) reported fourth quarter earnings per share of $1.40, missing
the Zacks Consensus Estimate of $1.46 and 6.7% below the year-ago
earnings. Fourth quarter 2012 revenues increased 6.9% to $1.418
billion. Revenues were well above the Zacks Consensus Estimate of
$1.383 billion. Despite posting higher revenues, higher expenses
led to the year-over-year decline in earnings.
Moreover, results were adversely affected by a correction in
the accounting for taxes on capitalized interest at Biogen's
Denmark facility. The correction increased fourth quarter 2012
tax expense by $29 million and reduced earnings by 12 cents.
Including one-time items, fourth quarter 2012 earnings
increased 1% to $1.23 per share.
Full-year earnings increased 11.1% to $6.50 per share, 4 cents
below the Zacks Consensus Estimate. Meanwhile, revenues increased
9% to $5.516 billion, above the Zacks Consensus Estimate of
The Quarter in Detail
Fourth quarter Tysabri revenues increased 10% to $295 million
from the year-ago period. Tysabri revenues increased 7.3% on a
sequential basis. Global in-market net revenues of Tysabri, which
is partnered with
), came in at $433 million (up 14%) in the fourth quarter of
Tysabri global revenues consisted of US revenues of $243
million and ROW (Rest of the World) revenues of $190 million. The
sequential improvement in Tysabri revenues is encouraging.
Meanwhile, Avonex, Biogen's lead multiple sclerosis (MS)
product, posted fourth quarter revenues of $753 million (up 7%).
On a sequential basis, Avonex revenues were up 2.3%.
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
Rituxan revenues increased 9% to $281 million in the fourth
Biogen provided guidance for 2013. The company expects
earnings in the range of $7.15 - $7.25 per share on 10% revenue
growth. While the company expects to spend 22% to 23% of total
revenues on R&D, SG&A spend is expected to be about 24%
to 26% of total revenues.
Biogen currently carries a Zacks Rank #3 (Hold). We note that
both Avonex and Tysabri are facing additional competition in the
) Gilenya which was launched in early Oct 2010. Another recent
Biogen is looking to bring Tecfidera (BG-12), its oral MS
candidate, to market this year. The company reported impressive
data on the candidate, which is currently under US and EU review.
A response from the FDA should be out by March.
Tecfidera could become a leader in the oral MS market once
launched. The company is seeking approval in Australia, Canada
and Switzerland as well.
While Novartis is also a Zacks Rank #3 stock, both Elan and
Sanofi are Zacks Rank #2 (Buy) stocks.
BIOGEN IDEC INC (BIIB): Free Stock Analysis
ELAN CP PLC ADR (ELN): Free Stock Analysis
NOVARTIS AG-ADR (NVS): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
To read this article on Zacks.com click here.