On Sep 18, we upgraded biotech company,
) to Outperform based on its strong performance in the first half
of 2013, raised outlook and improving prospects.
Biogen, which focuses on the development, manufacture and
marketing of therapies for the treatment of multiple sclerosis
and other autoimmune disorders, neurodegenerative diseases and
hemophilia, became a Zacks #1 Rank (Strong Buy) stock shortly
after reporting impressive second quarter results.
Why the Upgrade?
Second quarter 2013 earnings came in at $2.30 per share
(excluding the impact of stock-based compensation expense), well
above the Zacks Consensus Estimate of $1.83 and 26.4% above the
year-ago earnings. Revenues increased 21% from the year-ago
period to $1.7 billion. Over the past four quarters, Biogen has
delivered an average surprise of 15.52%.
Following the release of second quarter results, the Zacks
Consensus Estimate for 2013 has gone up 9.6% to $8.77 per share.
Moreover, the Zacks Consensus Estimate for 2014 has shot up
significantly (up 16.4% to $11.51 per share).
What is the cause for the strong positive bias on the company?
Biogen started 2013 on a strong note with the momentum continuing
in the second quarter. Second quarter results were primarily
driven by the strong performance of Biogen's new product,
Tecfidera. We believe Tecfidera has the potential to become a
leader in the oral multiple sclerosis market.
We are also positive on Biogen's gaining full control over
Tysabri, which should continue contributing significantly to
sales along with Avonex. Biogen has several development and
regulatory catalysts coming up in the next few quarters. Approval
for its hemophilia candidates, Alprolix and Eloctate, could lead
to their launch in the first quarter and second quarter of 2014,
Other Stocks to Consider
Besides Biogen, other stocks in the biopharma sector that are
currently performing well include
Gilead Sciences, Inc.
Anthera Pharmaceuticals, Inc.
). While Gilead is a Zacks #1 Rank stock, Anthera and Athersys
are Zacks Rank #2 (Buy) stocks.
ANTHERA PHARMA (ANTH): Free Stock Analysis
ATHERSYS INC (ATHX): Free Stock Analysis
BIOGEN IDEC INC (BIIB): Free Stock Analysis
GILEAD SCIENCES (GILD): Free Stock Analysis
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