) reported first quarter 2014 earnings per share of $2.45
(including the impact of stock-based compensation expense),
missing the Zacks Consensus Estimate of $2.58 but surpassing the
year-ago earnings by 25%. The company said that first quarter
2014 earnings were impacted by about 35 cents due to its new
Alzheimer's disease collaboration agreement with Eisai.
First quarter 2014 revenues increased 51% to $2.1 billion,
well above the Zacks Consensus Estimate of $1.9 billion. Newly
launched multiple sclerosis (MS) drug, Tecfidera, drove
Including one-time items, first quarter 2014 earnings
increased 12.8% to $2.02 per share.
The Quarter in Detail
First quarter Tysabri revenues increased 41% to $441 million
from the year-ago period. Biogen is now booking 100% of Tysabri
revenues following its acquisition of Elan's rights in Tysabri.
Global in-market net revenues of Tysabri declined 3%. We believe
global in-market net revenues were impacted by the switching of
patients to Tecfidera as well as oral competition in the EU.
Meanwhile, Avonex, Biogen's lead MS product, posted first
quarter revenues of $761 million, up 2% from the year-ago
Rituxan and Gazyva revenues were $297 million in the first
Tecfidera, the latest offering from Biogen's MS portfolio,
continues to impress with sales coming in at $506 million - this
included U.S. sales of $460 million and EU sales of $46 million.
First quarter Tecfidera sales were well above fourth quarter
sales of $398 million. Tecfidera is the leading oral MS therapy
in the U.S. Biogen had launched Tecfidera in early Apr 2013 in
Biogen upped its guidance for 2014. The company now expects
earnings in the range of $11.35 - $11.45 per share on revenue
growth of 26% - 28%. Earlier, Biogen had guided towards earnings
of $11.00 - $11.20 per share on revenue growth of 22% - 25%. The
Zacks Consensus Estimate of $11.29 per share is below the
company's guidance range. The Zacks Consensus Estimate for
revenue growth is currently towards the lower end of the guidance
range at 22.5%.
The company expects to spend 20% - 22% of total revenues and
22% - 23% of total revenues on R&D and SG&A,
Biogen's first quarter results were mixed with the company
beating on the top line easily but missing on earnings. We remain
impressed with Tecfidera's performance. Tecfidera was launched in
the EU recently and is already off to a strong start there.
Meanwhile, performance in the U.S. remains solid.
Biogen remains poised for strong growth. This year, the
company could launch three products: Eloctate and Alprolix
(approved) for hemophilia patients and Plegridy for MS.
Biogen is a Zacks Rank #1 (Strong Buy) stock. Some equally
attractive stocks in the biotech sector include
Regeneron Pharmaceuticals, Inc.
). Another stock that warrants a look is
), which carries a Zacks Rank #2 (Buy).
BIOGEN IDEC INC (BIIB): Free Stock Analysis
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