Top Biotech Stock News: Biogen’s Q3 Earnings Top Estimates

Biogen Idec (BIIB) reported third quarter 2014 earnings per share of $3.79 (including the impact of stock-based compensation expense), way above the Consensus Estimate of $3.22 and the year-ago earnings of $2.34 per share. Third quarter 2014 revenues increased 37% to $2.5 billion, topping the Consensus Estimate of $2.4 billion. Including one-time items, third quarter 2014 earnings increased 77% to $3.62 per share.

Third quarter Tysabri revenues increased 25% to $501 million (U.S. – $275 million, ex-U.S. – $226 million) from the year-ago period. Biogen is booking 100% of Tysabri revenues following its acquisition of Elan’s rights in Tysabri.

Combined interferon revenues (Avonex and newly launched Plegridy), in the third quarter were $745 million (U.S. – $482 million, ex-U.S. – $263 million). Avonex revenues increased 1.1% to $741.8 million. Plegridy contributed $3.4 million to third quarter revenues.

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Biogen upped its earnings guidance for 2014 yet again. The company now expects earnings in the range of $13.45 – $13.55 per share on revenue growth of 38% – 41%. Earlier, Biogen had guided towards earnings of $12.90 – $13.10 per share on revenue growth of 38% – 41%. The Consensus Estimate of $12.66 per share is below the company’s guidance range.

The Consensus Estimate for revenue growth is within the guidance range at 39.4%. The significantly higher guidance reflects the continued strong performance of Tecfidera and updated expectations. The company continues to expect R&D spend in the range of 20% – 21% of total revenues. SG&A guidance also remains unchanged at 22% – 23% of total revenues.

Biotech Financial News

Biogen’s third quarter earnings were way above expectations. Tecfidera continues to perform well in the U.S. and EU where it was launched recently. Biogen, which launched several new products in the last few months, remains poised for strong growth.

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