Biogen Idec ( BIIB ) reported first
quarter earnings per share of $1.96, well above the Zacks Consensus
Estimate of $1.57 and 41% above the year-ago earnings. First
quarter 2013 revenues increased 10% to $1.415 billion. Revenues
were well above the Zacks Consensus Estimate of $1.387 billion.
Avonex and Tysabri drove first quarter 2013 revenues. Earnings were
boosted by about 17 cents due to a lower tax rate.
Including one-time items, first quarter 2013 earnings increased
43% to $1.79 per share.
The Quarter in Detail
First quarter Tysabri revenues increased 9% to $312 million from
the year-ago period. Tysabri revenues increased 5.8% on a
sequential basis. Global in-market net revenues of Tysabri came in
at $456 million (up 15%) in the first quarter of 2013.
Tysabri global revenues consisted of US revenues of $257 million
and ROW (Rest of the World) revenues of $199 million. The
sequential improvement in Tysabri revenues is encouraging.
Meanwhile, Avonex, Biogen's lead multiple sclerosis (MS)
product, posted first quarter revenues of $746 million (up 13%). On
a sequential basis, Avonex revenues were down 0.9%.
Biogen has been working on driving Avonex revenues. The company
launched Avonex Pen in the US last year. Avonex Pen helps improve
convenient administration. The rollout of Avonex Pen in the EU and
US should increase patient and physician interest in Avonex.
Rituxan revenues declined 7% to $265 million in the first
quarter. Biogen's share of Rituxan revenues was affected by about
$42 million due to damages awarded against Genentech in its dispute
with Hoechst GmbH.
Biogen raised its guidance for 2013. The company expects
earnings in the range of $7.80 - $7.90 per share on revenue growth
of 16% - 18%. The company was previously expecting earnings in the
range of $7.15 - $7.25 per share on 10% revenue growth. We expect
significant upward revisions in earnings estimates as the Zacks
Consensus Estimate for 2013 currently stands at $7.67 per share,
well below the company's revised guidance range.
The company maintained its R&D (22% to 23% of total
revenues) and SG&A guidance (24% to 26% of total revenues).
Biogen started 2013 on a strong note with better-than-expected
earnings and revenues. The company has shown significant progress
with its pipeline - Tecfidera's approval is a major boost for the
stock. We are also positive on Biogen's gaining full control over
Tysabri. Key products, Avonex and Tysabri, should continue
contributing significantly to sales. Tecfidera should help drive
long-term growth. Biogen has several development and regulatory
catalysts coming up in the next few quarters. With Tecfidera
approved, we expect investor focus to remain on the product
Biogen currently carries a Zacks Rank #3 (Hold). Companies that
currently look well-positioned include Athersys,
Inc. ( ATHX ),
Cleveland BioLabs, Inc. ( CBLI ) and
Osiris Therapeutics ( OSIR ). All three are
Zacks Rank #1 (Strong Buy) stocks.ATHERSYS INC (ATHX): Free Stock Analysis ReportBIOGEN IDEC INC (BIIB): Free Stock Analysis
ReportCLEVELAND BIOLB (CBLI): Free Stock Analysis
ReportOSIRIS THERAPTC (OSIR): Free Stock Analysis
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