) reported fourth quarter earnings per share of $2.34 (including
the impact of stock-based compensation expense), well above the
Zacks Consensus Estimate of $2.22 and 67.1% above the year-ago
Fourth quarter 2013 revenues increased 29% to $1.97 billion,
above the Zacks Consensus Estimate of $1.93 billion. Newly
launched multiple sclerosis (MS) drug, Tecfidera, drove fourth
Including one-time items, fourth quarter 2013 earnings
increased 56.1% to $1.92 per share.
Full-year earnings grew 37.2% to $8.93 per share, beating the
Zacks Consensus Estimate of $8.81 per share. Revenues increased
25.7% to $6.93 billion, above the Zacks Consensus Estimate of
The Quarter in Detail
Fourth quarter Tysabri revenues increased 45% to $427 million
from the year-ago period. Biogen is now booking 100% of Tysabri
revenues following its acquisition of Elan's rights in Tysabri.
Global in-market net revenues of Tysabri declined 1%. We believe
global in-market net revenues were impacted by the switching of
patients to Tecfidera as well as oral competition in the EU.
Biogen has yet to record a benefit of about $95 million
related to the pending settlement with the Italian National
Meanwhile, Avonex, Biogen's lead MS product, posted fourth
quarter revenues of $751 million. While revenues remained
unchanged from the year-ago period, they improved 2.5%
sequentially. Avonex revenues in ex-U.S. markets were $277
Rituxan and Gazyva revenues declined 4% to $269 million in the
Tecfidera, the latest offering from Biogen's MS portfolio,
continues to impress with sales coming in at $398 million - this
includes patient demand of approximately $348 million and
inventory stocking of approximately $42 million. Fourth quarter
Tecfidera sales were well above third quarter sales of $286
million. Tecfidera is the leading oral MS therapy in the U.S.
Biogen had launched Tecfidera in early Apr 2013 in the U.S.
Mixed Guidance for 2014
Biogen provided guidance for 2014. The company expects
earnings in the range of $11.00 - $11.20 per share on revenue
growth of 22% - 25%. The Zacks Consensus Estimate of $11.79 per
share is far above the company's guidance range. However, revenue
guidance is above the current expectations of revenue growth of
The company expects to spend 20% - 22% of total revenues and
22% - 23% of total revenues on R&D and SG&A,
Biogen ended the year on a strong note with Tecfidera
continuing with its impressive performance. However, the
company's guidance for 2014 was mixed with earnings guidance
falling well short of expectations and revenue guidance coming
above. This year, the company could launch three products:
Eloctate and Alprolix for hemophilia patients and Plegridy for
MS. Moreover, Tecfidera should gain EU approval shortly.
Biogen is a Zacks Rank #2 (Buy) stock. Some better-ranked
stocks in the health care sector include
). All three carry a Zacks Rank #1 (Strong Buy).
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