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Biogen raises outlook on new MS drug

Wednesday, April 23 14:31:37

Biogen Idec today raised its full-year earnings and revenue forecasts as first-quarter sales of its new Tecfidera multiple sclerosis drug extended a run of eclipsing Wall Street sales expectations.

Tecfidera racked up sales of $506 million for the quarter, easily topping analysts' expectations of about $440 million and the previous quarter's sales of $398 million.

The oral medicine, which was approved in the United States in March 2013, had been on track to become the drug to reach $1 billion in sales in the shortest time. But that pharmaceutical industry record was shattered on Tuesday, when Gildead Sciences Inc said its Sovaldi hepatitis C treatment logged more than $2 billion in sales in its first full quarter on the market.

Based on the strong performance of its MS drugs, Biogen raised its full-year forecast and now expects revenue growth of 26 percent to 28 percent, up from a prior range of 22 percent to 25 percent.

The U.S. biotechnology company said it expected 2014 earnings, excluding items, of $11.35 to $11.45 per share, compared with a prior outlook of $11.00 to $11.20. Analysts on average are looking for a profit of $11.32 per share, according to Thomson Reuters I/B/E/S.

Shares of Biogen were up 1.1 percent at $309.66 in premarket trading.

"The raised guidance is a testament to the U.S. beat on Tecfidera sales and signals confidence in both the hemophilia launch as well as the Tecfidera launch in Europe," RBC Capital Markets analyst Michael Yee said.

Biogen plans to begin selling Alprolix, its recently approved long-acting treatment for hemophilia B, in the United States in early May. The company said last week it would price Alprolix on a par with older, less-convenient treatments, which should help it get off to a strong start.

The company reported net income of $479.9 million, or $2.02 per share for the quarter, compared with $426.7 million, or $1.79 per share, a year earlier.

Excluding special items, Biogen said it earned $2.47 per share, missing the analysts' average estimate of $2.55. But the company said its earnings were reduced by about 35 cents a share due to a $118 million expense from a collaboration with Japan's Eisai Co on development of Alzheimer's disease treatments.

Without that expense, "the (earnings) number could have been as high as $2.82, which would have crushed expectations," Yee said.

Revenue jumped 51 percent to $2.1 billion, edging past Wall Street estimates of $1.99 billion.

Biogen said $46 million of the Tecfidera sales came from outside the United States. The drug began selling in Germany in February, and the company said it planned to introduce the medicine in additional European countries in the coming months, with reimbursement agreements already secured in Norway and Scotland.

"We're encouraged by the signs from Germany," Tony Kingsley, Biogen's head of global commercial operations, told analysts and investors on a conference call. (Reuters)