Biogen Takes Breather on Earnings and MS Drug Sales

Health and Healthcare

Published: October 22, 2014 9:05 am

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.

ALSO READ: 5 Beaten Down Biotech Stocks With Hugh Upside Potential

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.

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps