On May 2, biopharmaceutical firm Biogen Idec (NASDAQ:BIIB) released first-quarter earnings for the period ended March 31.

  • Revenue grew by 17.1%, primarily driven by the robust performance of the company's flagship product, Avonex, and royalties from Rituxan, which is marketed by Genentech (NYSE:DNA).
  • The bottom line has increased by a mere 6.9%, on account of a more than 30% rise in research and development expense coupled with higher sales, general, and administrative expenses, which consequently have eroded operating margins.
  • The company announced initiation of the phase 3 clinical program for multiple-sclerosis drug BG-12. If successful, this would extend the company's already broad reach in the MS market.
  • For fiscal 2007, the company expects diluted EPS in the range of $1.69 to $1.84, excluding any future acquisitions or other transactions.
  • For additional information on Biogen's earnings, please see "Biogen's Measured Growth."

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$715.9

$611.2

17.1%

Net Profit

$131.5

$123.0

6.9%

EPS

$0.38

$0.36

5.6%

Diluted Shares

344.1

345.8

(0.5%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

88.6%

89.0%

(0.4)

Operating Margin

25.4%

28.3%

(2.9)

Net Margin

18.4%

20.1%

(1.8)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + Invest.

$2,513.2

$2,550.7

(1.5%)

Accounts Rec.

$324.6

$417.4

(22.2%)

Inventory

$186.2

$191.0

(2.5%)

The balance sheet reflects the company's health.

Cash Flow Highlights
A statement of cash flows was not provided. Boo!

Free cash flow is a Fool's best friend.

Related Foolishness:

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