Biogen 2Q Profit Climbs 34 pct, Avonex Sales Rise
From Associated Press (July 24, 2012)
WESTON, Mass. -- Biogen Idec Inc.'s second-quarter earnings climbed 34 percent, as sales growth from the multiple sclerosis treatment Avonex countered rising expenses for the drug developer and a slight decline from another treatment, Tysabri.
The Weston, Mass., company said Tuesday revenue from Avonex climbed 16 percent to $762.1 million in the quarter, and it also booked $19.7 million from the multiple sclerosis treatment Fampyra. Revenue from Tysabri, which also treats multiple sclerosis, fell slightly to $280.4 million.
Biogen focuses on treatments for neurodegenerative diseases, hemophilia and autoimmune disorders. Multiple sclerosis is a disease in which the immune system attacks healthy nerves. It can cause pain, numbness, slurred speech, impaired vision, muscle weakness, and neurological problems.
Overall, Biogen earned $386.8 million, or $1.61 per share, in the three months that ended June 30. That compares with earnings of $288 million, or $1.18 per share, in last year's quarter.
Adjusted earnings, which exclude one-time costs, were $1.82 per share. A 2 percent drop in the number of outstanding shares gave a small boost to per-share results in the recent quarter.
Revenue climbed 18 percent to $1.42 billion, from $1.21 billion last year.
The performance topped Wall Street expectations. Analysts surveyed by FactSet expected, on average, earnings of $1.57 per share, on $1.34 billion in revenue.
Biogen said its costs climbed 15 percent to $915.2 million, as research and development and selling, general and administrative expenses rose.
The company also said it now expects full-year adjusted earnings to be above $6.20 per share. That's up from a forecast in May that called for earnings above $6.15 per share.
Analysts expect, on average, earnings of $6.21 per share, with estimates ranging from $6.15 to $6.39.
In morning trading, Biogen shares slipped 41 cents to $138.82, after earlier rising as much as 2.4 percent. The stock has changed hands between $83.83 and $147.49 in the past 52 weeks.
Posted: July 2012