contributed $488 million in revenues.

Biosimilars revenues, primarily driven by Imraldi, increased to $184 million compared to $127 million in the second quarter of 2018.

Looking ahead to the 2019 full year, the company expects to see EPS in the range of $31.50 to $32.30 and revenue between $14.0 billion and $14.2 billion in revenue. Consensus estimates call for $29.70 in EPS and $13.95 billion in revenue for the year.

Michel Vounatsos, Biogen’s CEO, commented:

Biogen delivered solid performance globally in the second quarter, and we believe we are on track for a strong year. We added four new programs to our pipeline this quarter, as we continued to diversify and build depth within neuroscience and pursue therapeutic adjacencies. Specifically, the acquisition of Nightstar Therapeutics has provided us with two potentially first-in-class mid- to late-stage gene therapy programs in specialty ophthalmology, and we initiated two new studies in our priority areas of multiple sclerosis and amyotrophic lateral sclerosis. We continued to allocate capital, and we remain focused on investing in the areas we believe have the highest potential return for shareholders.

Shares of Biogen traded up about 5% to $244.14 Tuesday, in a 52-week range of $216.12 to $388.67. The consensus price target is $253.00.


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