Biogen Idec Inc. (BIIB): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
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.

Overview:

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 26%.

2013 Product Revenue Break-Up


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: BIIB , MS

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