Biogen Idec's Profit Soars 56% as Tecfidera Sales Take Off

Biopharmaceutical behemoth Biogen Idec (NASDAQ: BIIB  ) showed investors this morning why having a niche focus on one particular disease -- in this case multiple sclerosis -- isn't a bad way to turn a sizable profit.

In its fourth-quarter earnings release, Biogen Idec notes that revenue rose a whopping 39% over the previous year to $1.97 billion as profit soared 56% to an adjusted $1.92 per share from the $1.23 reported in the year-ago period.

Without question, the story of this earnings report is the continued outperformance of oral relapsing MS treatment Tecfidera, which was approved by the Food and Drug Administration last March. For the quarter, Tecfidera sales totaled $398 million (handily making it the best-selling oral MS therapy), of which $42 million is estimated by Biogen Idec to be stockpiling toward the end of the quarter. With sales totaling $876 million within the first three quarters Tecfidera appears well on its way to blockbuster status.

The remainder of Biogen's MS franchise demonstrated more modest growth, with Avonex sales flat at $751 million and Tysabri revenue up 45% due in part to Biogen's now full global ownership rights to the treatment, which it bought from Elan for $3.25 billion last year. Overall sales of Tysabri struggled to gain traction as a dispute with the Italian National Medicines Agency relating to Tysabri was not settled during the fourth quarter as expected.

Biogen Idec also spent a considerable amount of time in its report talking about its upcoming milestones in 2014, which include the expectation of bringing three new drugs to market: two new hemophilia treatments (eloctate and alprolix) and a pegylated interferon treatment for MS.

Looking ahead, Biogen Idec is forecasting 2014 full-year revenue growth of 22% to 25%, which would imply $8.45 billion to $8.66 billion in revenue, and adjusted EPS ranging from $11 to $11.20 per share, a nice improvement from the adjusted $7.81 reported last year. Biogen anticipates research and development expenses will rise 20% to 22% in 2014 with $200 million being earmarked for new business-development deals.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2814975, ~/Articles/ArticleHandler.aspx, 8/29/2015 11:49:16 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
BIIB $303.69 Down -0.80 -0.26%
Biogen Idec CAPS Rating: ****
ELN.DL2 $0.00 Down +0.00 +0.00%
Elan CAPS Rating: ***