Biogen Q1 Adj. Profit Tops View, But Revenues Miss; Trims 2015 Outlook

(RTTNews) - Global biotechnology firm Biogen, Inc. (BIIB), known earlier as Biogen Idec, reported Friday a profit for the second quarter that grew 30 percent from last year, reflecting lower charges and revenue growth amid increased sales of multiple sclerosis drug Tecfidera.

Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates, as Tecfidera sales growth began to slow. The company also trimmed its earnings and revenue growth guidance for the full-year 2015.

The Weston, Massachusetts-based company reported net income attributable to Biogen of $927.28 million or $3.93 per share for the second quarter, higher than $714.51 million or $3.01 per share in the prior-year quarter.

Results for the latest quarter include net charges of $0.29 per share, while the year-ago quarter included $0.48 per share net charges.

Excluding items, adjusted net income for the quarter was $994.8 million or $4.22 per share, compared to $829.1 million or $3.49 per share in the year-ago quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $4.10 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 7 percent to $2.59 billion from $2.42 billion in the same quarter last year, but missed seventeen Wall Street analysts' consensus estimate of $2.71 billion.

The company noted that foreign exchange, offset by hedging, weakened total revenues by about $79 million.

Product revenues for the quarter increased to $2.20 billion from $2.06 billion, and revenue from unconsolidated joint ventures for cancer drug Rituxan and and Gazyva grew to $337.51 million from last year's $303.30 million. Royalties revenues declined to $8.58 million from $40.34 million a year ago.

"Biogen remains focused on improving the lives of people living with complex diseases. Tecfidera, which is now the most prescribed oral MS therapy globally, is experiencing moderated patient growth following rapid initial uptake. The launch of Plegridy is expanding into new markets, and Tysabri continues to add new patients requiring higher efficacy," CEO George Scangos said.

Multiple sclerosis drug Tecfidera sales totaled $883.3 million, higher than $700.4 million last year. It is now the most prescribed oral MS therapy globally, but is now experiencing moderated patient growth following rapid initial uptake.

Another multiple sclerosis drug Tysabri sales declined to $463.1 million from $533.4 million a year ago, and Avonex sales decreased to $615.2 million from $773.8 million last year.

Psoriasis drug Fumaderm sales decreased to $12.7 million from last year's $16.0 million, and multiple sclerosis drug Fampyra sales edged down to $21.1 million from $22.3 million last year.

Sales for Plegridy, approved in the US and EU for Multiple Sclerosis, totaled $74.5 million. Sales for Eloctate, launched in the US for Hemophilia A, was $74.3 million, and sales for Hemophilia B therapy Alprolix totaled $54.4 million, sharply higher than $10.4 million last year.

Looking ahead to fiscal 2015, the company trimmed its adjusted earnings guidance to a range of $15.50 to $15.95 per share from its prior forecast range. It also lowered revenue growth projection to about 6 to 8 percent, largely on revised expectations for the growth of Tecfidera.

"The Company also continues to invest in the science that is core to our future and we are continuing to advance our pipeline in areas where patients have limited or no treatment options. We are excited to report we are now actively recruiting for two global Phase 3 studies of aducanumab in patients with early Alzheimer's disease," Scangos added.

BIIB closed Thursday's regular trading session at $385.05, down $9.12 on a volume of 2.59 million shares. In the past 52-week period, the stock has been trading in a range of $290.85 to $480.18.