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Biogen (BIIB) Beats on Q3 Earnings; Tecfidera Propels Sales
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Biotech company Biogen Inc.’s (BIIB - Free Report) shares were up more than 2% in pre-market trading, with the company surpassing earnings as well as sales expectations.
The company reported third-quarter 2016 earnings per share of $5.19, beating the Zacks Consensus Estimate of $4.99 by 4% and 16% higher than the year-ago earnings.
Sales came in at $2.96 billion, increasing 6% from the year-ago period and surpassing the Zacks Consensus Estimate of $2.90 billion by 2.1%. Currency negatively impacted revenues by $54 million. Top-line growth was driven by the solid performance of Biogen’s multiple sclerosis business.
Quarter in Detail
Oral multiple sclerosis (MS) drug Tecfidera, which grew 10% from the year-ago period to $1.03 billion, recorded a 5% sequential improvement in revenues. This included U.S. sales of $845.1 million and ex-U.S. sales of $188.6 million.
Revenues reflected a $40 million to $50 million benefit from an inventory rebalancing in the channel. However, outside U.S. sales decreased sequentially primarily due to parallel trade dynamics.
Third-quarter Tysabri revenues increased 7% to $515 million (U.S. $301.1 million, ex-U.S. $214.4 million) from the year-ago period. Tysabri’s sales also grew 4% sequentially
Combined interferon revenues (Avonex and Plegridy), in the third quarter, were $708 million (U.S. $505.7 million, ex-U.S. $202.6 million), down 10% from the year-ago period and 3% sequentially. Avonex revenues declined 15% from the year-ago period to $580 million.
Plegridy contributed $128 million to third-quarter 2016 revenues, up 28% year over year and 4% sequentially.
Zinbryta, launched in collaboration with AbbVie Inc. (ABBV - Free Report) in August, contributed $2 million to revenues in the quarter.
Alprolix and Eloctate, Biogen’s hemophilia treatments, recorded revenues of $132 million and $85 million, respectively, both showing sequential growth of 6%.
In the quarter, Biogen recorded biosimilar revenues of $31 million compared with $15 million in the second quarter. It launched biosimilar versions of Johnson & Johnson (JNJ - Free Report) and Amgen Inc.’s (AMGN - Free Report) blockbuster drugs, Remicade and Enbrel, respectively, in Europe.
Anti-CD20 revenues declined 6% from the year-ago period to $318 million in the third quarter.
R&D spend declined 2% in the reported quarter to $529 million while SG&A spend came in at $461 million, 4% higher year over year.
In the quarter, the company repurchased shares worth $349 million.
2016 Outlook
The company did not provide any update regarding its previously issued full-year outlook. At the second quarter conference call, Biogen said it expects earnings of $19.70 to $20.00 per share on revenues of $11.2 billion to $11.4 billion in 2016. Guidance includes contribution from the hemophilia business, which Biogen expects to spin-off in early 2017.
Biogen’s third-quarter results were impressive with the company surpassing earnings expectations by a fairly decent margin. The stock, which has been under pressure on concerns regarding a slowdown in Tecfidera’s growth rate as well as overall concerns regarding pricing in the biotech sector, saw its key MS drugs Tecfidera and Tysabrirecording a sequential improvement. Investors should be cheered by this. The hemophilia franchise also performed well.
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Biogen (BIIB) Beats on Q3 Earnings; Tecfidera Propels Sales
Biotech company Biogen Inc.’s (BIIB - Free Report) shares were up more than 2% in pre-market trading, with the company surpassing earnings as well as sales expectations.
The company reported third-quarter 2016 earnings per share of $5.19, beating the Zacks Consensus Estimate of $4.99 by 4% and 16% higher than the year-ago earnings.
Sales came in at $2.96 billion, increasing 6% from the year-ago period and surpassing the Zacks Consensus Estimate of $2.90 billion by 2.1%. Currency negatively impacted revenues by $54 million. Top-line growth was driven by the solid performance of Biogen’s multiple sclerosis business.
Quarter in Detail
Oral multiple sclerosis (MS) drug Tecfidera, which grew 10% from the year-ago period to $1.03 billion, recorded a 5% sequential improvement in revenues. This included U.S. sales of $845.1 million and ex-U.S. sales of $188.6 million.
Revenues reflected a $40 million to $50 million benefit from an inventory rebalancing in the channel. However, outside U.S. sales decreased sequentially primarily due to parallel trade dynamics.
Third-quarter Tysabri revenues increased 7% to $515 million (U.S. $301.1 million, ex-U.S. $214.4 million) from the year-ago period. Tysabri’s sales also grew 4% sequentially
Combined interferon revenues (Avonex and Plegridy), in the third quarter, were $708 million (U.S. $505.7 million, ex-U.S. $202.6 million), down 10% from the year-ago period and 3% sequentially. Avonex revenues declined 15% from the year-ago period to $580 million.
Plegridy contributed $128 million to third-quarter 2016 revenues, up 28% year over year and 4% sequentially.
Zinbryta, launched in collaboration with AbbVie Inc. (ABBV - Free Report) in August, contributed $2 million to revenues in the quarter.
Alprolix and Eloctate, Biogen’s hemophilia treatments, recorded revenues of $132 million and $85 million, respectively, both showing sequential growth of 6%.
In the quarter, Biogen recorded biosimilar revenues of $31 million compared with $15 million in the second quarter. It launched biosimilar versions of Johnson & Johnson (JNJ - Free Report) and Amgen Inc.’s (AMGN - Free Report) blockbuster drugs, Remicade and Enbrel, respectively, in Europe.
Anti-CD20 revenues declined 6% from the year-ago period to $318 million in the third quarter.
R&D spend declined 2% in the reported quarter to $529 million while SG&A spend came in at $461 million, 4% higher year over year.
In the quarter, the company repurchased shares worth $349 million.
2016 Outlook
The company did not provide any update regarding its previously issued full-year outlook. At the second quarter conference call, Biogen said it expects earnings of $19.70 to $20.00 per share on revenues of $11.2 billion to $11.4 billion in 2016. Guidance includes contribution from the hemophilia business, which Biogen expects to spin-off in early 2017.
BIOGEN INC Price, Consensus and EPS Surprise
BIOGEN INC Price, Consensus and EPS Surprise | BIOGEN INC Quote
Our Take
Biogen’s third-quarter results were impressive with the company surpassing earnings expectations by a fairly decent margin. The stock, which has been under pressure on concerns regarding a slowdown in Tecfidera’s growth rate as well as overall concerns regarding pricing in the biotech sector, saw its key MS drugs Tecfidera and Tysabrirecording a sequential improvement. Investors should be cheered by this. The hemophilia franchise also performed well.
Biogen carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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