Biogen ended the year on a strong note with Tecfidera continuing
with its impressive performance. Fourth quarter EPS was $2.34, well
above the Zacks Consensus Estimate of $2.22 and 67.1% above the
year-ago earnings. Revenues increased 29% to $1.97 billion, beating
the Zacks Consensus Estimate of $1.93 billion. 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. We are also positive on Biogen acquiring
full control over Tysabri. Revenue estimates for both 2014 and 2015
are up Tecfidera should remain a key growth driver. Based on the
strong fundamentals and improving prospects, we are upgrading
Biogen to Outperform.
Biogen Idec Inc. is one of the world's leading biotechnology
companies. The company's main areas of focus include neurology,
immunology and hemophilia. Products such as Avonex (multiple
sclerosis - MS) and Tysabri (MS) currently drive the top line. The
company gained approval for its oral MS drug, Tecfidera, in the
U.S. in late Mar 2012. Other marketed products include Fumaderm
(severe psoriasis) and Fampyra (improvement of walking in MS
patients). Biogen has several candidates in different stages of
development in its pipeline including Plegridy (MS), daclizumab
(MS), Eloctate (hemophilia A) and Alprolix (hemophilia B).
Biogen also generates significant royalties from partnering
agreements with other pharmaceutical and biotechnology companies.
Biogen has collaborations with companies like Roche (Rituxan),
Acorda (Fampyra), Biovitrum (Eloctate and Alprolix) and AbbVie
(daclizumab) among others. In terms of infrastructure, Biogen has
substantial manufacturing, research and development expertise in
biologics, and strong international exposure for distribution in
Europe. This sizeable manufacturing capacity and research
capability allows the company to enter into collaborative
agreements with smaller biotechnology companies who are looking to
advance and commercialize product candidates. The company is based
in Weston, Mass. and has significant operations on both the east
and west coasts of the U.S.
Biogen generated total sales of $6.9 billion in 2013, up
2013 Product Revenue Break-Up
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