Cambridge, MA-based Biogen ( BIIB ), one of the world’s leading biotechnology companies, focuses on therapeutic areas including neurology, immunology and hemophilia. However, the company is best known for its multiple sclerosis (MS) franchise comprising treatments like Avonex, Tysabri, Tecfidera and Plegridy.
Biogen also has a presence in the hemophilia market with two marketed products in its portfolio – Alprolix and Eloctate. The MS franchise remains the main contributor to the top line and Biogen is working on consolidating its position in the MS market.
With Biogen reporting a moderation in new starts for Tecfidera over the last two quarters, investor focus will remain on scrip growth of this oral MS treatment in the coming quarters. Tecfidera’s U.S. label was updated in Dec 2014 following the reporting of a progressive multifocal leukoencephalopathy (PML)-related death of a patient on Tecfidera. The continued ramp up of Plegridy will also be in focus.
BIIB has a pretty good earnings track record with the company delivering positive earnings surprises in three of the last fourth quarters with an average surprise of 12.28%. Estimate revisions are mostly positive with analysts upping their estimates for 2015.
Currently, BIIB has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings Beat: BIIB’s second quarter 2015 earnings were better-than expected. The company posted earnings of $4.22 per share while our consensus called for EPS of $4.07.
Revenues Miss: Biogen posted revenues of $2.591 billion, missing the consensus estimate of $2.711 billion.
Lowers Guidance: Based on revised expectations for Tecfidera’s growth, Biogen now expects EPS in the range of $15.50 – $15.95 on revenue growth of 6% – 8%. This is well below the guidance provided in January – EPS of $16.60 – $17.00 per share on revenue growth of 14% – 16%.