Biogen Profit Easily Tops Views
October 26 2016 - 8:30AM
Dow Jones News
Biogen Inc., which has been working to reinvigorate growth, said
its profit rose and easily topped Wall Street's expectations in the
latest quarter as sales of its largest multiple sclerosis drug
drove higher sales.
Shares, which have climbed 4.2% in the past 12 months, rose 2.1%
to $292 in premarket trading.
The vast majority of Biogen's revenue comes from multiple
sclerosis drugs that some analysts see as growing relatively
slowly. Cambridge, Mass.-based Biogen has focused its
research-and-development efforts on new treatments for multiple
sclerosis and other neurodegenerative conditions, such as
Alzheimer's disease and Parkinson's disease. The firm is spinning
off its hemophilia drug business, where sales have been rising at a
faster clip but make up a smaller chunk of total revenue.
Sales of its biggest drug, Tecfidera, grew 10% its latest
quarter and drove growth. Tecfidera brought in $1.03 billion during
the period, representing roughly 41% of product revenue. The
company said the MS drug was helped by inventory build.
Meanwhile, the company's two hemophilia drugs grew at a much
faster pace, and brought in a combined $217 million.
Chief Executive George Scangos announced in July he would be
leaving the company, allowing a new chief to lead the company as it
works to reignite growth. The biotechnology giant has also drawn
takeover interest from drug companies such as Merck Co. and
Allergan PLC, The Wall Street Journal reported in August.
Overall for the third quarter, Biogen reported a profit of $1.03
billion, or $4.71 a share, up from $965.6 million, or $4.15 a
share, a year earlier. Excluding the restructuring charges, among
other items, per-share earnings rose to $5.19 from $4.48.
Total revenue rose 6% to $2.96 billion. Analysts had projected
adjusted earnings of $4.97 a share on sales of $2.91 billion,
according to Thomson Reuters.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 26, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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