Biogen Beats, Tecfidera Continues to Shine - Analyst Blog
January 29 2014 - 1:32PM
Zacks
Biogen Idec (BIIB) reported fourth quarter
earnings per share of $2.34 (including the impact of stock-based
compensation expense), well above the Zacks Consensus Estimate of
$2.22 and 67.1% above the year-ago earnings.
Fourth quarter 2013 revenues increased 29% to $1.97 billion,
above the Zacks Consensus Estimate of $1.93 billion. Newly launched
multiple sclerosis (MS) drug, Tecfidera, drove fourth quarter
results.
Including one-time items, fourth quarter 2013 earnings increased
56.1% to $1.92 per share.
Full-year earnings grew 37.2% to $8.93 per share, beating the
Zacks Consensus Estimate of $8.81 per share. Revenues increased
25.7% to $6.93 billion, above the Zacks Consensus Estimate of $6.89
billion.
The Quarter in Detail
Fourth quarter Tysabri revenues increased 45% to $427 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 1%. We believe
global in-market net revenues were impacted by the switching of
patients to Tecfidera as well as oral competition in the EU.
Biogen has yet to record a benefit of about $95 million related
to the pending settlement with the Italian National Medicines
Agency.
Meanwhile, Avonex, Biogen’s lead MS product, posted fourth
quarter revenues of $751 million. While revenues remained unchanged
from the year-ago period, they improved 2.5% sequentially. Avonex
revenues in ex-U.S. markets were $277 million.
Rituxan and Gazyva revenues declined 4% to $269 million in the
fourth quarter.
Tecfidera, the latest offering from Biogen’s MS portfolio,
continues to impress with sales coming in at $398 million – this
includes patient demand of approximately $348 million and inventory
stocking of approximately $42 million. Fourth quarter Tecfidera
sales were well above third quarter sales of $286 million.
Tecfidera is the leading oral MS therapy in the U.S. Biogen had
launched Tecfidera in early Apr 2013 in the U.S.
Mixed Guidance for 2014
Biogen provided guidance for 2014. The company expects earnings
in the range of $11.00 - $11.20 per share on revenue growth of 22%
- 25%. The Zacks Consensus Estimate of $11.79 per share is far
above the company’s guidance range. However, revenue guidance is
above the current expectations of revenue growth of 20%.
The company expects to spend 20% - 22% of total revenues and 22%
- 23% of total revenues on R&D and SG&A, respectively.
Our Take
Biogen ended the year on a strong note with Tecfidera continuing
with its impressive performance. However, the company’s guidance
for 2014 was mixed with earnings guidance falling well short of
expectations and revenue guidance coming above. This year, the
company could launch three products: Eloctate and Alprolix for
hemophilia patients and Plegridy for MS. Moreover, Tecfidera should
gain EU approval shortly.
Biogen is a Zacks Rank #2 (Buy) stock. Some better-ranked stocks
in the health care sector include Medivation Inc.
(MDVN), Actelion Ltd. (ALIOF) and
Affymetrix Inc. (AFFX). All three carry a Zacks
Rank #1 (Strong Buy).
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
ACTELION LTD (ALIOF): Get Free Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
MEDIVATION INC (MDVN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Oct 2023 to Oct 2024