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Biogen (BIIB) Beats on Q2 Earnings by a Huge Margin

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Cambridge, MA-based Biogen (BIIB - Free Report) , one of the world’s leading biotechnology companies, focuses on therapeutic areas including neurology, immunology and hemophilia. 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.

Since the emergence of the first progressive multifocal leukoencephalopathy (PML)-related death in a patient on oral MS drug, Tecfidera, Biogen has been reporting a slowdown in Tecfidera’s growth rate. Investor focus will remain on scrip growth of this oral MS treatment in the coming quarters. 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 each of the last four quarters with an average surprise of 9.54%.

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:

Huge Earnings Beat: BIIB’s second quarter 2016 earnings were far better-than expected. The company posted earnings of $5.21 per share while our consensus called for EPS of $4.69.

Revenues Top: Biogen posted revenues of $2.9 billion, beating the consensus estimate of $2.8 billion. Tecfidera revenues improved 4% sequentially.

Updates Outlook: Biogen now expects earnings of $19.70 - $20.00 per share on revenues of $11.2 - $11.4 billion. Earlier this year, the company had guided towards 2016 earnings of $18.30 - $18.60 per share on revenues of $11.1 - $11.3 billion. The Zacks Consensus estimate for revenues and earnings is currently $11.3 billion and $19.04 per share, respectively.

The Board also authorized a share buyback program worth up to $5 billion.

CEO to Step Down: Biogen also announced that its Chief Executive Officer, George A. Scangos, will step down in the coming months after a successor is identified.

Pre-Market Trading: Shares were up more than 5% in pre-market trading.

Check back later for our full write up on this BIIB earnings report later!

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