Biogen reported second quarter 2014 EPS of $3.48, well above the
Zacks Consensus Estimate of $2.80 and the year-ago earnings of
$2.29. Revenues increased 40% to $2.4 billion, well above the Zacks
Consensus Estimate of $2.1 billion. Tecfidera continues to impress.
Biogen raised its guidance again this year and both earnings and
revenue estimates are up significantly. Biogen remains in a strong
position in the MS market. While Tecfidera should continue
performing well, Tysabri and Avonex should remain strong
contributors to the top line. We expect 2014 to be catalyst rich
for Biogen with several data readouts expected and maintain an
Outperform recommendation on the stock.
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 Tecfidera (multiple
sclerosis MS), Avonex (MS) and Tysabri (MS) currently drive the top
line. Other approved/marketed products include Fumaderm (severe
psoriasis), Fampyra (improvement of walking in MS patients),
Alprolix (hemophilia B), Eloctate (hemophilia A) and Plegridy (MS).
Biogen has several candidates in different stages of development in
its pipeline including daclizumab (MS).
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, MA 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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